Ujjivan Financial Services, a Bangalore-based microfinance institution (MFI), recently put its lending operations on hold in the districts Vaishali and Muzaffarpur in the Indian state of Bihar after an October attack on its customer relations officer, Achchhe Lal Prasad.Three people on motorcycles shot and killed him while he was returning to the office with collected cash from borrowers. Ujjivan suspended its operations in the area due to the weakness of the police intervention and lack of arrests in the case. There have been eight incidents of “cash loot” crimes reported during the last 4 months. Premkumar G, Ujjivan’s Head of Administration, reportedly states that, “the killing of Acche Lal and lax police action, if any, have forced a rethink on [Ujjivan’s] part about [its] expansion plan in Bihar.” The firms’ chief operating officer, Rajat Singh, adds, “In the prevailing situation, I don’t think any MFI working in Bihar will go ahead with its expansion plan.”
Founded in 2004, Ujjivan offers business loans, educational loans, emergency loans and life insurance. As of June 30, 2012, Ujjivan reported total assets of USD 146 million, a gross loan portfolio of USD 126 million, return on assets (ROA) of 0.24 percent, return on equity (ROE) of 1.06 percent and 855,000 active borrowers. The microlender does not accept deposits.
By Sarah Benali, Research Associate
About Ujjivan Financial Services
Ujjivan Financial Services is a microfinance institution (MFI) based in Bangalore, India, that offers loans and insurance products. It was founded in 2004 and focuses on low-income women in urban and semi-urban areas. Its products include business loans, educational loans, emergency loans and life insurance. As of June 30, 2012, Ujjivan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 146 million, a gross loan portfolio of USD 126 million, return on assets (ROA) of 0.24 percent, return on equity (ROE) of 1.06 percent and 855,000 active borrowers.
Sources and Additional Resources
Ujjivan.com story: “After death in the line of duty, support for Achchhelal’s family pours in from across India,” November 2012, http://www.ujjivan.com/content/after-death-line-duty-support-achchhelal%E2%80%99s-family-pours-across-india
The Times of India story: “Changing Bihar scares microfinance firms,” November 2012, http://articles.timesofindia.indiatimes.com/2012-11-02/patna/34877519_1_mfin-brand-bihar-law-and-order-situation
MicroCapital.org story: “MICROCAPITAL BRIEF: Saija Finance Private Limited Addresses Shortage of Microfinance in Bihar, India,” July 28, 2010, https://www.microcapital.org/microcapital-brief-saija-finance-private-limited-addresses-shortage-of-microfinance-in-bihar-india/
MicroCapital Universe Profile: Ujjivan Financial Services https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ujjivan+Financial+Services
MicroCapital Universe Profile: Microfinance Institution Network (MFIN) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Institutions+Network+%28MFIN%29
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Agents for Impact Disburses $8m from Invest in Visions (IIV) to Microfinance Institutions Digamber of India, Imon of Tajikistan
- MICROFINANCE PAPER WRAP-UP: “2023 Microfinance Index Report,” Published by 60 Decibels
- MICROCAPITAL BRIEF: ADB Issues Local-currency Bond in Mongolia to Finance Invescore Lending to Women-led MSMEs
- MICROCAPITAL BRIEF: Abler Nordic Leads $10m Equity, Debt Investment Round for Ergos, Agtech Offering Crop Storage in India
- MICROCAPITAL BRIEF: MicroVest Lending $3.4m to Financiera Finexpar for Agriculture, SME Lending in Paraguay
