Corporate Background: Founded in 2009 by Govind Singh, Utkarsh Micro Finance Ltd focuses on serving the bottom-of-the-pyramid (BOP) customer segment. The company’s customer base is predominantly women focused; the joint liability group loans are specifically designed for the lower-income women.
The Varanasi headquartered MFI has operations in Uttar Pradesh, Bihar, Jharkhand, Maharashtra, Madhya Pradesh, Chhattisgarh, Delhi-NCR, Uttarakhand, Haryana, and Himachal Pradesh.
Currently, it is serving over 1.2 million clients with a portfolio of over Rs 1,809 crores.
The turning point:
Utkarsh MFI got RBI’s “in-principle” approval to set up a small finance bank in October 2015 and is the only and sole lender in U.P to get a small bank license. In November 2016 it has received a final license from The Reserve Bank of India (RBI) to start operations as Small Finance Bank (SFB). The new SFB will be named as ‘Utkarsh Small Finance Bank Ltd-‘ and is likely to start banking operations in early 2017.
Milestones in 2016-17:
Skoch Award (Gold) – 2016 for inclusive insurance.
CARE has revised the company’s Long-term bank facilities to CARE A from CARE A-.
CARE has revised the company’s NCD rating facility to CARE A from CARE A-.
Received final license for Utkarsh Small Finance Bank Ltd.
Milestones in 2015-16:
Expanded in the region of Chhattisgarh and Jharkhand.
Client base more than 10 lakh – achieved stated (in 2009) VISION for 2016.
Grading upgraded to M1 (Highest) from M2+ by ICRA Ltd.
CARE has assigned A- on Bank Loan rating.
CISME award – MSME Banking Excellence Award.
Received in- principle Approval for Small Finance Bank
Existing Investors Include: AavishkaarGoodwell, CDC UK, IFC, Lok Capital, Norwegian Microfinance Initiative (NMI), 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 and private equity funds Faering Capital and Arpwood Capital. Aditya Deepak Parekh is an Additional Director in Utkarsh MFI.
Key Parameters: ( As on 31st March 2018)
Share Capital (In. Rs.) —96,48,08,440.
Reserves and Surplus——-6,69,04,12,020.
Book Value per share in 2017-18———[email protected] 80.