Arohan Annual Report FY 20-21

and others. In such a situation, Arohan successfully explored other available options to raise additional funds. Special Liquidity Schemes from RBI and interventions from the Central Government such as Targeted Long-Term Repo Operation (TLTRO) and Partial Credit Guarantee Scheme (PCGS) provided much needed relief to overall market participants. Further, this increased the credit flow while keeping the interest rates on the lower side. During the year, Arohan raised INR 75 Cr under the TLTRO scheme and INR 775 Cr under the PCGS scheme from various Public Sector Undertaking (PSU) banks, including State Bank of India, Indian Bank, Bank of Baroda and Union Bank of India, to name a few. The repayment of the Non-Convertible Debentures (NCDs) issued under PCGS and TLTRO were structured in a way to enhance proper Asset Liability Management (ALM) of the Company. Arohan also raised longer tenure loans during the year to balance out comparatively shorter tenure PCGS funds, which has helped the Company to keep its average maturity tenure of borrowings at 33 months, well above the average maturity tenure of its lendings at 23 months. Keeping the rate of interest stable during the year in FY 2020-21, the Company drew funds of INR 5,136 Cr from various PSU as well as private lenders. Additionally, post September 2020, Arohan raised large credits from lenders like IDFC FIRST Bank, Axis Bank, NABARD etc, at attractive rates. Overall Arohan has working relationships with over 40 lenders as of March 2021. Some prominent relationships are with International Finance Corporation, State Bank of India, ICICI Bank, Axis Bank, IDFC First Bank along with Development Financial Institutions like SIDBI and NABARD. BORROWING MIX, AS ON 31.03.2021 Arohan successfully established new relationships with lenders such as Nabkisan Finance Limited, Kookmin Bank and the CDC Group in the FY 2020- 21. Further, Arohan managed to raise INR 168 Cr of equity from select investors, including the Promoter group. This augmented the Company’s Tier-I capital and helped in maintaining Capital Adequacy Ratio at comfortable levels. Management Discussion & Analysis 51