Mr. Shachindra Nath Archives - Media Bulletins Today News Bulletin in English

Shachindra Nath, Executive Chairman & Managing Director,U GRO...

Business, News

U GRO Capital to become the first FinTech Lending platform to be listed on both stock exchanges starting August 11

Aug 10, 2021 by Rekha Nair 0 Comments #Executive Chairman and Managing Director, #Mr. Shachindra Nath, #U GRO Capital

U GRO Capital, a technology enabled small business lending NBFC, today announced that it will get listed on the National Stock Exchange (NSE) on August 11. The company is listed on Bombay Stock Exchange (BSE) and with the NSE listing, the company aims to expand access to a larger set of investors and broker network. U GRO Capital’s fully paid-up 70,528,550 shares with face value of Rs. 10 each, symbol UGROCAP and series EQ, will be admitted to dealings on NSE.

U GRO Capital was instituted in 2017 by Mr. Shachindra Nath, with the buyout of Chokhani Securities Limited. This followed its re-capitalization and rebranding with a Tech-enabled MSME Lending Business model and diverse management team amassing 250 years of combined experience across the financial spectrum. The company has raised approximately INR 920 crore of capital from a diversified set of institutional investors like private equity funds and well-known family offices.

This model of acquiring a small, listed company and raising significant capital to build a FinTech platform was an industry first conceptualization. In most cases, the benefit of value creation through early-stage formation is only available to private investors. This distinctive model was adopted by U GRO Capital to provide the similar benefit to millions of retail investors in public markets.

The company is focused on addressing capital needs of small businesses operating in select eight sectors & Microenterprises by providing customized loan solutions. Towards the realization of the same, the company has built a distinctive technology architecture, a robust and highly efficient distribution channel. This has allowed the company to scale up to 34 branches across 9 states and serve over 9,000 MSME customers, within just three years of operations.

U GRO aspires to build an INR 20,000 Crores of asset under management in next five years and take approximately 1% market share of the outstanding MSME Credit in India by opening around 270 branches with an aim to serve over lacs of small business customers.

Mr. Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said, “We, at U GRO Capital, are delighted and consider getting listed on National Stock Exchange as a significant milestone. With this development, we aim to expand access to a larger set of investors and broker community. Our progress in three years has resonated well with our mission of solving the unsolved MSME credit gap. Continuing the momentum of achieving significant milestones as this, we plan to acquire 1% market share of the MSME lending business in India in the next five years, thereby creating value for our growing investor community.”

Business, News

FM announcement – ECLGS outlay expansion, Quote by U GRO Capital

Jun 29, 2021 by Rekha Nair 0 Comments #Emergency Credit Line Guarantee Scheme, #Executive Chairman and Managing Director, #Finance Minister, #Mr. Shachindra Nath, #Nirmala Sitharaman, #U GRO Capital

The Finance minister Nirmala Sitharaman today announced multiple relief measures, including the extension of the “Emergency Credit Line Guarantee Scheme (ECLGS) outlay,” “credit guarantee scheme for 25 Lakh individuals through the micro-finance institutions” and “financial measures for the tourism sector.”

Basis the same, please find appended the quote by Mr. Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital. Have also attached his high-resolution picture for your reference.

The Finance Minister today has announced the much needed relief measures, for multiple affected sectors. Considering the fact that almost 90% of the Emergency Credit Line Guarantee Scheme (ECLGS) outlay was effectively utilized to support the affected MSME sector, an additional Rs 1.5 lakh crore will greatly catalyze the revival as well as growth processes of the MSMEs. This announcement came at a significant moment, as the World MSME day was celebrated a day prior. Further, credit guarantee scheme for 25 Lakh individuals through the micro-finance institutions and the financial measures announced for the tourism sector are much appreciated. With the economy carefully opening up in stages, the announced measures will certainly prove viable for the MSMEs and individuals towards their efforts to overhaul the broken cash-flows.

Business World, News

U GRO Capital partners with SBM Bank India to launch ‘GRO Smart Business’ credit card for MSMEs

Apr 8, 2021 by Rekha Nair 0 Comments #Executive Chairman & Managing Director, #Head - Consumer & Retail Banking, #Mr. Shachindra Nath, #Neeraj Sinha, #SBM Bank India, #U GRO Capital

U GRO Capital, a BSE listed, sector focused small business lending fintech platform, today announced its partnership with SBM Bank India towards the launch of ‘GRO Smart Business’ credit card, powered by RuPay, along with EnKash. These are a range of secured credit cards specially designed for underbanked micro, small and medium enterprises (MSMEs). These can be availed by the U GRO Capital borrowers against a fixed deposit with SBM Bank India.

The credit card offers a gateway to #SmartBanking features to empower MSME entrepreneurs solve multiple financial challenges. These include meeting immediate expenses like purchases of equipment and supplies, manage vendor payments, make business utility bill payments, as well as managing reimbursements for travel and entertainment expenses of employees. Further with the Fixed Deposit facility, MSME borrowers would be able to build a long-term wealth creating asset.

Commenting on the launch, Mr. Shachindra Nath, Executive Chairman & Managing Director, U GRO Capital stated, “We are elated to collaborate with SBM Bank India and launch this distinctive arrangement powered by the RuPay Network. The ‘GRO Smart Business’ Credit Card will allow our MSME customers to manage their urgent credit requirements and cash-flows effectively. MSMEs face a frequent need of urgent credit, catering to which becomes a challenge causing drastic cash flow disruptions. This arrangement will enable the businesses to tackle these situations effectively. We have been constantly exploring impactful solutions to support the revival and growth of the nation’s MSMEs. We believe this collaboration to be a significant initiative in the right direction.”

The pandemic induced dynamic circumstances have led to a realization of the need to innovate and arrive at holistic solutions to the MSME credit issues. Various businesses have been affected due to unavailability of requisite funds during urgent requirements. Needless to say, fintechs and NBFCs with their nimble nature are sufficiently equipped with operational and technological capabilities to bridge the credit gap.

Speaking on the initiative, Neeraj Sinha, Head – Consumer & Retail Banking, SBM Bank India, said, “At SBM Bank India, we are committed to use the power of banking, technology and collaboration to create uniquely smart solutions. The launch of ‘GRO Smart Business’ credit card is in line with the same strategy. We are proud to partner U GRO Capital for the new product.”

The MSMEs eligible for the business loans from U GRO Capital would be extended incremental funds to open a Fixed Deposit account with SBM Bank and the credit card shall be offered against the security of a Fixed Deposit maintained by the applicant in his name. The terms and conditions of this credit facility shall be as per the existing policies of U GRO Capital.

Features of the Credit card:

· Card type: Corporate owned Individual liability

· Limit: 90% of FD amount

· Joining & Annual Fees: Zero

· Finance Charges: 1.99% (monthly)

· Interest free period/Cash advance interest free period: Max. 50 days

· Cash Advance limit: 30%

· The card shall have a ‘Tap-To-Pay’ functionality for contactless payments and can be used to withdraw cash from the ATMs upto a certain limit of the total credit limit at a charge

Features of the Fixed Deposit:

· Amount: Rs. 10,000 – Rs. 10 lakhs

· Tenure: 1-5 years

· Rate of Interest: 7.5% (fixed)

· Required Documentation: AADHAR based OKYC & e-PAN verification (No hard documents required)

· Time required to open the Fixed Deposit: 3 hrs

Note: The above features are subject to change as per SBM Bank policies.

Business World

U GRO Capital reports Rs. 17.2 crores net profit in Q2 FY 2021; raises capital of Rs. 191 crores

Nov 18, 2020 by Gouri Achary 0 Comments #Mr. Shachindra Nath, #U GRO Capital

The key highlights for Q2 FY21:

Loan Portfolio

• The Company’s disbursals to date reached INR 1,697 crores at the end of Q2 FY21 despite the on-going COVID-19 related disruptions to business activity

• The Company’s monthly disbursal run rate has reached pre-COVID levels, with September 2020 disbursals at INR 116 crores

• The Company’s AUM as of the end of September 30, 2020, stood at INR 978 crores across 7,734 live loans. The loan book is 67% secured and the largest sectoral and geographical concentrations both stand at 21%

• Portfolio GNPA and NNPA stand at 1.9% and 1.2% respectively, without accounting for the Hon’ble Supreme Court dispensation of September 2020

Liability and Liquidity Position

• The Company has 16 active lenders including PSU banks, Private sector banks and other Financial Institutions on its borrowing book

• The Company has raised an incremental INR 191 crores of liability in Q2, for a total of INR 578 crores of sanctioned liability at an on-book blended rate of 10.6%, with debt costs having significantly reduced in FY21

• The Company maintains a strong liquidity profile with nearly INR 300 crores of cash and equivalents, and a further INR 180 crores of undrawn debt sanctions

• The Company maintains a CRAR of 85.8%, well above industry standards

Financial Performance

• The Company has taken a conservative approach to provision for loan loss, with a total provision of INR 11.8 crores, of which INR 3.8 crores is COVID-19 specific

• The Company’s total income increased to INR 34.8 crores in Q2 FY21 from 30.8 crores in Q1 FY21 – a 13% growth QoQ , as compared to INR 21.7 crores in Q2 FY20

• The Company declared a Q2 FY21 PAT of INR 17.2 crores, as compared to a loss of INR 3.3 crores in Q2 FY20

• The net worth of the Company stands at INR 944 crores as on September 30, 2020

Operational Parameters

• The GRO Partner network now stands at 518 partners, a 32% increase on Q1 FY21

• The Company has onboarded 24 ecosystem partners and 32 corporate partners

• A total of 194 employees have now been onboarded across nine branches: Mumbai (Head Office), Delhi, Kolkata, Bangalore, Chennai, Hyderabad, Ahmedabad, Jaipur and Pune

Expansion to Cater to Microenterprises

• The Company is introducing ‘Saathi’, a line of the smaller ticket, higher yield and shorter tenor secured products for microenterprises

• The current branch network will be substantially expanded upon in Q3 FY21, with direct distribution branches to be inaugurated across Tier II/III locations in Tamil Nadu, Rajasthan, Karnataka, Gujarat and Telangana

• The Company will be among the first lenders integrated on the Government’s GeM Sahay platform, providing access to over 2.4 lakh sole proprietorships that supply a cumulative value of INR 18,935Cr

U GRO Capital, a BSE listed, technology-focused platform, announced its Q2 FY21 financial results and posted a PAT of INR 17.2 Cr. This has been achieved while maintaining a consistently conservative approach to provisioning, with INR 3.93 crores of provisioning expenses in Q2. Despite the adverse economic and business conditions brought about by COVID-19, U GRO Capital has declared profits in both Q1 and Q2 of FY21.

The Company is, at this juncture, focused on achieving maximal growth, particularly in the microenterprises segment, while protecting its balance sheet and preserving its strong liquidity position. Given its healthy capital adequacy, low gross NPA and net NPA, diversified portfolio mix, granular geographical distribution and strong risk metrics, the Company is confident in achieving its growth goals while maintaining its conservative approach.

Commenting on the results, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “This quarter has seen the gradual shift towards business normalcy in the MSME space, which is a very positive sign for the economy as a whole. Never before have fundamentally strong MSMEs have had such a need for financing, and we are working towards addressing as many of these needs as is possible. We have taken great strides in terms of innovation and in our partnerships, and we are superbly placed to increase our distribution levels beyond what they were pre-COVID. I am most excited about the launch of our ‘Saathi’ program and our nascent direct distribution branches, which will broaden our target demographic considerably.

We are proud of the financial prudence that has allowed us to maintain profitability throughout the COVID-19 period in spite of the ample provisioning we have taken. Our portfolio remains strong in the face of unprecedented challenges, and we are confident that we are on the right path to achieve our vision of ‘Solving the Unsolved – India’s $300B MSME Credit Gap.”

Photograph 1_Shachindra Nath, EC & MD, U GRO Capital (1)

Business World

U GRO Capital solidifies liability base of INR 400 crores; July disbursals bounce back to 80% of pre-COVID levels

Aug 18, 2020 by Gouri Achary 0 Comments #Mr. Shachindra Nath, #U GRO Capital

U GRO Capital solidifies liability base of INR 400 crores; July disbursals bounce back to 80% of pre-COVID levels

Key highlights for Q1 FY21 2020:

Loan Portfolio

• The Company’s AUM at the end of June 30, 2020, stood at INR847.4 crores across 7,343customers. Of the total loan book, 69% is secured. Sectors including Education, Light Engineering and Electrical Equipment & Components constitute54%ofthe total loan book whereas geographical concentration at a state-level is at a maximum of 21%

• The disbursals have resumed across all U GRO Capital locations amid the lockdown, with July figures reaching approximately 80% of pre-COVID levels

• The Company is focused on lending through its Sanjeevani program for essential goods/services providers and ECLGS in near future, with high market demand demonstrated for both

Liability

• Liability book reached INR 387 crores as of the end of Q1 FY21, sourced from multiple public & private sector banks in various forms including term loans, NCDs and commercial papers

• In the period between March-July 2020, the Company has raised an incremental INR 150 crores of sanctions, of which over INR 100 Cr of sanctions have not yet been drawn down on

• U GRO Capital has availed liability through select government programs including the Partial Guarantee Scheme and TLTRO 2.0

• The Company has issued its first set of commercial papers in July 2020 – 12-month tenor with a face value of INR 10 crores

• The Company’s borrowing rates have come down considerably in the past 6 months, with an average rate at 10.5% as of June 30, 2020

• The Company remains highly liquid with over INR 300 crores of liquidity on the balance sheet

COVID-19 Response

• The Company’s loan under moratorium 2.0 stood at 63% in comparison to 81% as under moratorium 1.0, The non-moratorium book continues with collections efficiency close to 100%

• The Company has taken a highly conservative Rs. 11.63 crores of total provisioning (cumulative), of which Rs. 4.49 crores is specific to COVID-19. This is a significantly higher provisioning coverage than required by regulatory norms

• The work processes have been completely digitized to ensure full productivity of employees during the work from the home phase, with in-person interactions with customers being replaced with digital equivalents

Financial Performance
• The Company’s total income stands at Rs. 30.79 crores for Q1 FY21 with a PAT of Rs. 3.73 crores and CRAR of 99.42%

• The net worth of the Company stands at Rs. 926.1 crores as of June 30, 2020 with book value per share being INR 131.31

• The Company’s GNPA and NNPA figures stands at 1.02% and 0.57% respectively

Operational Parameters

• The GRO Partner network (DSAs) now stands at 393 partners, an 11%increase compared to Q4 FY20

• A total of 177 employees have now been onboarded across nine branches: Mumbai (Head Office), Delhi, Kolkata, Bangalore, Chennai, Hyderabad, Ahmedabad, Jaipur and Pune

• Keeping in mind the social distancing norms, the Company has seamlessly transitioned to a consolidated platform conducting Video PDs rather than the in-person process, in turn maintaining strict underwriting standards and not jeopardizing the health of the customers or employees

• The Company has registered with CGTMSE, allowing 75% credit guarantee for credit facilities of INR 2 crores and under for micro and small enterprises

• The Company has taken cost optimization measures during the COVID-19 period, leading to significant savings on operating expenses

U GRO Capital, a BSE listed, technology-focused platform, today announced its financial results for Q1 FY21. With technology and innovation being the backbone, U GRO Capital strives towards bridging the SME lending gap. We observed the past few months of lockdown as a critical opportunity to reflect, contemplate and work towards enhancing the Company’s strategic fronts. This involved review of existing processes and the use of technology to digitize underwriting processes and render them contactless, to be able to address the requirement of MSMEs remotely in-line with the new normal.

Commenting on the results, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “Stepping into 2020, businesses were already facing the brunt of economic slowdown when the pandemic arose to exacerbate the pain. For us, the circumstances called for a degree of improvisation in the form of digitalization, so as to be able to operate effectively in these unprecedented times. Having done so, our disbursals across all U GRO locations have gained ground amid the lockdown scenario, with our July disbursal figures reaching approximately 80% of pre-COVID levels. With the economy gradually opening, Indian small businesses have started taking small steps towards regaining their operational potential and are thus looking for liquidity infusions, as reflected in our success with Sanjeevani program and ECLGS. Our loan book cover under Moratorium 2.0 is at 63%, which is a significant reduction from the 81% as during the Moratorium 1.0. Towards strengthening our funding base, we managed to raise liability of over Rs. 150 crores from diverse sources, including under government schemes such as PGC and TLTRO 2.0, and we have a strong pipeline in place to cater to our future liability needs also. I believe that the worst is now behind us in the lending sector, and the well-run firms will enjoy the opportunity to build their market share in the coming months.”

Shachindra Nath, EC & MD, U GRO Capital.jpg

Business World

U GRO Capital solidifies liability base of INR 400 crores; July disbursals bounce back to 80% of pre-COVID levels

Aug 14, 2020 by Gouri Achary 0 Comments #Executive Chairman and Managing Director of U GRO Capital, #Mr. Shachindra Nath

Key highlights for Q1 FY21 2020:

Loan Portfolio

 The Company’s AUM at the end of June 30, 2020 stood at INR 847.4 crores across
7,343 customers. Of the total loan book, 69% is secured. Sectors including
Education, Light Engineering and Electrical Equipment & Components constitute
54% of the total loan book whereas geographical concentration at a state-level is
at a maximum of 21%

 The disbursals have resumed across all U GRO Capital locations amid the
lockdown, with July figures reaching approximately 80% of pre-COVID levels

 The Company is focused on lending through its Sanjeevani program for essential
goods/services providers and ECLGS in near future, with high market demand
demonstrated for both Liability

 Liability book reached INR 387 crores as of the end of Q1 FY21, sourced from
multiple public & private sector banks in various forms including term loans,
NCDs and commercial papers

 In the period between March-July 2020, the Company has raised an incremental
INR 150 crores of sanctions, of which over INR 100 Cr of sanctions have not yet
been drawn down on

 U GRO Capital has availed liability through select government programs including
the Partial Guarantee Scheme and TLTRO 2.0

 The Company has issued its first set of commercial papers in July 2020 – 12-
month tenor with a face value of INR 10 crores

 The Company’s borrowing rates have come down considerably in the past 6
months, with an average rate at 10.5% as of June 30, 2020

 The Company remains highly liquid with over INR 300 crores of liquidity on the
balance sheet

Liability

 Liability book reached INR 387 crores as of the end of Q1 FY21, sourced from
multiple public & private sector banks in various forms including term loans,
NCDs and commercial papers

 In the period between March-July 2020, the Company has raised an incremental
INR 150 crores of sanctions, of which over INR 100 Cr of sanctions have not yet
been drawn down on

 U GRO Capital has availed liability through select government programs including
the Partial Guarantee Scheme and TLTRO 2.0

 The Company has issued its first set of commercial papers in July 2020 – 12-
month tenor with a face value of INR 10 crores

 The Company’s borrowing rates have come down considerably in the past 6
months, with an average rate at 10.5% as of June 30, 2020

 The Company remains highly liquid with over INR 300 crores of liquidity on the
balance sheet

Financial Performance

 The Company’s total income stands at Rs. 30.79 crores for Q1 FY21 with a PAT of
Rs. 3.73 crores and CRAR of 99.42%

 The net worth of the Company stands at Rs. 926.1 crores as of June 30, 2020 with
book value per share being INR 131.31

 The Company’s GNPA and NNPA figures stands at 1.02% and 0.57% respectively
Operational Parameters

 The GRO Partner network (DSAs) now stands at 393 partners, an 11% increase
compared to Q4 FY20

 A total of 177 employees have now been onboarded across nine branches:
Mumbai (Head Office), Delhi, Kolkata, Bangalore, Chennai, Hyderabad,
Ahmedabad, Jaipur and Pune

 Keeping in mind the social distancing norms, the Company has seamlessly
transitioned to a consolidated platform conducting Video PDs rather than the in-
person process, in turn, maintaining strict underwriting standards and not
jeopardizing the health of the customers or employees

 The Company has registered with CGTMSE, allowing 75% credit guarantee for
credit facilities of INR 2 crores and under for micro and small enterprises

 The Company has taken cost optimization measures during the COVID-19 period,
leading to significant savings on operating expenses
Operational Parameters

 The GRO Partner network (DSAs) now stands at 393 partners, an 11% increase
compared to Q4 FY20

 A total of 177 employees have now been onboarded across nine branches:
Mumbai (Head Office), Delhi, Kolkata, Bangalore, Chennai, Hyderabad,
Ahmedabad, Jaipur and Pune

 The Company has registered with CGTMSE, allowing 75% credit guarantee for
credit facilities of INR 2 crores and under for micro and small enterprises

 The Company has taken cost optimization measures during the COVID-19 period,
leading to significant savings on operating expenses

U GRO Capital, a BSE listed, technology-focused platform, today announced its
financial results for Q1 FY21. With technology and innovation being the backbone, U
GRO Capital strives towards bridging the SME lending gap. We observed the past few
months of lockdown as a critical opportunity to reflect, contemplate and work
towards enhancing the Company’s strategic fronts. This involved review of existing
processes and the use of technology to digitize underwriting processes and render
them contactless, to be able to address the requirement of MSMEs remotely in-line
with the new normal.

Commenting on the results, Mr. Shachindra Nath, Executive Chairman and
Managing Director of U GRO Capital stated, “Stepping into 2020, businesses were 150 crores from diverse sources, including under government schemes such as PGC
and TLTRO 2.0, and we have a strong pipeline in place to cater to our future liability
needs also. I believe that the worst is now behind us in the lending sector, and the
well-run firms will enjoy the opportunity to build their market share in the coming
months.”

Tag: Mr. Shachindra Nath