utkarsh voice · 2019-08-01 · utkarsh voice q2 [fy 15-16] : volume-7, issue-2 2 utkarsh had a...

UTKARSH VOICE Q2 [FY 15-16] : Volume-7, Issue-2

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Q2 FY 2015-16 Highlights

This quarter was marked very special in the journey of Utkarsh. The Reserve Bank of India

has granted ‘in-principle License’ of Small Finance Bank to Utkarsh on September 16, 2015.

The Company achieved a milestone of crossing `900 crore portfolio at the close of Q2. Mr.

Govind Singh, MD & CEO of the company acknowledged the contribution and support of

all employees, investors, directories, partners, and other stakeholder during the journey

of 6 years.

With the close of Q2 the JLG portfolio stood at ̀ 921.83 Mn with 7,76,353 lakh active clients,

the MEL portfolio was `55.71 Mn with a client base of 9,924 active clients and the Housing

Loan pilot has reached 22 clients with `0.48 Mn outstanding portfolio. The total portfolio

of the Company was `978.02 Mn at the close of Q2 FY 2015-16. The Company opened 27

new branches (26 JLG Branches & 1 MEL Branch) during the Q2 ended Sep 30, 2015.

Under the Credit Plus initiatives, the company continued its CSR activities and support to

unserved segment of the society. A blood donation Camp was also organized through

Samutkarsh Welfare Society.

Company’s Independent Director Mr. Tantra Narayan Thakur visited Varanasi office on Jul

1, 2015 and interacted with employees and provided necessary guidance and motivation.

In recognition of performance through Annual Performance Appraisal, the company sent

the 2nd

batch of 45 employees (representing operations and non-operations) for tour to

Chandigarh, Timber Trail (Parwanoo) and Kasauli (Himachal Pradesh) from on July 9, 2015

to July 13, 2015.

Grading and Rating –

ICRA upgraded the grading of Utkarsh to M1 (from M2+) indicating company’s

ability to manage its microfinance activities in a sustainable manner is the highest.

The strengths highlighted in the report are:

Utkarsh earning profile is good, (ROE of 11.14% in 2014 – 15 on higher capital

base post infusion) and supported by moderate operating expenses (7.25% as a

percentage of average managed advances) despite the relatively higher pace of

growth.


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Utkarsh had a diversified funding profile, with around 33 direct lenders and

increasing share of debt market instrument in the overall resource mix.

New products (Hosing Loans and Microenterprises Loans) maintaining the asset

quality indicators would be important from a grading perspective.

Strong investors profile, with IFC, Norwegian Microfinance Initiative (NMI) and

Aavishkaar Goodwell as the investors.

Experienced and professional management team.

Good MIS, Risk Management, Internal Audit and collection mechanisms

systems.

Large & diversified funder base as well as funding instruments.

Care has assigned ‘A-‘rating for company’s NCD rating. The strengths highlighted

in the report are:

Experienced promoters and management team.

Strong Investors base and comfortable capital adequacy ratio.

Good MIS, Risk Management, Internal Audit and collection mechanisms

systems.

Diversified resource base.

Healthy growth in loan portfolio.

Improvement in overall earnings and stable profitability.

Good asset quality.

Employee Speak “…”

“I joined Utkarsh Micro Finance Pvt. Ltd. as Trainee Credit Officer (TCO) in February

2014. With more than 16 months of my career at Utkarsh my efforts were

recognized by the management and I was promoted as Acting Branch Manager of

Kakarmatta branch. At Utkarsh I have got wonderful opportunity to learn and

develop myself professionally and personally as well.”

Excerpts from a talk with Ms. Divya Mishra, Acting Branch Manager - Kakarmatta, Varanasi.


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OPERATIONAL HIGHLIGHTS

The company further expanded in new geographies of its 9 operational States. The 9 states

being, Uttar Pradesh, Bihar, Jharkhand, Maharashtra, Madhya Pradesh, Delhi-NCR,

Uttarakhand, Himachal Pradesh and Haryana. The total districts being covered in 9 states

grew to 80.

The Branch Network expanded to 295 [277 JLG Operations Branches and 18 MEL

Operations Branches] for serving more than 7.76 lakh active client. At the close of Q2 FY

2015-16, the JLG business stood at an outstanding of `9218.3 Mn, the Micro Enterprises

Loan business at `557.1 Mn and the Housing Loan business at `4.8 Mn, thereby making a

total portfolio of `9780.2 Mn.

A comparative summary of the operational highlights of the company is as below:

Particulars As on Sep 30, 2015

As on Mar 31, 2015

As on Sep 30, 2014

MICROFINANCE OUTREACH

No. of States 9 8 8

No. of Districts 80 65 55

Total No. of Branches 277 240 198

No. of Branches in Uttar Pradesh 94 87 83

No. of Branches in Bihar 89 77 61

No. of Branches in Maharashtra 30 26 16

No. of Branches in Madhya Pradesh 23 18 13

No. of Branches in Delhi - NCR 8 8 8

No. of Branches in Uttarakhand 13 13 12

No. of Branches in Himachal Pradesh 1 1 1

No. of Branches in Haryana 15 9 4

No of Branches in Jharkhand 4 - -

Total No. of Centers 48197 37,752 27,693

Total No. of Groups 202,391 152,206 109,177

Total No. of Members 840,493 639,753 454,886

Total No. of Clients 776,353 601,465 430,016

Total Disbursement – Cumulative ( in Mn) 24,124.9 17,663.9 12,617.5

Loan Outstanding ( in Mn) (Own+ Managed) 9,218.3 6,922.8 4,890.5

Total No. of Loan Disbursed 1,552,361 1,189,081 885,122

Total No. of Credit Officers 1,278 972 881

No. of Client Per Credit Officer 607 619 488

Repayment Rate (%) 99.8% 99.9% 99.9%

Par > 30 Days

No. of Clients 325 214 51

Amount ( In Mn) 3.02 1.81 0.43

MICRO ENTERPRISES LENDING

No. of States 4 4 3



Total No. of Loan Disbursed 11641 7,792 4,293


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Particulars As on Sep 30, 2015

As on Mar 31, 2015

As on Sep 30, 2014

MICRO ENTERPRISES LENDING…cont.

Total No. of Clients 9924 6,823 3,923

Total Disbursement – Cumulative ( in Mn) 816.0 502.3 258.5

Loan Outstanding ( in Mn) (Own +Managed) 557.1 358.1 186.0

No. of Relationship Officer (RO) 83 83 65

No. of Clients /RO 120 82 60

PAR > 30 Days

No. of Clients 426 87 10

Amount (In Mn) 18.60 3.71 0.46

AFFORDABLE HOUSING LOAN

No of States 2 - -

No. of Districts 2 - -

Total No of Branches 2 - -

Total no of Loan Disbursed 22 - -

Total No. of Clients 22 - -

Loan Outstanding (₹ in Mn) 4.8 - -

NATIONAL PENSION SYSTEM (NPS)

No. of States 2 2 2



No. of Accounts 34,143 34,015 29,494

Total Subscription-Cumulative ( in Mn) 10.51 10.24 5.78

EMPLOYEES

Operational Employees 2112 1619 1407

Total Employees 2282 1753 1511

EMPLOYEE DETAILS

Particulars As on Sep 30, ‘2015

As on Mar 31, ‘2015

JLG Operation 1892 1476

MEL Team 220 143

Support and Control Team 170 133

TOTAL 2,282 1,752

FINANCIAL PERFORMANCE

The Company achieved a PBT of `267.62 Mn for the FY 15-16. Important financial

parameters are as below:

Particulars As on Sep 30,

2015 (Unaudited) As on Mar 31, 2015 (Audited)

As on Sep 30, ‘2014 (Unaudited)

Income (` in Mn) 1081.91 1349.6 565.22

Expenses (` in Mn) 814.29 1084.8 478.18

Profit Before Tax (` in Mn) 267.62 264.8 87.04

Net Worth (` in Mn) 2372.74 2322.4 794.93


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Key indicators Q2 FY 2015-16

SOCIAL INTERVENTIONS (Credit Plus Activities) Health Initiatives

In order to provide primary health care to branches where medical facilities are limited,

Samutkarsh Welfare Services (SWS) has tied up with Ram Krishna Sewashram Hospital

Ojhala, Mirzapur and GV Meditech Group, Varanasi for operating Poly Clinic at 7 branches.

During polyclinic the beneficiaries are given free medical consultation and medicines every

fortnight. A total of 38 Poly Clinic Days were organized in Q2 FY 2015-16, benefiting 3312

patients.

The company also launched primary health care through Mobile Van facility in Kushinagar

Division. Till date 19 mobile van polyclinics were conducted and 3057 have benefitted from

these.

Financial Awareness (In association with IFC & Utkarsh) This project is presently being implemented in 9 Branches of UP & Bihar. Till Sep 30, 2015

a total of 14,236 members had registered for the training and 12514 members had

successfully completed the same.

(Swiss Capacity Building Facility (SCBF) – ACCION) This project was launched in May 2015, in 5 branches and till Sep 30, 2015 - 5130 members

had received financial literacy training.

Vocational Training – Agarbatti Rolling Project SWS provides vocational training to members for Agarbatti rolling. It also provides raw

material and market linkages to the members. In FY 15-16 419.5 kgs of Agarbatti had been

rolled by our clients and 330 kgs of raw Agarbatti and 206.5 kgs of scented Agarbatti had

been linked to the market.

Key Indicators As on Sep 30,

2015 (Unaudited) As on Mar 31, 2015 (Audited)

As on Sep 30, 2014 (Unaudited)

CRAR 26.01% 35.1% 16.42%

Operating Self Sufficiency (OSS) 134.2% 125.2% 119.5%

ROA 3.40% 2.6% 2.10%

ROE 14.46% 12.5% 13.72%

Debt Equity 3.32% 2.9 6.28%

Operating Expense Ratio 7.13% 7.7% 7.88%

Cost of Borrowing 13.99% 14.0% 14.08%

Repayment Rate 99.98% 99.9% 99.9%


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Success Stories – as clients speak “…”

Sheela Devi is an old widow lady residing in Aurai village of Mirzapur District, Uttar

Pradesh. Till 5 years back her life was running smoothly as her husband’s earning was

enough to manage the family of six which included her four children but unfortunately in

2010 her husband died in a road accident and she was left all alone with four little children.

She recalls her struggle days when she had nothing to eat and also not any source of

earnings. She faced tough time managing the livelihood of her family.

It was 3 years ago when Sheela

Devi met an official of Utkarsh who

motivated her to take up income

generating activity on her own by

utilizing her skills in Carpet making.

She became a member of a Joint

Liability Group at her village.

Standing on her own, she made the

best use of the credit facilities

extended by Utkarsh.

She took a loan of `15,000 and

purchased a frame machine for

carpet and rugs weaving. Slowly

she build up the business and

started living a decent living and

went for subsequent cycle loans for

giving a boost to her business.

Today she owns 20 frame machines

of weaving worth `2 lakh. Her

children also go to a good convent

school.

She is more confident now and

settled in her life. She is also giving

employment by engaging 10 labors.

She has constructed her two room

house and directly sells the

prepared Carpets to a well-known

outlet “Varanasi Carpet” and is able

to save `20,000 on a monthly basis.

Sheela Devi says that she would be always thankful to Utkarsh for providing a regular help

(especially at the time when she needed it the most). Further she says that the financial

help form Utkarsh has made her confident to live a better life taking care of all the family

needs.


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UTKARSH in NEWS


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Photo Gallery: UTKARSH ACTIVITIES

Client Meet at Urwa Bazar, Gorakhpur on August 08, 2015

Client Meet at Fatuha, Patna on September 03, 2015


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Blood Donation Camp, Varanasi on August 22, 2015

Celebrating an important Milestone

(RBI grants ‘In principle’ license of Small Finance Bank to Utkarsh)


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Your feedback is important to us. Please write to us at:

Manager, Corporate Communication, Utkarsh Micro Finance Private Ltd. S2/639-56, Varuna Vihar Colony, J.P. Mehta Road, Cant., Varanasi - 221002, Uttar Pradesh E-mail

ID [email protected] website www.utkarshmfi.com

SMART CAMPAIGN CLIENT PROTECTION CERTIFICATION Received by Company (represented by Mr. Ashwani Kumar, VP at Turin, Italy)

Company’s Independent Director Mr. Tantra Narayan Thakur addressing

Utkarsh employees at Varanasi Corporate Office

mailto:[email protected]

http://www.utkarshmfi.com/

utkarsh voice · 2019-08-01 · utkarsh voice q2 [fy 15-16] : volume-7, issue-2 2 utkarsh had a...

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