MD & CEO
I am pleased to be writing this message for the third year since Chaitanya became a part of the Navi Group. While the last two years have been challenging for the microfinance industry given contracting growth rates and the COVID-19 pandemic, “I am proud of our stellar performance in FY22. Chaitanya has stood out this year as one of the fastest growing NBFC-MFIs in the country:”
• Our AUM grew by 91% from ₹1,389 in FY21 to ₹2,654 crores in FY22;
• Our ROA grew from 2.1% in FY21 to 3% in FY22, despite COVID-19 related provisions;
• We expanded our geographical footprint, entering 3 large states (i.e. Tamil Nadu, Rajasthan & Gujarat). As a result, our portfolio concentration in our home state of Karnataka reduced from 40% in FY22 to 32% in FY23; and
• We posted the fastest growth amongst all NBFC-MFIs in the country while still maintaining industry-leading ROA and ROE.
We continue to set audacious goals for the upcoming year and hope to continue our expansion in a sustainable and profitable manner. This foundation will undoubtedly hold us in good stead for years to come. I remain confident about our future growth given the size of the opportunity and our proven track record of clinical execution. A substantial number of India’s rural low-income households still continue to rely on informal sources for their credit requirements and thus fall prey to high interest rates. This gives us a great opportunity to attract customers and further the cause of financial inclusion by extending credit at affordable rates. We continue to invest in technology and automation wherever possible to improve our operations. This year we’ve also made strides in lowering our cost of funds by leveraging our strong performance and the Navi group’s robust financial position. All of this growth has come on the back of consistently improving ratings (India Ratings assigned us an A/ Stable rating in May 2021).
I am proud of our stellar performance in FY22. Chaitanya has stood out this year as one of the fastest-growing NBFC-MFIs in the country. It is also encouraging to see that the RBI has made moves towards liberalising the sector. In March 2022, the RBI notified a new set of regulations which help level the playing field and simplify the compliance for all entities operating in the microfinance sector. Chaitanya is well placed to leverage these new regulations to increase profitability while still keeping our interest rates competitive. In conclusion, I would like to congratulate our senior management and employees across the country for successfully navigating a challenging year. We have always set ambitious targets and our teams have responded to the challenge with rigour and dedication. I would also like to thank our Board members for helping us maintain high standards of corporate governance while facilitating our goals. Here’s to an even more successful FY23.
Managing Director & CEO