UTKARSH VOICE › assets › policy › Newsletter_Q2_… · UTKARSH VOICE Q2 [FY 16 -17]: Volume-8, Issue-2 2 Branding – To reach people with information on Utkarsh SFB and to

UTKARSH VOICE Q2 [FY 16 -17]: Volume-8, Issue-2

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Q2 FY 2016 -17 Highlights

The quarter was marked special with completion of 7 years of microfinance outreach of

the company (since Sep. 2009). The company has over 1.2 Mn active clients with over

₹17,700 Mn of portfolio outstanding as at the end of the quarter. The Delhi Regional Office,

comprising of Delhi NCR, Uttarakhand, Haryana and Himachal Pradesh crossed the

milestone of ₹200 crore portfolio during the quarter.

The microfinance outreach, the JLG active client base, was over 1.18 Mn with portfolio

outstanding of over ₹16,700 Mn, the MEL portfolio was ₹951.5 Mn with 16,816 active

clients and the Housing Loan pilot reached 122 active clients with ₹34.0 Mn portfolio

outstanding. The total portfolio of the Company was ₹17,740.7 Mn as on Sep. 30, 2016.

The Company has been adjudged with “Skoch Inclusive Insurance (Gold category) Award

2016”. The same has been adjudged for being amongst the ‘Top 100 Projects in India’ for

financial inclusion through insurance, covering and settlement for highest number of lives

and customer servicing during the year 2016.

Domestic Equity of ₹395 crore – For setting up the Utkarsh Small Finance Bank, reputed institutional investors - HDFC Standard Life Insurance Co. Ltd, HDFC Ergo General

Insurance Co. Ltd, ICICI Prudential Life Insurance Co. Ltd, Shriram Life Insurance Co. Ltd,

RBL Bank Ltd, Small Industries Development Bank of India (SIDBI) and private equity firms

like Faering Capital and Arpwood Capital have made equity investment. Post this

investment, the company is now a Domestic Company, which is an important eligibility

parameter for an SFB.

Constitution of the new Board for Utkarsh Small Finance Bank – Experienced and reputed personalities for the new Board of SFB:

i. Dr. V. S. Sampath, retired Chief Election Commissioner; 1973 batch IAS Officer ii. Mr. Tantra N. Thakur, retired MD & Chairman of Power Trading Corporation;

Member of Indian Audit and Accounts Service.

iii. Mr. Somnath Sengupta, ex-Executive Director of Axis Bank; 38 years of banking

experience.

iv. Ms. Anita Ramachandran, Founder and Director of Cerebrus Consulting, an HR and

Management Consulting firm; 37 years of management consulting experience.

v. Mr. Govind Singh, Director and MD & CEO (designate).


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Branding – To reach people with information on Utkarsh SFB and to establish the Utkarsh brand amongst them, public relation activities have already been initiated. The Company

has made suitable agreements with Focus 360o

Media Pvt. Ltd. for branding activities and

with Adfactors PR for public relations activities.

Banking Training of existing employees – More than 1,700 employees have already undergone Basic Banking Training. In the 2

nd

phase (Module II running simultaneously),

employees are now being made aware of the new products and processes. New software for Banking – The Company has partnered with Intellect Design Arena Ltd. as technology partner for the Banking Software. Most of the modules of the software are

ready and work is on for few other modules. AGS Transact Technologies Ltd. would be

the ATM and Payments Services partner.

Recruitment for banking operations expansion – For providing new services (deposit facilities, insurance, mutual funds, etc.) as well as for providing existing services in new

areas, suitable recruitments (especially for Middle and Senior Management) have largely

been done. In coming months, more recruitments shall be done, especially for the junior

managers and the executives.

Training agreement with National Institute of Banking and Finance (NIBF) – For recruitment & training for banking operations employees, the company has made agreement with NIBF, Raipur, Chhattisgarh. Specially selected candidates shall be joining

the company after completing the 4 months banking certification program from NIBF.

Under the Credit Plus initiatives, the company continued to take up its activities focused on Education (Financial Awareness), Health (Branches and also Mobile Poly Clinic vans)

and Goodwill gestures. Incrementally, the company launched the second set of Mobile

Van Poly Clinic through 5 more branches (now total 10); the new one’s being 5 in

Gorakhpur Division, Uttar Pradesh during Q2, FY 2016 – 17.

Along with all business activities, the quarter was marked special with new incumbents joining in the Senior Management. Mr. Haresh R Wadhwa, joined the company as Head - Operations, and Mr. Mohan Kumar Sahni as Business Head - Cards.

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

sent the 3rd

batch of 46 employees (representing operations and non-operations employee

from branches and administrative officers) for ‘Reward and Recognition Tour’ to Jaipur from July 09, 2016 to July 13, 2016 respectively.


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Grading –

ICRA has assigned an MFI grading of M1 (pronounced M one) to Utkarsh Micro Finance

Limited (UMFL). The grading indicates that in ICRA's current opinion, the MFI's ability to

manage its microfinance activities in a sustainable manner is the highest. The grading is

valid till July 2017.

The Strengths and Challenges highlighted in the report are:

Strengths Experienced and professional management team; strong investor profile.

Robust loan origination, risk management, internal audit and MIS systems leading

to healthy asset quality.

Comfortable capitalization indicators supported by regular capital infusion; foreign

shareholding likely to be lowered to meet SFB requirements.

Financial flexibility arising from diversified funding mix; need to deepen the liability

franchise on conversion to an SFB.

Healthy profitability indicators supported by lower operating expense levels.

Challenges

Ability to smoothly transition into a small finance bank.

Recruiting training and retaining manpower, as it converts into an SFB.

Issues like multiple borrower identities and limited coverage of credit bureaus need

to be addressed to reduce industry level risks.

Ability to manage political, communal and other risks across geographies of

operations.

High pace of growth, albeit growth largely driven by addition of new clients.

Ability to deepen the liability franchise and develop a strong deposit base on

conversion to an SFB

New Incumbents in the Senior Management Haresh R Wadhwa, Head - Operations He has been associated with the banking sector for over 22 years.

Prior to joining Utkarsh, he was with IndusInd Bank Ltd as Vice

President and Head - Process and Projects in General Banking

Operations and has domain expertise of processes and policy

documentation, vetting and Internal Controls. He was also

instrumental in setting up currency chests for the bank. Prior to

IndusInd Bank, he was with ICICI Bank as Chief Manager - Process

Reengineering at Corporate Office, holding various roles covering

retail operations, innovations, currency management including a stint for over a year in

ICICI Bank Plc, UK- London office handling Retail, Trade Finance and Corporate Operations.

He had also worked with UTI Bank Ltd (Axis Bank) and Shamrao Vithal Co-operative Bank

at various branches handling retail operations. He is a Commerce Graduate from Mumbai

University and also holds LLB Degree from Mumbai University, ICFAI - MBA (Diploma) and

CAIIB (Certified Associate of Indian Institute of Bankers).


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Mohan Kumar Sahni, Business Head - Cards

He has more than 11 years of experience in banking and finance

industry, especially in the domain of Cards (Debit, Credit, Prepaid and

Travel), Retail Forex and Remittances, Digital Channels, Products and

Rural as well as Corporate Banking. Prior to joining Utkarsh, he was

with Axis Bank Ltd. in various capacities of Marketing (as National

Activation Head - Branch Marketing) and Corporate Banking domains

(as Assistant Vice President in Corporate Relationship Group, New

Economy Strategic Clients). He had also stint with Thomas Cook India

Ltd as Senior Executive (Corporate Sales - Foreign Exchange), Bank of Punjab as Junior

Officer - Foreign Exchange and TATA Motors as Associate, Process Action Group. He

holds Post Graduate Diploma in Business Management from LLIM, Mumbai.

Employee Speak “…”

"For now over 7 years, I am working with Utkarsh. I especially appreciate the work

philosophy and ethics that I learnt here. The company not only provides a challenging

environment for a better career but also shapes us as a responsible individual with

integrity. Here, I have always been groomed & developed to be an effective & efficient

employee & more than that a responsible human being. I really feel precious as an

employee. I can very confidently say that Utkarsh is one of the best places to work.

Excerpts from a talk with Mr. Vinay Singh, Regional Manager- Microfinance Business

Varanasi.

OPERATIONAL HIGHLIGHTS

The outreach of the company grew to newer operational geographies in 10 states viz. Uttar

Pradesh, Bihar, Jharkhand, Delhi-NCR, Uttarakhand, Haryana, Himachal Pradesh,

Maharashtra, Madhya Pradesh and Chhattisgarh. The total districts being covered in 10

states grew to 108. The branch network expanded to 370 [344 JLG Branches and 23 MEL

Branches] with (3 MEL Branches having Housing Loan pilot business also) for serving more

than 1.2 Mn active clients.

At the close of Q2, FY 2016 -17, the JLG active client base was over 1.18 Mn with portfolio

outstanding at over ₹16,700 Mn, the MEL portfolio was ₹951.5 Mn with 16,816 active

clients and the Housing Loan pilot reached 122 active clients with ₹34.0 Mn portfolio

outstanding. The total portfolio of the Company was ₹17,740.7 Mn as on Sep. 30, 2016.


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

Particulars As on Sep 30, 2016

As on Mar 31, 2016

As on Sep 30, 2015

MICROFINANCE OUTREACH No. of States 10 10 9

No. of Districts 108 98 80

Total No. of Branches 344 321 277

No. of Branches in Uttar Pradesh 103 100 94

No. of Branches in Bihar 110 103 89

No. of Branches in Maharashtra 37 33 30

No. of Branches in Madhya Pradesh 29 29 23

No. of Branches in Delhi - NCR 8 8 8

No. of Branches in Uttarakhand 13 13 13

No. of Branches in Himachal Pradesh 1 1 1

No. of Branches in Haryana 17 16 15

No of Branches in Jharkhand 21 15 4

No of Branches in Chhattisgarh 5 3 -

Total No. of Centers 71,578 60,484 48197

Total No. of Groups 322,782 264,576 202,391

Total No. of Members 1,253,624 1,061,050 840,493

Total No. of Clients 1,185,764 995,810 776,353

Total Disbursement – Cumulative ( in Mn) 44,369.8 33,964.8 24,124.9

Loan Outstanding ( in Mn) (Own+ Managed) 16,755.2 13,433.4 9,218.3

Total No. of Loan Disbursed 2,555,819 2,054,248 1,552,361

Total No. of Credit Officers 1,823 1,520 1,278

No. of Client Per Credit Officer 650 655 607

Repayment Rate (%) 99.3% 99.9% 99.8%

Par > 30 Days

No. of Clients 2,972 1,138 325

Amount ( In Mn) 30.4 11.11 3.02

MICRO ENTERPRISES LENDING No. of States 7 5 4



Total No. of Loan Disbursed 21,582 17,463 11641

Total No. of Clients 16,816 14,326 9924

Total Disbursement – Cumulative ( in Mn) 1,663.6 1,315.4 816.0

Loan Outstanding ( in Mn) (Own +Managed) 951.5 871.3 557.1

No. of Relationship Officer (RO) 251 141 83

No. of Clients /RO 67 102 120

PAR > 90 Days

No. of Clients 470 367 426

Amount (In Mn) 18.4 14.65 18.60


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Particulars As on Sep 30, 2016

As on Mar 31, 2016

As on Sep 30, 2015

AFFORDABLE HOUSING LOAN No of States 2 2 2


Total No of Branches 2 2 2

Total no of Loan Disbursed 128 72 22

Total No. of Clients 122 72 22

Loan Outstanding (₹ in Mn) 34.0 20.2 4.8

NATIONAL PENSION SYSTEM (NPS) No. of States 2 2 2



No. of Accounts 34,136 34,143 34,143

Total Subscription-Cumulative ( in Mn) 11.3 11.8 10.51

EMPLOYEES Operational Employees 2,785 2,430 2092

Total Employees 3,188 2,636 2282

EMPLOYEE DETAILS

Particulars As on Sep 30, ‘2016

As on Mar 31, ‘2016

As on Sep 30, ‘2015

JLG Operations 2546 2188 1892

MEL and AHL Teams 307 261 220

Support and Control Teams 335 187 170

TOTAL 3188 2,636 2,282

FINANCIAL PERFORMANCE The Company achieved a PBT of `371.38 Mn for Q2 FY 16 - 17. Important financial parameters are as below:

Particulars As on Sep 30, ‘2016(Unaudited)

As on Mar 31, 2016 (Audited)

As on Sep 30, ‘2015 (Unaudited)

Income (` in Mn) 1952.63 2537.8 1081.91

Expenses (` in Mn) 1581.25 1926.7 814.29

Profit Before Tax (` in Mn) 371.38 611.1 267.62

Net Worth (` in Mn) 5137.03 2,525.8 2372.74


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Key indicators Q2 FY 2016 - 17

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, Utkarsh Welfare Foundation (UWF) has tied up with Ram

Krishna Sewashram Hospital and GV Meditech Group. In association with them, UWF

organizes Poly Clinics at Branches and also through Mobile Vans.

The Regular Poly Clinics are organized fortnightly every month through 8 branches. The

beneficiaries are given free medical consultation and medicines. A total of 43 regular Poly-

Clinics were organized during Q2 FY 2016-17, benefiting 4,325 patients.

Similarly, the Medical Mobile Van facility is presently operating through 10 branches; 5 in

Satna Division, Madhya Pradesh and 5 in Gorakhpur Division, Uttar Pradesh. A total of 58

Medical Mobile Van Poly-Clinics were organized during Q2 FY 2016-17, benefiting 10,716

patients. Till Sept. 2016, a total of 208 Medical Mobile Van Poly-Clinics have been

organized and 32,051 patients have benefitted with medical services.

In the Q2 FY 2016 -17, a total of 15,041 patients have been provided with Primary Medical

Health Care services across 18 branches.

FINANCIAL AWARENESS:

In association with Swiss Capacity Building Facility (SCBF) – ACCION

This project was launched in May 2015, in 5 branches and during Q2 FY 2016 - 17, a total

of 3,319 beneficiaries received Financial Literacy training. Cumulatively, a total of 18,218

beneficiary has been trained so far. The SCBF project is currently operated in Azamgarh,

Bhojpur, Brahmpur, Chota Jamalpur and Harahua.

Key Indicators As on Sep 30,

2016 (Unaudited) As on Mar 31, 2016 (Audited)

As on Sep 30, ‘2015 (Unaudited)

CRAR 29.74% 20.68% 26.01%

Operating Self Sufficiency

(OSS)

124.6% 133.3% 134.2%

ROA 2.60% 3.29% 3.40%

ROE 14.29% 15.88% 14.46%

Debt Equity 2.78% 4.81 3.32%

Operating Expense Ratio 8.63% 7.16% 7.13%

Cost of Borrowing 12.55% 13.48% 13.99%

On Time Repayment Rate 99.3% 99.9% 99.98%


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Utkarsh Welfare Foundation - Financial Literacy Program

UWF Financial Literacy Program was launched in September 2015 through 9 branches in

Bihar and Madhya Pradesh; but now the program is operated through 8 branches. During

Q2 FY 2016 – 17, a total of 4,345 beneficiaries had completed financial literacy training

through 8 branches viz. Amarpattan, Bara Chakia, Bettiah, Gyanbabu Chowk, Maihyar,

Narkatiyaganj, Rewa and Satna. Cumulatively, a total of 15,439 beneficiary has been

trained so far.

Dialogue on Business

The project was launched in June, 2016 initially with Varanasi Branch and now the DoB

project is also implemented in Micro Enterprises Loan Allahabad branch. The project is

designed to train MEL clients on self-management, cash management and enterprises

management. For Q2 2016-17, a total of 166 clients have been trained.

In association with FMO Project- The project was launched in June, 2016 through 5 branches of Uttar Pradesh. Now,

currently the project is being implemented through 9 branches (Ashok Vihar, Dighwara,

Garkha, Jalalpur, Madiyahoo, Naupedwa, Panchkoshi, Parmanantpur and Sonpur).

For Q2 2016-17, a total of 4,492 beneficiaries had completed financial literacy training

across 9 branches.

In the Q2 FY 2016-17, the Financial Literacy Education Program reached 12,322

beneficiaries.

Mass Awareness Program

Community Mass Awareness Camps were also conducted at village levels, wherein 4,566 beneficiaries participated across 10 camps.


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Success Stories – as clients speak “…”

Varanasi City is famous for its

culture and religious activity.

It’s not so easy for me to forget

the struggling days, when we

were facing the problem of our

daily survival. The earning of

my husband from his small

tailor shop was minimal which

was not enough to take care of

the entire family of five.

So, I decided to help my

husband in his business but

due to lack of financial

assistance it was difficult to

scale up.

I was delighted when one of my

neighbour told me about

Utkarsh Micro Finance & helped

me to meet an Utkarsh Official

who motivated me to take an

income generating loan & scale up my small business.

With an initial loan of ₹10,000/-, I purchased essentials and accessories for sewing and

with the subsequent loan of ₹15,000/-, purchased another sewing machine. So, that I help

my husband in managing the household expense.

Slowly and gradually our business got acknowledgement and today we are able to meet

our daily needs, send our children to school and save something for better future.

My two sons Roshan & Vishal and my daughter Janvi go to good convent school.

Recently, Utkarsh has allotted us a loan of ₹25,000/- to expand our tailor shop and now we

have started selling our own stitched clothes.

Our family feels good in getting timely linkage with Utkarsh on our credit requirements.

Ms. Seema Devi, a resident of Teliyabagh (Varanasi, Uttar Pradesh), is a client of Utkarsh

– Sigra Branch since Feb 2012.


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UTKARSH in NEWS


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बाढ़ पीड़ित सहायतार्थ राहत सामग्री ड़ितरण


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

Manager, Corporate Communication, Utkarsh Micro Finance 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

SKOCH (GOLD) INCLUSIVE INSURANCE AWARD 2016

3rd Batch Reward & Recognition Tour to Jaipur from July 09 to July 13, 2016
mailto:[email protected]://www.utkarshmfi.com/

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UTKARSH VOICE › assets › policy › Newsletter_Q2_… · UTKARSH VOICE Q2 [FY 16 -17]: Volume-8, Issue-2 2 Branding – To reach people with information on Utkarsh SFB and to