Bengaluru, 13th May 2011: Despite a challenging year for the microfinance sector, Ujjivan Financial Services recorded a profit growth of 49% over last year. Its PBT stands at Rs.17.72 Crores with a post-tax profit of Rs.11.41 Crores in the fiscal year 2010-11.
The highlights:
• Income growth of 86% over last year
• Loan portfolio up by 69% to Rs.625 Crores
• Repayment rate at a robust 98.91%
• Portfolio at risk (PAR) above 30 days stands at 1.03%
Ujjivan expanded its presence from 230 branches to 351 branches across 20 states while its customer base grew by 60% to nearly one million. Samit Ghosh, Managing Director said, “Despite the sector passing through a tough phase since October, we received fresh funding during this period from financial institutions in India & abroad, and maintained our portfolio quality. We continue to serve our customers, emerging stronger from the crisis.”
The Company’s current year financials include a provision of Rs.3.79 Crores. This is based on a voluntary graduated scale increasing from 0.25% provisioning for standard assets, to 100% for over dues greater than 180 days. “Although we have no exposure to Andhra Pradesh, we will continue to follow provisioning norms that are significantly higher than the regulatory prudential norms of RBI”, said Mr. Ghosh.
Ujjivan made the following announcements to its stake holders:
• For the second year in a row, a token dividend of 2% subject to shareholders’ approval
• Budgeted Rs.63.50 lakhs towards continuing the highly successful Social Development Program to serve the communities where branches are located. Last year Ujjivan spent over Rs.25 lakhs primarily towards welfare support for children in state government-run anganwadis
• Employees to receive statutory and performance bonus
Ujjivan was one of the first MFIs to announce compliance with the new RBI norms on the interest cap, processing fees and discontinuance of security deposit on new loans to customers funded under priority sector borrowing from banks. It has also launched a major financial literacy program to educate its customers on dangers of over borrowing, ‘ghost lending’ and managing their finances in a responsible manner. “We can overcome the current crisis only by jointly working with our customers to resolve the problem of over borrowing and over extension of credit”, Mr. Ghosh concluded.
About the Company:
Ujjivan Financial Services, a microfinance institution (MFI), started operations in Bangalore in 2005 and is a partner of Grameen Bank, Bangladesh. It serves over 1 Million urban and semi-urban poor customers in 20 states across India through 351 branches and with over 4000 employees. In the last 6 years, Ujjivan has disbursed loans of over Rs.2000 Crores with a repayment rate around 99%. It won the Srijan MFI Transparency Award in 2010 and was ranked #1 in the microfinance industry in 2009 as the Best Place to Work. In a jointly funded program with staff, Ujjivan also provides emergency relief from natural & manmade disasters to customers and staff across the country. These activities are in addition to healthcare, education and vocational training programs provided to the customers in collaboration with Ujjivan’s sister organization, Parinaam Foundation. For more information, visit
For more information, contact:
Ankur Ganguly, Communications Manager, +91.81.4757.6282 /
Sudha Suresh, Chief Financial Officer, +91.96325.00431 / |
