UTKARSH VOICE Q3 [FY 14-15] : Volume-3, Issue-5

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Quarter Highlights

The Quarter was marked with events like 5 years journey celebrations with Corporate and

Annual Events, Inauguration of Corporate Office, Festival Celebrations, Infusion of Equity

from new investors (CDC and LOK Capital) and as well as existing investors .

Along with all business activities, the quarter was also marked special with a new

incumbent in the Senior Management of the Company.

Employee Speak “…”

“For nearly 4 years, I am working at Utkarsh. I learnt many work philosophy and ethics

here. The company not only provides a challenging environment for a better career but

also shapes us as a responsible individual with integrity. I learnt how to serve

wholeheartedly, creating a sense of comfort in working together and to support each other

when facing job challenges. I like the way Utkarsh provides platforms for social activities.

Thanks to Utkarsh Team for all the opportunities given to work as a family and grow

together. “

(Excerpts from the talk with Mr. Tapi Bhushan Singh, Chief Manager - Training, Varanasi.)

New Incumbent in the Senior Management

Ms. Shruti Agarwalla has joined the Company as Head - Corporate Social Responsibility

to shape the Credit Plus activities of the organization.

She is an Economics (Honors) from Delhi University. Prior to joining Utkarsh she was

working as an entrepreneur over a period of 14 years in Varanasi and adjoining areas. She

was involved in manufacturing and FMCG distribution business. She has handled diverse

business areas including designing (bringing design from paper to fabric), production,

manufacturing, distribution and book keeping. She has also worked for 1 year as a web

designer and content manager with a web-solution company in Delhi.

Inauguration of Utkarsh Corporate Office

S – 24 / 1 – 2, First Floor, Mahavir Nagar, Orderly Bazar, Near Mahavir Mandir, Varanasi,

Uttar Pradesh – 221002

UTKARSH VOICE Q3 [FY 14-15] : Volume-3, Issue-5

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Infusion of Equity Capital in Utkarsh In Q3, Utkarsh concluded an equity investment of INR 126.00 core. Following new

investors participated in the rounds:

1. CDC (Commonwealth Development Corporation) - Founded in 1948, CDC is the

UK's Development Finance Institution (DFI) wholly owned by the UK Government's

Department for International Development (DFID). It is the world's oldest DFI with a

history of making successful investments in businesses which have become

industry leaders thereby having enormous impact on the private sector in their

country and region as well as improving the lives of many, many individuals. CDC's

mission is to support the building of businesses throughout Africa and South Asia,

to create jobs and make a lasting difference to people's lives in some of the world's

poorest places.

2. Lok Capital - The Lok Capital initiative was launched at the end of 2000 with the

support of a grant from the Rockefeller Foundation. Lok Capital means People's

Capital. Lok Capital defines itself as a hands-on financial investor with social

performance goals and standards, dedicated to promoting financial and social

inclusion through all its activities. India was chosen as the Funds' first market for

the Lok Capital initiative for two reasons. First, schemes intended to improve access

to basic services for the poor have not proven to be greatly successful in India.

There exists enormous potential for delivering commercially viable solutions to

urban and rural poor. Second, the Lok Capital team has a deep understanding and

working knowledge of India, including its complex regulatory environment and

entrepreneurial culture. Lok Capital manages two Bop funds with over $85 Mn

under management. The funds are the central entity of the Lok group structure.

All the existing investors detailed below, participated in the round.

1. Aavishkaar Goodwell India Microfinance Development Company II Limited.

2. International Finance Corporation (IFC).

3. Norwegian Microfinance Initiative (NMI).

This reflects high level of and Confidence shown by the existing investors in the Company

and its management .With this infusion, the Net Worth of the company has crossed INR

215.00 core.

Operational Highlights

The company further expanded in new geographies of its 8 operational States. The 8 states

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

Himachal Pradesh and Haryana. The total districts being covered in 8 states grew to 58.

The Branch Network expanded to 224 [213 JLG Operations Branches and 11 MEL

Operations Branches] for serving 5, 04,567 clients. At the close of Q3 FY 2014-15, the JLG

business stood at an outstanding of INR 5617.9 Mn and the Micro Enterprise Loan at INR

240.2 Mn, thereby making a total portfolio of INR 5858.1 Mn. A comparative summary of

the operational highlights of the company is as below:

UTKARSH VOICE Q3 [FY 14-15] : Volume-3, Issue-5

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Particulars As on Dec.

31, 2014 As on Mar.

31, 2014 As on Dec.

31, 2013 MICROFINANCE OUTREACH

No. of States 8 8 6

No. of Districts 58 40 31

Total No. of Branches 213 142 120

No. of Branches in Uttar Pradesh 86 74 69

No. of Branches in Bihar 67 39 33

No. of Branches in Maharashtra 18 4 -

No. of Branches in Madhya Pradesh 14 8 6

No. of Branches in Delhi - NCR 8 8 6

No. of Branches in Uttarakhand 13 7 5

No. of Branches in Himachal Pradesh 1 1 1

No. of Branches in Haryana 6 1 -

Total No. of Centers 32,131 20,476 17,789

Total No. of Groups 127,703 80,181 64,556

Total No. of Members 530,088 337,543 293,790

Total No. of Clients 499,619 317,900 272,534

Total Disbursement – Cumulative ( in Mn) 14,726 8,999 7,413

Loan Outstanding ( in Mn) (Own+ Managed) 5,618 3,436 2,737

Total No. of Loan Disbursed 1,012,650 664,219 568,288

Total No. of Credit Officers 926 575 415

No. of Client Per Credit Officer 540 533 657

On Time Repayment Rate (%) 99.9% 100% 100%

Par > 30 Days

No. of Clients 137 15 14

Amount (In Mn) 1.30 0.21 0.19

MICRO ENTERPRISES LENDING

No. of States 3 3 3

No. of Districts 10 9 7

Total No. of Branches 11 9 7

Total No. of Loan Disbursed 5,545 2,564 1,615

Total No. of Clients 4,948 2,415 1,537

Total Disbursement – Cumulative ( in Mn) 342.5 149.0 92.20

Loan Outstanding ( in Mn) (Own +Managed) 240.2 120.3 76.41

No. of Relationship Officer (RO) 81 43 39

No. of Clients /RO 61 56 39

PAR > 30 Days

No. of Clients 18 1 1

Amount (In Mn) 0.77 0.01 0.0

NATIONAL PENSION SYSTEM (NPS)

No. of States 2 2 2

No. of Districts 13 7 7

Total No. of Branches 53 41 41

No. of Accounts 32,487 1,340 9,314

Total Subscription-Cumulative ( in Mn) 7.23 3.01 1.57

STAFF

Operational Staff 1,480 898 714

Total Staff 1,595 1,032 826

UTKARSH VOICE Q3 [FY 14-15] : Volume-3, Issue-5

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EMPLOYEE DETAIL:

Particulars As on Dec.

31, ‘14 As on Sep.

31, ’14 JLG Operation 1355 1292

MEL Team 118 100

Support and Control Team 122 119

TOTAL 1595 1511

SOCIAL INTERVENTIONS (Credit plus Activities) Health Initiatives

In order to provide low cost medical facility, Samutkarsh Welfare Services (SWS) has tied

up with Ram Krishna Sewashram Hospital Ojhala, Mirzapur and GV Meditech Group,

Varanasi for operating Poly Clinic at 5 branches. This has been done to provide free

medical facilities to the members.

The Poly Clinic opens for the customers of Utkarsh for medical treatment and meditation

at fortnightly intervals. A total of 25 Poly Clinic Days were organized in Q3 FY 2014-15,

benefiting 1487 patients. Company plans to expand this initiative in many more branches.

Financial Awareness (In association with ACCION) During Q3, the company organized training program on Financial Awareness for the

clients. The training had 7 modules on financial management.

Organized through 8 Branches, the training witnessed a footfall of 5079 clients. By Dec 31,

2014, a total of 4,136 clients completed all their training modules under financial

awareness.

Solar Light Project The Company started pilot of Solar Light Project from two branches – Harahua (Varanasi)

and Chandwak (Jaunpur) in March 2014. Till close of Q3 FY 2014-15, the project has been

expanded to 10 branches in Uttar Pradesh and Bihar.

The Solar Combo, Single Sunking Pro and Pro 2 products have been well received by 4632

clients by way of Solar Loans.

Vocational Training – Agarbatti Rolling Project SWS is providing continuous training on incense stick production in 20 villages of Harahua

Block of Varanasi district. Total production of raw Agarbatti till Dec. 2014 was 4,718 kg and

that of scented Agarbatti was 740 kg. Moreover, 4,160 kg of raw Agarbatti and 581 kg of

scented Agarbatti produced so far by the members were linked to the market.

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Success Stories – as clients speak “…” Meera, an old lady from a village of Varanasi, recalls her struggle days when she had to

just manage with rice and salt for meals. She had sent her children to her grandmother, as

she was not economically strong even to feed them properly. Husband’s irregular daily

wage could not be enough and she did not have any other means to make both ends meet.

Her story is like most of the poor women’s story who struggle daily for survival.

One day she came to know about Utkarsh Micro Finance providing small loans; through a

lady in her village. After interacting with a Credit Officer of Utkarsh, she joined a Joint

Liability Group. Standing on her own, she made the best use of the credit facilities

extended by Utkarsh.

With a loan of INR

12,000 she purchased a

paper perforation

machine. Slowly she

build up the business

and started having a

decent living.

She brought her

children back with her.

She went for

subsequent loan cycle

for giving a boost to her

business.

Today she own a paper

cutting and punching

machine worth about

INR 1 lakh. Her children

now study in a good

school.

She does not stop giving

thanks to Utkarsh and says

there were days when she had

nothing to eat or make her

children go to school but with the initial and regular help of Utkarsh (especially at the time

when she needed it the most) she has a dignified life now. In her business, she has

engaged 4 labor and also has purchased a small plot of land.

Initially, Meera took JLG loans from Utkarsh. As she was able to establish herself and her

business grew, she took higher loan in subsequent cycles. Today she is an MEL client of

Utkarsh under which loans of INR 50,000 to 3, 00,000 as extended based on merits.

UTKARSH VOICE Q3 [FY 14-15] : Volume-3, Issue-5

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UTKARSH in NEWS

The Hindu Business Line

Date: December 22, 2014

Utkarsh in electronic media:

http://www.vccircle.com/news/micro-

finance/2014/12/22/cdc-lok-capital-lead-21m-

funding-round-utkarsh-micro-finance

http://www.dealcurry.com/20141222-Utkarsh-

MFI-Secures-Funding-From-Lok-Capital-CDC-

Group.htm

http://www.mydigitalfc.com/news/utkarsh-

receives-21-million-funding-plans-more-

products-046

The Economic Times

Date: December 22, 2014

UTKARSH VOICE Q3 [FY 14-15] : Volume-3, Issue-5

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UTKARSH ACTIVITIES: Photo Glimpses

Client Meet at Laksar, Haridwar

Client Meet at Bihta, Bihar

UTKARSH VOICE Q3 [FY 14-15] : Volume-3, Issue-5

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Utkarsh Annual Function – Corporate Event

Remembering 5 Year’s Journey

Welcoming the New Year 2015!

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

Manager, Corporate Communication, Utkarsh Micro Finance Pvt. Ltd.

Registered Office: S-2/639-56, Varuna Vihar Colony, J.P. Mehta Road, Cantt. Varanasi, Uttar Pradesh – 221002.

Corporate Office: S-24/1-2, First Floor, Mahavir Nagar, Orderly Bazar, Near Mahavir Mandir, Varanasi, UP – 221002

Contact us at: 0542-2500596: communications@utkarshmfi.com; www.utkarshmfi.com