Standard Chartered Bank (SCB), a UK-based financial services company, recently notified MicroCapital that it has disbursed local-currency loans equivalent to USD 13 million to Janalakshmi Financial Services Private Limited (JFS) and Ujjivan Financial Services Private Limited (UFS). JFS, an Indian microfinance institution (MFI) focusing on urban areas, received INR 450 million (USD 7.4 million). Ujjivan, a Bangalore-based microfinance institution (MFI) that offers loans and insurance products, received INR 330 million (USD 5.5 million). Further information on the loans is not available.
As of March 2013, JFS reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 196 million, a gross loan portfolio of USD 177 million, 696,000 active borrowers, return on assets (ROA) of 1.97 percent and return on equity (ROE) of 8.64 percent. JFS does not accept deposits. SCB has been associated with JFS since February 2007.
As of the same date, Ujjivan reported to MIX total assets of USD 249 million, a gross loan portfolio of USD 207 million, 1 million active borrowers, ROA of 3.36 percent, ROE of 11.79 percent and 855,000 active borrowers. Ujjivan does not accept deposits and has been working with SCB since July 2010.
For the year 2012, SCB reported total assets of USD 637 billion and return on equity of 12.8 percent.
By Jennifer Young, Research Associate
About Janalakshmi Financial Services (JFS)
Janalakshmi Financial Services Private Limited (JFS) is a microfinance institution (MFI) located in India. It is focused primarily on offering loans, savings and microinsurance in urban areas. As of March 2013, JFS reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 196 million, a gross loan portfolio of USD 177 million, 696,000 active borrowers, return on assets (ROA) of 1.97 percent and return on equity (ROE) of 8.64 percent. JFS does not accept deposits.
About Ujjivan Financial Services
Ujjivan Financial Services Private Limited is a microfinance institution (MFI) based in Bangalore, India, that offers loans and insurance products. It was founded in 2004 and focuses on serving low-income women in urban and semi-urban areas. Its products include business loans, educational loans, emergency loans and life insurance. As of March 2013, Ujjivan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 249 million, a gross loan portfolio of USD 207 million, 1 million active borrowers, return on assets (ROA) of 3.36 percent, return on equity (ROE) of 11.79 percent and 855,000 active borrowers. Ujjivan does not accept deposits.
About Standard Chartered Bank
Founded in 1969, Standard Chartered Bank is a financial services company based in the United Kingdom. For the year 2012, SCB reported total assets of USD 637 billion and return on equity of 12.8 percent. It has also invested a total of USD 1 billion in various microfinance institutions in Asia and Africa over an unspecified period.
Sources and Additional Resources
Information provided to MicroCapital by Standard Chartered Bank.
MicroCapital Story, July 4, 2013, “MICROCAPITAL BRIEF: Standard Chartered Bank (SCB) Loans $5.7m to Bank Andara to Support Microfinance Institutions (MFIs) in Indonesia,” https://www.microcapital.org/microcapital-brief-standard-chartered-bank-scb-loans-5-7m-to-bank-andara-to-support-microfinance-institutions-mfis-in-indonesia/
MicroCapital Story, March 13, 2013, “MICROCAPITAL BRIEF: Asian Development Bank, Standard Chartered Bank Commit $150m to Microfinance in Asia,” https://www.microcapital.org/microcapital-brief-asian-development-bank-standard-chartered-bank-commit-150m-to-microfinance-in-asia/
MicroCapital Story, April 1, 2013, “MICROCAPITAL BRIEF: Janalakshmi Financial Services (JFS) Partners with Manipal Global to Train JFS Employees,” https://www.microcapital.org/microcapital-brief-janalaskhmi-financial-services-jfs-partners-with-manipal-global-to-train-jfs-employee/
MicroCapital Story, November 5, 2012, “MICROCAPITAL BRIEF: Lack of Law and Order Causes Microfinance Institution (MFI) Ujjivan of India to Put Lending Operations on Hold in Parts of Bihar,”
https://www.microcapital.org/microcapital-brief-lack-of-law-and-order-causes-microfinance-institution-mfi-ujjivan-of-india-to-pull-out-of-state-of-bihar/
MicroCapital Universe Profile: Janalaskhmi Financial Services (JFS),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Janalakshmi+Financial+Services+%28JFS%29
MicroCapital Universe Profile: Ujjivan Financial Services,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ujjivan+Financial+Services
MicroCapital Universe Profile: Standard Chartered Bank,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Standard+Chartered+PLC
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