Satin Creditcare Network Limited (SCNL) is a leading microfinance institution (MFI) with a presence in 23 states & union territories and 95,000 villages across India. Formed in 1990 as a Non-Banking Finance Company (NBFC) to provide individual loans to urban shopkeepers for tiny businesses, SCNL was officially classified as an NBFC-MFI by the Reserve Bank of India (RBI) in 2013, marking its full transition into microfinance.
The company has evolved from its humble beginnings into one of India's prominent microfinance institutions, serving over 3.4 million clients through its extensive network. Today, Satin Creditcare operates across 24 states in India, with a vast network of over 1,165 branches and a workforce exceeding 11,000 employees. The institution primarily focuses on providing collateral-free microcredit facilities to economically active women, particularly in rural and semi-urban areas.
Satin Creditcare Network Limited (SCNL) offers a comprehensive bouquet of financial products. In the Non-MFI segment, it provides loans to MSMEs, while its housing finance subsidiary addresses housing needs. Additionally, through Taraashna Financial Services Limited (TFSL), a 100% subsidiary, SCNL provides business correspondent services and similar services to other financial institutions.
SCNL's core offerings include Microfinance for Income Generating Loans (IGL), Housing Finance, Long Term Loans (LTL), Social Impact Financing through product loans & WASH loans, and loans to MSMEs. The Income Generation Loan is specifically tailored to uplift economically weaker sections by providing financial assistance for activities such as agriculture, transportation, trading, and production-related businesses. Loan amounts range from INR 10,000 to INR 1,00,000, with repayment periods spanning 12 to 48 months. The interest rates are competitive, ranging between 21% to 25% on a reducing balance basis.
The company primarily operates through the Joint Liability Group (JLG) model, which has proven effective in reaching underserved communities. By providing collateral-free microcredit facilities, SCNL ensures financial inclusion for women entrepreneurs who lack access to traditional banking. Beyond core microfinance operations, SCNL has strategically diversified into housing finance, MSME lending, and business correspondent services to create a comprehensive financial ecosystem.
As of December 2024, Satin Creditcare Network Limited boasts a Market Capitalization of ₹1,857 crore. The company has demonstrated significant scale in its operations, with Assets Under Management (AUM) exceeding INR 9,800 crore as of December 2023, showcasing its substantial presence in the microfinance sector.
* Q4 FY2024-25 Performance (March 2025):
* Revenue: ₹622.50 crore
* Net Profit: ₹21.89 crore
* Net profit declined 82.93% compared to Q4 FY2023-24 (₹128.22 crore).
* Q3 FY2024-25 Performance (December 2024):
* Revenue: ₹687.59 crore (jumped 15.31% YoY)
* Net Profit: ₹14.26 crore (fell -87.39% YoY)
* Net Profit Margin: 2.07% (fell -89.06% YoY)
* Full Year FY2023-24 Performance:
* Profit: ₹435.94 crore
* Total Income: ₹2,233.96 crore
The company has faced some challenges in recent quarters. Satin Creditcare Network reported a significant 67% decline in Q4 net profit (to Rs 41 crore) in a previous period due to rising credit costs and muted asset growth. The company's net sales also fell by 5.53% year-on-year in that period. Despite these challenges, AUM grew by 6.8%. Overall, FY2024-25 was more challenging than FY2023-24, with a notable increase in credit costs and asset quality stress.
* Market Capitalization: ₹1,857 crore (as of December 2024)
* Assets Under Management (AUM): >INR 9,800 crore (as of December 2023)
* Promoter Holding: 36.17% (as of March 2025)
* Q4 FY2024-25 Revenue: ₹622.50 crore
* Q4 FY2024-25 Net Profit: ₹21.89 crore
* Q3 FY2024-25 Revenue: ₹687.59 crore
* Q3 FY2024-25 Net Profit: ₹14.26 crore
SCNL has demonstrated consistent growth in its AUM, which stood at INR 10,100 crore as of September 30, 2023, reflecting an annualized growth rate of 23% in H1 FY2023-24. This increase highlights the company's strong lending capabilities and efficient portfolio management. Additionally, its standalone AUM grew by 26% (annualized) to INR 8,894 crore, showcasing its continued expansion in microfinance lending.
The company has built a robust operational infrastructure with 1,335 branches at a consolidated level and serves a vast customer base across 412 districts as of September 2023. This extensive reach positions SCNL well to capture opportunities in India's growing microfinance market.
Promoter holding in Satin Creditcare Network Ltd has remained at 36.17% as of March 2025, consistent with June 2024. The company has attracted significant institutional investor interest and successfully raised INR 250 crore via a Qualified Institutional Placement (QIP) in December 2023, ensuring sufficient capital for future expansion.
Recent corporate actions include the re-appointment of the MD for 5 years, the appointment of 2 independent directors, the resignation of 1 director, and a proposal to raise INR 5,000 crore through Non-Convertible Debentures (NCDs). The company has also been active in debt fundraising, with the Board set to consider a private placement of non-convertible debentures on July 1, 2025.
Satin Creditcare Network Limited submitted its Annual Secretarial Compliance Report for FY 2023-24, confirming adherence to regulatory compliance and auditor appointment. The company maintains strong regulatory compliance standards as required for NBFC-MFI operations under RBI guidelines.
However, investors should note that the company has a low interest coverage ratio, which indicates some pressure on its ability to service debt obligations from operational earnings. This metric requires monitoring given the capital-intensive nature of the microfinance business.
Founded in 1990, SCNL has established itself as a formidable player in the microfinance sector with operations spanning 23 states and union territories, serving over 95,000 villages. With a customer base exceeding 34.6 lakh customers, the company has demonstrated remarkable reach and operational capability.
The company's strategic focus on financial inclusion, particularly for women entrepreneurs in underserved markets, aligns well with India's broader development goals. With subsidiaries like Taraashna Financial Services Limited expanding its service offerings, Satin Creditcare continues to evolve beyond traditional microfinance. This diversification strategy helps reduce concentration risk while creating multiple revenue streams.
Satin Creditcare Network Limited represents a significant player in India's microfinance sector, with extensive operational reach and a proven track record of serving underserved communities. While recent financial performance has shown some challenges, the company's strong market position, diversified product portfolio, and focus on financial inclusion provide a foundation for long-term growth in India's expanding microfinance market.
