Q4 FY 2015-16 Highlights The closure of Q4, FY 2015-16 brought in landmark achievement in the history of Utkarsh journey. The company attained the stated Vision of Serving one million households through a range of socially oriented products and services by 2016. The company had 10,10,208 active client base as at March 31, 2016, which is 1.67 times the active client base of 6,08,288 as on March 31, 2015. Mr. Govind Singh, MD & CEO of the company said, This is special moment for all us. This is the result of passion and untiring hard work put in by each and every member of Utkarsh family during last 6 and a half years. He also acknowledged the all-round support of all stakeholders. The company was also adjudged for the MSME Banking Excellence Award 2015 by the Special Jury for Serving MSMEs. The award was given by Chamber of Indian Micro Small & Medium Enterprises (CIMSME) in an event at New Delhi. At the close of Q4, FY 15-16, the total outreach of Utkarsh active client base stood at 10,10,208 with a total portfolio outstanding of 14324.9 Mn. The cumulative disbursements figures of the company had almost doubled from 18,166 Mn till March 31, 2015 to 35,300 Mn till March 31, 2016. The microfinance outreach (JLG Business) of the company had 9,95,810 active client base with a portfolio outstanding of 13,433.4 Mn, whereas, the Micro Enterprises Loan Business and Housing Loan Business (pilot project) had 14,326 and 72 active clients base respectively with portfolio outstanding of 871.3 Mn and 20.2 Mn respectively. The company started its business operations in 2 new states of Jharkhand and Chhattisgarh. With this, the company is now present in 10 states with a total of 342 branches (321 JLG Branches and 21 MEL & Housing Loan Branches). During the year, the company opened 87 new branches (81 JLG Branches and 6 MEL Branches). Under the Credit Plus initiatives, the company continued to take up its activities focused on Education (Financial Awareness), Health (Poly Clinic at Branch and through Mobile Van) and Goodwill gestures. Incrementally, the company launched the second Mobile Van Poly Clinic at 5 branches in Satna Division, Madhya Pradesh. Along with all business activities, the quarter was marked special with new incumbents in the Senior Management. Mr. Arup Kumar Dutta joined the company as Head Liabilities, Mr. Ashwani Srivastava as Head - Current Accounts and Mr. Vinod Tiwari as Head - Projects. 1
New Incumbents in the Senior Management Arup Kumar Dutta, Head - Liabilities He has been associated with the banking and financial sector all throughout his career spanning 23 years. Prior to joining Utkarsh, he was with Axis Bank in the corporate as well as retail banking verticals in senior leadership roles. He has handled responsibilities in the areas of Retail Branch Banking, Corporate Liabilities, Cash Management Services and Government Business including Financial Inclusion initiatives. Earlier, he was with Unit Trust of India, handling assignments related to Sales & Marketing (strategic planning), Accounts and Operations. He is an Economics graduate from Visva - Bharati University, standing First in the order of merit and also holds Post Graduate Degree from Himachal Pradesh University. His other professional qualification include PGDBM from IISWBM-Kolkata, PGCHRM from XLRI- Jamshedpur and JAIIB from IIBF-Mumbai. Ashwani Srivastava, Head Current Accounts He has more than 15 years of experience in banking and finance industry, especially in the domain of Current Accounts, Cash Management Services, Merchant Acquisition and Payments. Before joining Utkarsh he was associated with CMS Info Systems Limited as National Sales Head for Door Step Banking. Prior to that he had worked with Axis Bank for more than 8 years with Retail Banking and Business Banking departments. His last assignment in Axis Bank was as a Zonal Business Coordinator for West in Merchant Acquisition Department. He had also worked with Bobcards Limited (A Subsidiary of Bank of Baroda). He is an MBA in Marketing from Lucknow University and also Post Graduate in Physics from Kanpur University. Vinod Tiwari Head Projects He has overall 11 years experience in Real Estate (Projects & Administration) and work place management (Facility Management). He has worked with companies in the domain of BPO / KPO / IT, Banking, Government Embassy, Infrastructure, Real Estate, Hotels and Travel. He has done Hotel Management from BVB Delhi, Graduation Degree from Delhi University, Diploma in German from BVB Delhi. 2
Employee Speak I joined Utkarsh Micro Finance Pvt. Ltd. As Trainee Credit Officer (TCO) in August 2013. With more than 2 and half years of career at Utkarsh my efforts were recognize by the management and I was promoted as Acting Branch Manager at Sigra Branch. Here, I got wonderful opportunity to learn and develop myself professionally and personally as well. Excerpts from a talk with Ms. Kanya Vishwakarma, Acting Branch Manager Sigra, Varanasi. OPERATIONAL HIGHLIGHTS The outreach of the company grew to newer operational geographies in 10 states viz. Uttar Pradesh, Bihar, Jharkhand, Delhi-NCR, Uttarakhand, Himachal Pradesh, Haryana, Maharashtra, Madhya Pradesh and Chhattisgarh. The total districts being covered in 10 states grew to 98. The branch network expanded to 342 [321 JLG Branches and 21 MEL Branches] with (2 MEL Branches having Housing Loan pilot business also) for serving more than 10 lakh active clients. At the close of Q4, FY 2015-16 the JLG portfolio stood at 13,433.4 Mn with 9,95,810 lakh Active Clients, the MEL portfolio was 871.3 Mn with 14,326 active clients and the Housing Loan pilot reached 72 active clients with 2.02 Mn portfolio outstanding. The total portfolio of the Company was 1,432.48 Mn as on March 31, 2016. The Company opened 87 new branches (81 JLG Branches & 6 MEL Branches) during the FY 2015 16. A comparative summary of the operational highlights of the company is as below: Particulars As on Mar 31, 2016 As on Mar 31, 2015 As on Mar 31, 2014 MICROFINANCE OUTREACH No. of States 10 8 8 No. of Districts 98 65 40 Total No. of Branches 321 240 142 No. of Branches in Uttar Pradesh 100 87 74 No. of Branches in Bihar 103 77 39 No. of Branches in Maharashtra 33 26 4 No. of Branches in Madhya Pradesh 29 18 8 No. of Branches in Delhi - NCR 8 8 8 No. of Branches in Uttarakhand 13 13 7 No. of Branches in Himachal Pradesh 1 1 1 No. of Branches in Haryana 16 9 1 No of Branches in Jharkhand 15 - - No of Branches in Chhattisgarh 3 - - Total No. of Centers 60,484 37,752 20,476 Total No. of Groups 264,576 152,206 80,181 Total No. of Members 1,061,050 639,753 337,543 Total No. of Clients 995,810 601,465 317,900 Total Disbursement Cumulative ( in Mn) 33,964.8 17,663.9 8,999 3
Particulars As on Mar As on Mar As on Mar 31, 2016 31, 2015 31, 2014 Loan Outstanding ( in Mn) (Own+ Managed) 13,433.4 6,922.8 3,436 Total No. of Loan Disbursed 2,054,248 1,189,081 664,219 Total No. of Credit Officers 1,520 972 575 No. of Client Per Credit Officer 655 619 533 Repayment Rate (%) 99.8% 99.9% 100% Par > 30 Days No. of Clients 1,138 214 15 Amount ( In Mn) 11.11 1.81 0.21 MICRO ENTERPRISES LENDING No. of States 5 4 3 No. of Districts 21 14 9 Total No. of Branches 21 15 9 Total No. of Loan Disbursed 17,463 7,792 2,564 Total No. of Clients 14,326 6,823 2,415 Total Disbursement Cumulative ( in Mn) 1,315.4 502.3 149.0 Loan Outstanding ( in Mn) (Own +Managed) 871.3 358.1 120.3 No. of Relationship Officer (RO) 141 83 43 No. of Clients /RO 102 82 56 PAR > 90 Days No. of Clients 367 87 1 Amount (In Mn) 14.65 3.71 0.01 AFFORDABLE HOUSING LOAN No of States 2 - - No. of Districts 2 - - Total No of Branches 2 - - Total no of Loan Disbursed 72 - - Total No. of Clients 72 - - Loan Outstanding ( in Mn) 20.2 - - NATIONAL PENSION SYSTEM (NPS) No. of States 2 2 2 No. of Districts 13 13 7 Total No. of Branches 53 53 41 No. of Accounts 34,143 34,015 1,340 Total Subscription-Cumulative ( in Mn) 11.8 10.24 3.01 EMPLOYEES Operational Employees 2,430 1619 898 Total Employees 2,636 1753 1,032 EMPLOYEE DETAILS Particulars As on Mar As on Mar As on Mar 31, 2016 31, 2015 31, 2014 JLG Operation 2188 1476 821 MEL Team & AHL 261 143 87 Support and Control Team 187 133 119 TOTAL 2636 1,752 1031 4
SOCIAL INTERVENTIONS (Credit Plus Activities) HEALTH INITIATIVES In order to provide primary health care services in Company s operational area where medical facilities are limited, Samutkarsh Welfare Services (SWS) has tied up with Ram Krishna Sewashram Hospital and GV Meditech Group. In association with them, SWS organizes Poly Clinics at Branches and also through Mobile Vans. These Poly Clinics are organized fortnightly every month in 8 branches. The beneficiaries are given free medical consultation and medicines. A total of 41 Poly Clinics were organized during Q4 FY 2015-16, benefiting 3,342 patients. The company extended the Mobile Van facility to 5 new branches in Satna Division, Madhya Pradesh. Till date, a total of 91 Mobile Van Poly Clinics have been organized and 14,093 patients have benefitted with medical services. In the FY 2015-16, a total of 25,031 patients have been provided with Primary Medical Health Care services across 18 branches. FINANCIAL AWARENESS In association with IFC & Utkarsh This project is presently being implemented at 9 Branches of Uttar Pradesh and Bihar. The project was successfully completed on March 31, 2016. Against a targeted plan of training 19,000 members through this project, a total of 19,856 members had been trained. In association with Swiss Capacity Building Facility (SCBF) ACCION This project was launched in May 2015, in 5 branches and till March 31, 2015, a total of 11,689 beneficiaries received Financial Literacy training. SIDBI-PSIG Project This project was funded by Department for International Development (DFID). It was launched through 7 MFIs in Uttar Pradesh and Bihar to cover 60,000 beneficiaries. The project was implemented through 16 branches with the help of 22 Master trainers to provide Financial Literacy & Women Empowerment training to 16,500 members in 5 districts Ara, Kaimur, Deoria, Gazipur & Sant Ravidas Nagar. As on March 31, 2016, a total of 15,741 clients had been trained under this project. SWS Financial Literacy Program SWS Financial Literacy Program was launched in October 2015 across 9 branches in Madhya Pradesh and Bihar. Till March 31, 2016, a total of 5,842 beneficiaries had completed financial literacy training through 9 branches viz. Amarpattan, Bara Chakia, Bettiah, Gyanbabu Chowk, Maihyar, Motihari, Narkatiyaganj, Rewa and Satna. Community Mass Awareness Camps were also conducted at village level, wherein 6,792 beneficiaries participated across 19 camps. In the FY 2015-16, the Financial Literacy Education Program reached 53,184 beneficiaries. 5
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, a total of 771.5 kgs of agarbatti had been rolled by the beneficiaries of this training program and 630 kgs of raw agarbatti and 283.5 kgs of scented agarbatti had also been linked to the market. Success Stories as clients speak I come from a Harahua village which is a few kilometers away from the holy city of Varanasi. Six year ago we were a happy family when the earnings of my husband was enough to take care of our entire family of six. Unfortunately six years back my husband got seriously ill and was advised complete bed rest. Day by day the condition became critical and we had to incur heavy medical expenses which dried up all the tittle savings which we had. It was becoming hard for us to manage the household and medicine expenses as there only source of my husband income stopped. I started borrowing but gradually it was becoming tough to borrow money from money lender and relatives. My eyes get full of tears remembering those old days. One such day I came to know about Utkarsh from a lady of my village, who informed about the Vocational Training for Agarbatti making and the market linkage of provided by Utkarsh. This motivated me to join the training to earn something for my family. Now, I am an active member of the training group and able to make (roll) 50 to 70 kgs on weekly basis and earn a reasonable amount to take care of my family. Today I am more confident and settled in my life as I am able to repay all our old debts and afford a better treatment for my husband, send my children to a good school. I am very happy and would be always thankful to Utkarsh for providing a regular source of income (especially at the time when I needed the most). It was not merely a help for me, it was something which made me more confident in life. 6
UTKARSH in NEWS 7
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MSME BANKING EXCELLENCE AWARDS-2015 to Utkarsh January 18, 2016, Monday FICCI Auditorium, New Delhi Sports Event on, February 20, 2016 9
Utkarsh Micro Finance Conference, 1 st Meet of Academia Stakeholders Feb 01, 2016, Varanasi 10
Festival Celebrations, January 14, 2016 (Celebrating an important milestone of crossing one million active client based) 11
Board Meeting in Progress 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 publications@utkarshmfi.com website www.utkarshmfi.com 12