Bangalore, 24 May 2010: Ujjivan Financial Services, a microfinance institution (MFI), recorded its first year of profitable operations with a post-tax profit of Rs.9.63 Crores in the financial year 2009-10. Ujjivan has wiped out the accumulated losses of Rs.5.85 Crores of the first four years of start-up operations and transferred Rs.1.9 Crores to Statutory Reserves.

The highlights include:

          Bonus for its employees who have built the Company over the last 5 years
          A maiden token dividend of 2% subject to shareholders’ approval
          Rs.31.5 lakhs allocated to social development fund for projects to be undertaken by the branches
            along with the customers

Mr. Samit Ghosh, Managing Director, Ujjivan said, “We have transformed from a start-up to a mature social enterprise in the year 2009-10. With maturity comes responsibilities and we hope we have delivered against these objectives to the satisfaction of all our stakeholders.”

Extending further benefits to its customers after the first year of profitable operations, the Ujjivan Board also reduced loan interest rates. “As a company committed to our social mission and double bottom line, it is our obligation to not only pass on the benefits of scaling up to our customers but to also share our profitability in servicing the poor”, Mr. Ghosh added. The reduction in interest rates ranges from 2.9 – 1.9% p.a. effective July 1, 2010 for all new loans or renewals: