PRESENTED BY: REPORTING TO:

PAVAN KUMAR GAUTAM MR. SUDHIR PANDEY

SAP:23175486 DM- ALLAHABAD
MT- ALLAHABAD CV & CE VERTICAL
MOB: 7800830003

Confidential 1
 Product Range
AD

LMV

CV & CE

2W & 3W Wheeler

SME

MIBL

Tractor & FES

Re-Finance

Fixed Deposit

Mutual Fund

Confidential 2
 Commercial vehicle loan
Commercial vehicle loan is for all types of Goods and Passenger carrying
vehicles
COMMERCIAL
VEHICLE

GOODS PASSENGER
VEHICLE VEHICLE

SCV O-1.5 BUSES

TONN

LCV 1.5-7
TRAVELLER
TONN

HCV 14 &
ABOVE
TONN

Confidential 3
 Scope Of Financing CV Loan In UP
66-kilometre long expressway between Delhi and Meerut on NH 58 has been approved for
consideration by the Ministry of Road Transport & Highways

In the 2015-16 budget, state government announced plans to invest US$ 497.5 million for the
construction of the Lucknow-Agra expressway

As per budget 2015-16, for construction of roads and bridges and implementation of special
schemes for Purvanchal and Bundelkhand, the Government of Uttar Pradesh announced plans to
invest US$ 2.02 billion

For widening single and 1.5 lane state highways, the Government of Uttar Pradesh proposed to
invest US$ 111.97 million in 2015-16

Under JNNURM scheme, the Government of Uttar Pradesh proposed an investment of US$
132.71 million for infrastructure development in urban area

Government of Uttar Pradesh announced plans to invest US$ 61.38 million for the strengthening
of main roads in rural areas and other roads in the state

Confidential 4
 Customer Borrowing CV Loan

Fruits & Vegetables Gritt, Sand, Coal

Bus Operators
(LCV) (M&HCV)

Brick kiln Owners Crusher Plant Owners Schools

Re-Finance Goods Transporters Oil Tankers

Confidential 5
 Business Process

Financer Business Executives Field Investigation

Documentation &
Delivery Order Emlap & CAM
BHHD

Confidential 6
 Sources of Business

Existing Data Base MIBL Team DMT

BE & Portfolio Managers

Dealer Collection Boy
networking

Customer References

Confidential 7
 Disbursement Amount
Invoice Amount
80000000
60000000
40000000
20000000
0
July
Aug
Sep
Oct
Nov
Dec

July Aug Sep Oct Nov Dec

July-Dec16 29669702 25336554 35944648 37810506 44579697 60020000
July-Dec15 41698046 44082615 21456396 47450106 50208085 25210875

Trend Analysis (fig in crore)

July-Dec16 July-Dec15

4.74 5.02
4.16 4.4 4.45
3.59 3.78
2.96
2.53 2.52
2.14

July Aug Sep Oct Nov Dec

Confidential 8
 Pitched ETR Customers For Re-Finance

Confidential 9
 Re-Finance
40
35
30
25 In month of Oct 16, 2 Cases
20
of re-finance was closed by
15
10 me
5
0
July Aug Sep Oct Nov Dec G.Total
July-Dec 16 1 2 1 7 7 1 19
July-Dec 15 6 12 6 6 4 3 37

Trend Analysis
40
35
30
25
20
15
10
5
0
July Aug Sep Oct Nov Dec G.Total
July-Dec 15 6 12 6 6 4 3 37
July-Dec 16 1 2 1 7 7 1 19

Confidential 10
 MMFSL Market Share In JCB
JCB (Backhoe Loader) JCB (Heavy Line)
Total Financed by Market
Months Total Sales Financed by MMFSL Market Share Months
Sales MMFSL Share
Jan-16 16 3 18.75% Jan-16 2 2 100.00%
Feb-16 15 1 6.67% Feb-16 2 1 50.00%
Mar-16 10 0 0.00% Mar-16 3 0 0.00%
Apr-16 15 1 6.67% Apr-16 2 0 0.00%
May-16 18 2 11.11% May-16 1 1 100.00%
Jun-16 13 1 7.69% Jun-16 1 1 100.00%
Jul-16 15 2 13.33% Jul-16 3 0 0.00%
Aug-16 5 1 20.00% Aug-16 2 0 0.00%
Sep-16 14 3 21.43% Sep-16 3 1 33.33%
Oct-16 22 3 Oct-16 4 1 25.00%
13.64%
Nov-16 15 4 Nov-16 3 1 33.33%
26.67%
Dec-16 9 3 Dec-17 3 1 33.33%
33.33%
G.Total 167 24 14.37% G.Total 29 9 31.03%

Reduced TAT to 5 days by proper follow up of cases

Created check list of all the documents required while DO and pinned it on the soft
board of BE

Confidential 11
 MMFSL Market Share In Eicher
Market Increase/Decrease in each month
Particulars April MayJune July Aug Sep Oct Nov Dec Sum Share April 5.41%
Canara Bank 0 0 1 0 0 0 0 1 0.62% May 0.00%
Central Bank of India 1 0 0 0 0 0 0 1 0.62% June 11.11%
July 21.05%
Cholamandalam Invetment 4 5 6 2 1 2 4 2 3 29 18.01% August 0.00%
Sep 25.00%
Citi Corp 1 0 0 0 0 0 0 1 0.62%
Oct 34.78%
HDFC Bank Ltd. 4 1 1 2 0 0 2 1 3 14 8.70% Nov 58.33%
Indusind Bank 2 1 2 1 0 1 3 2 10 6.21% Dec 31.25%
Kotak Mahindra bank Ltd. 0 0 2 1 0 2 1 1 1 8 4.97%
Mahindra and Mahindra 2 0 3 4 0 4 8 7 5 33 20.50% Vijaya Bank Syndicate
Union Bank Canara Bank Central Bank
1% Of India
Bank 1% of India
SBI 6 1 5 1 1 1 1 1 2 19 11.80% South Indian 1% 3% 1%
Bank Others
Self Financed 3 1 1 3 0 1 0 9 5.59%
6%
Shri Ram Transport & Shri 1%
Ram
Transport Cholamanda
Finance 11 1 4 1 0 0 0 17 10.56% lam
& Finance
South Indian Bank 2 0 0 0 0 0 0 2 1.24% Invetment Citi Corp
11%
18% 1%
Vijaya Bank 0 0 1 0 0 0 0 1 0.62%
HDFC Bank
Syndicate Bank 0 0 0 1 0 0 0 1 1 0.62% Ltd.
Union Bank Of India 0 0 0 3 0 2 0 5 3.11% 9%
Self
Others 1 0 1 0 1 3 4 10 6.21%
Financed SBI
G.Total 37 10 27 19 3 16 23 12 16 161 100.00% 6% Indusind
12%
Bank
Mahindra 6%
and Kotak
Mahindra Mahindra
20% bank Ltd.
5%
Confidential 12
 Leads Generated From Jasra & Jari Mandi

Confidential 13
 Strategies Implemented
Made Continuous visit to the dealer office
Made friendly behavior with all of the salesperson
Opened the dealer & salesman pay out
Personally tracked each of the cases by salesperson & business executives
Pushed our BE to close the case as early as possible
This reduced the TAT
Resolved issue of dealer payment by consulting continuously with branch
accountant
Updated PDD early for smooth payout to salesman
Cross checked each of the completed files of BE to minimize the error, which
helped in fast processing of DO
Conducted activities with DMT along with Eicher salesperson to generate leads,
and majority of cases where converted

Confidential 14
 Leads Generated For HCV & CE

Confidential 15
 Customer Retention

Retention Percentage
Retention Ratio Unable to Retain

Customer retention in No.

19% 1100

355
180 168
175
125
52 32 13
81%

Confidential 16
 Recommendation
Staff should be adequately trained to encourage face to face dealing

Staff should be friendly and approachable

Customers needs should be anticipated in advance so that they can be helped out in
a better way

Treat your customers like your friends and they'll always come back

Get in touch with ETR customers, drop greeting messages to them on their mobiles

Satisfied customer will spread positive word of mouth

Honour your promises

Confidential 17
 ED Allahabad Cluster July-Dec 16
ED July-Dec 16
30.00%

25.00%

20.00%

15.00%

10.00%
Proper follow
5.00%

0.00%
July August Sep Oct Nov Dec Develop habit of customers to pay
ED 23.65% 26.03% 28.21% 22.31% 22.83% 16.25% their debt on time
Trend Analysis of ED
30.00% Visit each customers house despite of
25.00% fact they are paying on time
20.00%
15.00% Call and leave reminder in advance to
10.00% customers of their due date
5.00%
0.00%
July Aug Sep Oct Nov Dec
Series1 23.65% 26.03% 28.21% 22.31% 22.83% 16.25%

Confidential 18
 Suggestions
Requirement of better software
Lack of uniformity in data
Give CIBIL rights to Cluster Manager
Give training to BE when some new thing is launched
Motivation to BE
Lack of master data, this can be done by linking AADHAR No of
customers
Separate accountant for DO
Organize Transporters meet with help of DMT

Confidential 19
 Collection

SOFT
0-1 AGE SOFT BUCKET-Are Easily Recovered, Customers Faults Due
To Technical Issues Like Pdc & Ecs or lack of follow up
HARD BUCKET-Regular Visits & Calling To Customers
NPA Helps To Recover Money, Customers Faults Due To Genuine
HARD Reasons or he is intentional defaulter
4 AND
2-3 AGE
ABOVE NPA- If 4 instalment are due of customer then it is NPA.

KEY LEARNINGS
Due Dates Are 1st, 5th,10th,15th,20th,25th Of Every Month
Afc To Be Charged At 36% P.A Or 3% P.M
Cheque Bounce Charges Are Rs .500
Travel Expenses Of Executive Are Rs.500
Mode of Payment are ACH, PDC, Cash

Confidential 20
 Collection Efficiency Of Allahabad Branch
Month CE July-Dec15 (%) CE July-Dec16 (%)
July 89.46 84.42
Aug 86.8 88.39
Sep 94.14 88.58
Oct 91.03 86.86
Nov 86.3 76.51
Dec 93.8 93.78

Trend Analysis
100
90
80
70
60
50
40
30
20
10
0
July Aug Sep Oct Nov Dec
CE July-Dec15 (%) 89.46 86.8 94.14 91.03 86.3 93.8
CE July-Dec16 (%) 84.42 88.39 88.58 86.86 76.51 93.78

Confidential 21
 Collection Efficiency Of Allahabad CV Cluster
CE Comparision
120.00%

100.00%

80.00%

60.00%

40.00%

20.00%

0.00%
July August Sep Oct Nov Dec
July-Dec 16 79.82% 77.19% 84.75% 90.96% 102.00% 101%
July-Dec 15 95.89% 90.04% 95.75% 89.75% 87.40% 100.01%

Trend Analysis
120.00%

100.00%

80.00%

60.00%

40.00%

20.00%

0.00%
July August Sep Oct Nov Dec
CE 15 95.89% 90.04% 95.75% 89.75% 87.40% 100.01%
CE 16 79.82% 77.19% 84.75% 90.96% 102.00% 101%

Confidential 22
 Cases In Each Bucket At Allahabad CV Cluster
BRNDES 0 1 2 3 4 5 6 7 8 9 11 12 14 15 16 18 19 21 22 25 26 32 34 40
ALLAHABAD 71 5 7 1 4 1 2 1 2 3 1
BANDA 1 1 1 1 1 1
BHADOHI 6 2 2 1 2 2 1 1 1 1 1
JOUNPUR 115 15 10 9 7 2 3 3 2 1 1 1 1 1
KARWI 6 4 2 1 1
KAUSHAMBI 10 1 1
KERAKAT 4
MACHHLISHAHR 1 1 1
MARIYAHU 4 1 1
NAINI 24 8 6 3 7 1 1 1 1 1
PHULPUR 1 1 1 1 1
PRATAPGARH 11 3 4 1 1
SHAHGANJ 21 5 3 1 1 1
ALLD CLUSTER Total 273 44 34 18 22 8 7 8 5 3 6 2 1 1 1 1 2 2 1 1 1 1 1 1

273

44
34
18 22
8 7 8 5 3 6 2 1 1 1 1 2 2 1 1 1 1 1 1

0 1 2 3 4 5 6 7 8 9 11 12 14 15 16 18 19 21 22 25 26 32 34 40

Confidential 23
 Calling To Zero Age Unpaid Customers

Confidential 24
 Cases Visited
Name Visited Result Insatalements Assets/Model

Samrjeet Singh
2 bucket Reverse to Zero bucket 59374 LPT3118
(Sankargarh)

Amarpal Singh
1 bucket Reversed to Zero bucket 65892 LPT3118
(Sankargarh)
Eicher 10.75 Scool
Laurel School 5 4 37974
Bus
Cease (currently in 9
Vimal Diwadi (Jhalwa) 5 34027 Ashok Leyland 1616
bucket

Jaunpur
Ashutosh 18 22 63580 TATA LPK 2518 TC
Vijay Bahadur Singh 3 3 63000 JCB RE-FINANCE

Confidential 25
 Amount In Each Bucket
Amount in CD, OD, NPA
1.2E+09

1E+09

800000000

600000000

400000000

200000000

0
CD OD NPA
Amount in CD, OD, NPA 1132810879 365243423 246087081
Amount In Each Bucket
1.4E+09
1.2E+09
1E+09
800000000
600000000
400000000
200000000
0
Soft Bucket Hard Bucket NPA
Amount 1306341919 191712383 246087081

Confidential 26
 Provisioning By Age

Assignment of NPA 12-23 Aging NPA

Contract
4-11 Aging 50% of 24 Aging & Above
10% of FA Outstanding
10% of Amount 100% of
Outstanding Outstanding
Amount Amount

0 Age NPA

Confidential 27
 NPA of Allahabad Cluster
BRANCHES CASES
Allahabad 10
Banda 3
Bhadohi 6
Jounpur 18
Karwi 1
Kaushambi 5
Naini 3
20

18

16

14

12

10

0
ALLAHABAD BANDA BHADOHI JOUNPUR KARWI KAUSHAMBI NAINI
NPA 10 3 6 18 1 5 3

Confidential 28
 Suggestions
Due Dates must be 5, 10 & 15
Swap machine required in branch at urgent basis
If Contract is above 4 age cease the asset
Focus more on ACH mode of payment
Closely monitor flow of contracts in each bucket
Collect CD+ 1OD, CD+2 OD

Confidential 29
 PRESENTED BY:- REPORTING TO:-
PAVAN KUMAR GAUTAM Mr. SUDHIR PANDEY
SAP:23175486 DM- ALLAHABAD
MT- ALLAHABAD CV & CE VERTICAL

Confidential 30
 Working Capital is the capital available for conducting day-to-day operations of
business that consists of current assets and current liabilities

Inventories Creditors
Cash Bank Overdrafts
Short Term Receivables
Bills Receivables/Debtors

Current Assets Current

Liabilities

NET WORKING CAPITAL = CURRENT ASSETS CURRENT

LIABILITIES

Confidential 31
 Kinds of Working Capital

WORKING CAPITAL

BASIS OF BASIS OF
CONCEPT TIME

Gross Net Permanent Temporary

Working Working / Fixed / Variable
Capital Capital WC WC

Seasonal Special
WC WC
Regular Reserve
WC WC

Confidential 32
 Scope of Working Capital Finance

Every fleet owner,

transporter,
We are organized
businessman
India is going to a money lenders Very few NBFC
having even a
become cashless and thus can offer give working
single vehicle has
economy economical capital loan
to register
interest rate
themselves and
pay tax

Confidential 33
 Target Customer
Small & Large Fleet Operators

Owners & Manufacturers of Brick kiln

Building Material suppliers

Register vegetable shop owner of Mandi having Addhat

Schools having large fleets of buses

Owners of Crusher Plant

Confidential 34
 Significance of Working Capital

After 12 months fleet owners need money for fitness,

insurance, permit.
Fleet Owners & Schools
For maintenance and repairs, wages to drivers, to
tackle monsoon season

Addhat Owners To manage his grains and vegetables in stock

Brick Kiln Owners & To pay their workers and manage their expenses in
Manufacturers rainy season

Confidential 35
 Competitor Analysis

Interest rate Interest rate Interest Rate Interest Rate

[12.5% [18.75% [11.49% - [11.99%
19.50%] 19.75%] 18.49%] 19%]

Processing Fee Processing Processing Fees Processing Fees

[one time fee] Fee [2%] [2.5%] [.25% - 2.5%]

Loan Amount Loan Amount Loan Amount

[25 lak max] Loan Amount
[20 lak max] [25 lak max] [15 lak max

Tenure [1 to 5 Tenure [1 to 3 Tenure [1 to 5 Tenure [1 to 5

years] years] years] year]

Confidential 36
 Procedure For Sanctioning Loan

Ratio Analysis

Working Capital ratio = Current Assets/Current Liabilities [2:1]

Quick Ratio = Cash/Current Liabilities [1:1]
Interest Coverage Ratio= EBIT/Interest
Turnover ratio
Net Profit ratio= Net Profit/ Net Sales *100
Cash Conversion Cycle

Confidential 37
 Cash Conversion Cycle

Debtors or Receivable turnover = Credit Sales/Accounts receivable or Debtors

Days receivable turnover ratio = Accounts receivable/Sales/365

Creditors or Payable turnover = Purchase/Accounts payable

Days payable turnover ratio = Purchase/Accounts payable/365

Cash conversion cycle = Days receivables turnover ratio-Days payable turnout ratio

Confidential 38
 Methods of Funding

1. Funding on GAP [CA-CL] of 75%

2. 25% of PAT

3. 20% of Revenu e

Confidential 39
 Scheme of Loan
Criteria 1 (C1)
New Customer for MMFSL

Eligibility
Must have financial statement for last 2 years
Customer must pay Service Tax or VAT
Property proof or movable asset on his name
Experience of his business for last 2 years
Both Co - Applicant & Guarantor of the same field
Work Order, Society Paper, Adhhat Copy, Firm or Partnership Copy

Ticket Size
3 Lakh Max.

Confidential 40
 New Customer

Confidential 41
 Scheme of Loan
Criteria 2 (C2)
Existing Customer for MMFSL
Eligibility
Must have financial statement for last 2 years
Must have GTR or ETR
His existing asset with or new asset will be hypothecated with MMFSL
Guarantor of the same field
Work Order, Society Paper, Adhhat Copy, Firm or Partnership Copy
Special Window
Existing Customer can withdraw any time up to 50,000 Rs with any
documentation

Ticket Size
4 Lakh Max

Confidential 42
 Existing Customer

Confidential 43
 Scheme of Loan
Criteria 3 (C3)
Customer with no financials

Eligibility
Average bank balance must not be less than 2 times of instalments
Must have GTR or ETR track of repayment from somewhere
Must have at least one free commercial vehicle or passenger vehicle
His asset will be hypothecated with MMFSL
Property proof or movable asset on his name
Experience of his business for last 2 years
Guarantor of the same field & Co-Applicant
Work Order, Society Paper, Adhhat Copy, Firm or Partnership Copy

Ticket Size
2.5 Lakh Max

Confidential 44
 Customer Without Financials

Confidential 45
 Loan Details
New Customer (C1) Existing Customer (C2) Customer Without Financials (C3)
LOAN AMOUNT: Rs 3 Lakh Max LOAN AMOUNT: Rs 4 Lakh Max LOAN AMOUNT: Rs 2.5 Lakh Max

IRR: 18% IRR: 17.38% IRR: 19.45%

FLAT RATE: 14.85% Flat FLAT RATE: 13.55% Flat FLAT RATE: 16.10% Flat

INSTALLMENT: Monthly (for a INSTALLMENT: Monthly (for a maximum INSTALLMENT: Monthly (for a maximum
maximum tenure of 12/15 months) tenure of 12/15 months) tenure of 12/15 months)

EMI: Rs 29,641 EMI: Rs 32,087 EMI: Rs 25,026

SERVICE CHARGE: 0.50% of FA SERVICE CHARGE: 0.50% of FA SERVICE CHARGE: 0.50% of FA

DOCUMENTATION: 1500 Rs. DOCUMENTATION: 1500 Rs. DOCUMENTATION: 1500 Rs.

ADDITIONAL CHAREGES: 1000 ADDITIONAL CHAREGES: 1000 ADDITIONAL CHAREGES: 1000

IRR 18% IRR 17.38% IRR 19.45%

C1 C2 C3
FR 14.85% FR 13.55% FR 16.10%

Confidential 46
 Legal Aspects

HYPOTHECATION

Hypothecation in name of MMFSL of free LCV, HCV, CE against the offered loan

LIEN

Lien is the right of a creditor to retain in his possession the goods and securities
owned by the debtor, but has no right to sell the goods and securities so retained.

DEPOSIT OF SECURITY CHEQUE

Confidential 47
 Benefits to Company
MLS

Service Charge of 0.50% without any deviation

Documentation Charges

Money lended for short period of time

High yield

Customer Retention

Few NBFC are involved, therefore high growth potential

All ACH

Confidential 48
 Risk to Company
Scenario of Economy
Trade restrictions
Government policies
Absence of loan review mechanism
Deficiencies in loan policies/ administration
Damage of Collateral/Hypothecated asset
Excessive dependence on collateral without ascertaining its quality/
reliability
Co. is unknown to the conduct of the borrower with other lending firms and
thus not in the position to take preventive steps.

Confidential 49
 Promotional & Marketing Strategies

Attach an extra
Call & Pitch to ETR Co-ordinate with MIBL
agreement of WC with
customers team
existing agreement

Provide a copy with

checklist of documents
Advertise on website & Conduct activites with
required to customer
in newspaper DMT team
with offer letter of
current loan

Co-ordinate with AD &

Promotion Of New
LMV team, to inform
Product By Collection &
their business class
BE
customers about WCF

Confidential 50
Confidential 51