First repayment Instalment due for Rs.14.3 Million. Ujjivan pays back on 7th Dec 2010
As per schedule, balance instalments are due in 7 quarterly instalments

RBI issues letter urging banks to continue lending to MFIs

Yes Bank issues letter to Ujjivan for complete repayment of facility before 31st December 2010.

Ujjivan pre-pays Rs.85.7 Million to Yes Bank, based on the above letter under protest and files a complaint with the CMD of Yes Bank.

Though standard clauses of Agreements do provide for the right to recall the loan without assigning any reason, in this case the bank cited the bad business environment in Andhra Pradesh (AP) as a reason for recall of the loan. Ujjivan did not have any exposure to AP, and its business operations and liquidity were sound,

Ironically, this letter was sent by the Bank the same day as Reserve Bank of India’s call to banks to support MFIs working outside Andhra Pradesh.

Ujjivan operates in twenty states and Union territories and has no operations or loan exposure in Andhra Pradesh. Mr. Samit Ghosh, Managing Director and CEO, said, "Ujjivan continues to enjoy strong business operations across twenty states in India, excellent portfolio quality, and more than sufficient liquidity to meet all our contractual loan servicing requirements. We have consistently met all loan servicing requirements to all our lenders on or before due date''. Ujjivan’s loan portfolio continued to improve even during the industry crisis and ended 2010 with a cumulative repayment rate of around 99.10%.