UTKARSH - VOICE UTKARSH MICRO FINANCE PVT. LTD.

October-December

Vol-3 Issue -3

Message from MD & CEO

Let me begin with wishing all a very happy, healthy, joyous and prosperous

new year 2012.

The year 2011 was truly an eventful year for all in the microfinance sector.

The events that started with the ordinance passed by AP Government in

October 2010 had impact on the sector so much so that the way

microfinance activities were run, have changed for all time to come.

There have been many directional guidelines from the regulator since then.

The recognition by the regulator to separate category of NBFC named NBFC

MFI is one of the greatest achievements in many years. Opening up of ECBs

for NBFC MFIs is a big boost to the sector. The industry bodies have also put

their acts in place. Harmonised Code of Conduct, thrust on credit bureau and

many other initiatives by MFIN will help the sector.

At Utkarsh, the team kept focussed on running operations on and off

ground, in a manner suited to all the stakeholders. We can be satisfied to

see that considering the developments in the sector, we managed our social

and financial goals well.

And, the Time has come to take fresh guard.....

With regularity clarity in place, processes re-visited, employee training is

taken care comprehensibly, social mission more appropriately defined,

untapped geography waiting for us to focus on providing financial and non

financial support to underprivileged segment of the society, let us move

forward with enhanced momentum in our journey with same zeal and

enthusiasm we started in August 2009.....

That is why I mentioned that time has come to take fresh guard. It is

time to prepare ourselves for a long sustainable inning.

We all will work towards making Utkarsh a place to be liked the most by our

members, investors, employees, funders. Yes, that is a big responsibility and

dear to our heart. With pride in what we do and the mission we have set for

ourselves, we invite all in achieving our goal

I started by mentioning that we had eventful year 2011. I would like to

conclude by saying that year 2012 will be impactful year for all of us.

Once again, wishing you all a very happy 2012...

First Social Rating

As per the mission and vision, the

company initiated social rating from

MCRIL, which is a premier rating

agency for the Micro Finance sector.

The company received α - (Alpha

minus) which indicates “Strong social

commitment, good systems, evidence

for good adherence to social mission

and values.” This rating is on a 8 point

scale with α + best & Gamma (γ)worst.

α -is 3 on a scale of 8.

The Strengths highlighted in the report

are :

� Experienced and socially

committed Board with focus on

the double bottom line.

� Good performance in client

protection principles; it is part

of training for staff, and are

reasonably documented in the

manuals and policies.

� Strong Internal audit and

monitoring systems with a

dedicated risk management

department; attempt to include

client protection and HR

aspects in the report.

� Systems fairly tuned to avoid

irresponsible lending –

participative business planning,

incentives capped for new

client addition.

� Client profile data is integrated

in the MIS. Monthly MIS reports

generated include social

outreach, along with

operational details.

� Good outreach – Operations in

poorer states; 55% of new

clients from SC/ST categories.

� Development services offered

to clients, along with credit,

though outreach is limited.

� Clients visited were mostly

satisfied with the loan product

and behaviour of the MFI staff.

Glimpses of Annual Day Function

Chief Guest Mr. H. P. Mathur

Inaugurating the Annual Day function

MD & CEO, Mr. Govind Singh,

Addressing the Audience

Launching of Company Profile – “Two

Years Journey”

OUTREACH

As on Dec 31,

2011

As on Sep 30,

2011

Outreach

No of States (UP & Bihar) 2 2

No. of Districts 17 14

Total No of Branches 67 57

No of Branches in UP 52 49

No of Branches in Bihar 15 8

Total No. of Centres 5,967 4,868

Total No. of Groups 19,423 16,007

Total No. of Members 84,220 67,847

Total No. of Clients 76,770 60,344

No of Clients Benefited 102,963 82,492

Performance

Total Disbursement - Cumulative (Rs in

Mn)

1,488.0 1165.4

Loan Outstanding (Rs in Mn)

(Own+Manage)

600.0 448.8

No. of Client/Credit Officer 390 318

On Time Repayment Rate (OTRR in %) 100% 100%

PAR>30 Days (In Rs) 29,011 21,147

Employee strength

Operations Staff 295 280

Total no of employees 352 332

Year on Year Growth

Quarter on Quarter Growth

Particulars As on Dec 31,

2011

As on Dec 31,

2010

Growth

Income from

Operation (Rs in

Mn)

90.9 47.5 91.4%

Profit Before

Tax (Rs in Mn)

11.3 3.1 264.5%

Particulars As on Dec 31,

2011

As on Sept 30,

2011

Growth

Income from

Operation (Rs in

Mn)

90.9 54.6 66.5%

Profit Before Tax

(Rs in Mn)

11.3 4.0 182.5%