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Bengaluru, 17th May 2012: In a challenging year for the microfinance sector, Ujjivan Financial Services recorded 12.5% portfolio growth, ending financial year 2011-12 at Rs.703 Crores with a Profit before Taxes of Rs.2.19 Crores. Its customer base grew to over 1.04 million across 20 states and Union Territories. Ujjivan’s operations in Maharashtra & Gujarat in West and in Haryana & Punjab in North expanded steadily this year.
Samit Ghosh, managing director, said, “This year we consolidated operations and improved our portfolio quality while strengthening customer relationships. Despite a very difficult first two quarters due to funding constraints, we were able to close the year with a modest profit.”
While funding had dried up 2011-12, leading to decline in business, Ujjivan received a landmark Rs.127.8 crores (USD 25.5 million) in its fifth equity infusion in January 2012. “We received debt and equity funding in the latter half of the year from investors and financial institutions in India and overseas”, said Mr. Ghosh.
In 2011-12, Ujjivan undertook major business consolidation and efficiency measures to reduce costs and rationalised the number of branches from 350 to 299 through mergers. This reduced its operating costs to comply with the new norms of the Reserve Bank of India. Significantly however, it expanded its Social Development Program on child and community-welfare projects at 192 branches across the country. It has also successfully undertaken a financial literacy program for over a million customers through Sankalp – an interactive audio-visual session on the dangers of over borrowing and ‘ghost lending’ or sub lending.
Talking about the future of the sector, Mr.Ghosh said, “We look forward to the fast clearance of the Microfinance Bill which will provide long term direction to the microfinance sector to achieve the financial inclusion goal for the country by 2020”.
In 2011 Ujjivan won the industry-distinguished Microfinance Organisation of Year award and ranked first in the microfinance industry as the Best Company to Work For.
Download our Audited Financials for 2011-12 |
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