Fusion Finance Limited (formerly Fusion Micro Finance Limited) has issued a postal ballot notice to seek shareholder approval for significant changes in its corporate structure and leadership. The company is proposing amendments to its Articles of Association and the appointment of a new Managing Director.

Key Proposals

1. Amendments to Articles of Association

   • Removal of founder promoter director nomination rights
   • Changes in board composition

2. Appointment of Managing Director

   • Seeking approval for appointing Sanjay Garyali as Managing Director

Voting Details

Financial Context

While Fusion Finance seeks these corporate governance changes, it's important to note the financial context:

Income Statement Highlights

Balance Sheet Highlights

The financial data reveals that Fusion Finance has faced significant challenges, with a substantial decline in profitability and a reduction in its balance sheet size.

Implications

1. Governance Restructuring: The removal of founder promoter nomination rights suggests a shift in the company's governance approach, potentially aligning with broader shareholder interests.

2. Leadership Transition: The proposed appointment of Sanjay Garyali as Managing Director indicates the company's strategy to bring in new leadership.

3. Financial Recovery Focus: Given the significant financial losses, these corporate actions may be part of a broader strategy to restructure operations and improve financial performance.

Shareholders will have the opportunity to vote on these crucial matters, which could significantly impact the company's future direction and governance structure. The outcome of this postal ballot will be closely watched by investors and market observers alike.

Fusion Finance Limited, a leading Non-Banking Financial Company-Microfinance Institution (NBFC-MFI), has reaffirmed its commitment to Bihar's microfinance sector during a recent media roundtable in Patna. The company's Managing Director and CEO highlighted Bihar's strategic importance in India's microfinance landscape and outlined the company's plans for expansion in the state.

Strong Presence in Bihar

Fusion Finance has established a robust presence in Bihar, as evidenced by the following key metrics:

The company's strong collection efficiency of 98.81% demonstrates the resilience of its operations and the quality of its loan portfolio in the state.

Strategic Importance of Bihar

Bihar continues to be a crucial market for Fusion Finance, driven by several factors:

1. Expanding rural livelihood opportunities
2. Rising financial awareness
3. Strong demand for small-ticket credit among low-income households and micro-entrepreneurs

The state's credit landscape is evolving rapidly, characterized by:

• Deeper formalization of financial services
• Wider adoption of digital processes
• A shift towards responsible and data-backed lending practices

Future Plans and Digital Initiatives

Fusion Finance has outlined several strategic initiatives to strengthen its position in Bihar:

1. Expansion of Services: The company plans to deepen its presence in the state, focusing on high-potential regions through:

   • Expansion of microfinance offerings
   • Growth in secured MSME loans

2. Digital Solutions: Scaling up digital capabilities to enhance customer experience and improve asset quality, including:

   • eKYC implementation
   • API-based credit checks
   • Real-time monitoring tools

These initiatives aim to support faster processing, seamless cashless disbursements, and improved operational efficiency.

Nationwide Presence

While Bihar remains a key focus area, Fusion Finance has a significant national footprint:

The company's strong performance in Bihar, coupled with its nationwide expansion, positions Fusion Finance as a key player in India's microfinance sector. By balancing growth with prudent risk management and leveraging digital solutions, the company aims to continue its mission of financial inclusion while maintaining a high-quality loan portfolio.