Microfinance Institution Secures USD 100 Million Social Loan to Boost Financial Inclusion
With a PE ratio of 5.4x, the company trades at a discount compared to the industry PE of 19.4x. The company has ROCE of 16.6 per cent and ROE of 21.6 per cent.
Satin Creditcare Network Limited (SCNL), a prominent microfinance institution in India, has successfully raised USD 100 million through its first syndicated social loan transaction. The loan, arranged by Standard Chartered Bank, includes participation from six major Sri Lankan banks: Hatton National Bank, National Development Bank, Seylan Bank, Pan Asia Banking Corporation, Commercial Bank of Ceylon, and DFCC Bank. This social term loan was secured under the Reserve Bank of India's automatic route for External Commercial Borrowing (ECB) and includes a greenshoe option of USD 25 million. The agreement, signed in February 2025, disbursed its first tranche on 12th March 2025.
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The loan, with a tenor of 3 years and 3 months, is benchmarked to a 3-month Term SOFR (Secured Overnight Financing Rate). This funding aims to expand financial services access, promote economic participation, and drive development in underbanked regions of India. It also enhances SCNL's Asset and Liability Management (ALM) position and reduces its cost of funds. Dr. HP Singh, Chairman and Managing Director of SCNL, highlighted the significance of this transaction in establishing a strong international presence and fostering financial inclusion, particularly for rural women and underserved communities.
Satin Creditcare Network Limited (SCNL) is a leading microfinance institution in India, operating across 29 states and union territories. The company serves approximately 33.9 lakh clients through 1,535 branches. SCNL's stock is currently priced at Rs 143.55, with a market capitalisation of Rs 1,583.60 crores. The stock has experienced a 27.45 per cent decline over the past year but has shown a 55.65 per cent return over three years. SCNL continues to focus on providing financial services to underserved communities, including loans to MSMEs and affordable housing loans through its subsidiaries, Satin Housing Finance Limited and Satin Finserv Limited.
As of December 2024, the shareholding pattern is as follows: Promoters hold 36.17 per cent, Foreign Institutional Investors (FIIs) hold 4.83 per cent, Domestic Institutional Investors (DIIs) hold 6.11 per cent, the Public holds 52.45 per cent, and Others hold 0.44 per cent. There is a decline in FIIs’ shareholding from 6.09 per cent in the previous quarter to 4.83 per cent, while the Public shareholding increased from 50.70 per cent to 52.45 per cent.
With a PE ratio of 5.4x, the company trades at a discount compared to the industry PE of 19.4x. The company has ROCE of 16.6 per cent and ROE of 21.6 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.