mfR4

Humana People to People India

Date Assigned July 8, 2013

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Analytical Contacts:

Mr. Yogesh Dixit

Senior Director

Phone: +91 22 3342 3037

Email: yogesh.dixit@crisil.com

Mr. Vijayakumar S

Associate Director

Phone: +91 44 4226 3613

Email: vijayakumar.s@crisil.com

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CRISIL MFI Grading

DISCLAIMER

CRISIL's microfinance institution (MFI) Grading reflects CRISIL’s current opinion on the ability of an

MFI to conduct its operations in a scalable and sustainable manner. In the case of NGO-MFIs and

entities with multiple businesses, CRISIL’s MFI Gradings apply only to their microfinance programmes.

The MFI Grading is a one-time exercise and the Grading will not be kept under surveillance. This

grading is valid for a period of one year from the date of assignment. However, CRISIL reserves the

right to suspend, withdraw, or revise the MFI grading at any time, on the basis of any new information

or unavailability of information or any other circumstances brought to CRISIL’s notice, which CRISIL

believes may have an impact on the grading. CRISIL recommends that the user of the Grading seeks a

review of the Grading if the graded institution/microfinance programme experiences significant

changes/events during this period which could impact the graded institution/its grading.

CRISIL MFI Gradings are based on the information provided by the Institution, or obtained by CRISIL

from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the

information on which the MFI Grading is based. CRISIL MFI Grading is not a recommendation to

purchase, sell or hold any financial instrument issued by the graded MFI, or to make loans and

donations / grants to the institution. The MFI Grading does not constitute an audit of the graded MFI by

CRISIL.

The MFI Grading Report and the information contained therein are the intellectual property of CRISIL.

The MFI Grading Report should not be reproduced or distributed or communicated directly or indirectly

in any form to any other person or published or copied in whole or in part, for any purpose or by any

means without the prior written permission of CRISIL. The MFI Grading should not be used for

mobilising deposits/savings/thrift/insurance funds/other funds (including equity) from their

members/clients or general public and should not be used in its external communications, promotional

materials or member/client passbooks. CRISIL is not responsible for any errors and especially states

that it has no financial liability, whatsoever, to the subscribers/ users/transmitters/distributors of its MFI

Gradings. For the latest information on any outstanding CRISIL MFI Gradings, please contact CRISIL

RATING DESK at CRISILratingdesk@crisil.com or at (+91-22)-3342 3047/3064.

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MICROFINANCE INSTITUTION (MFI) GRADING

MFI GRADING HISTORY None

mfR1 CRISIL’s microfinance institution (MFI) Grading is a current opinion on the

ability of an MFI to conduct its operations in a scalable and sustainable

manner. The MFI Grading is assigned on an eight-point scale, with ‘mfR1’

being the highest, and ‘mfR8’ the lowest. The MFI Grading is a measure of

the overall performance of an MFI on a broad range of parameters under

CRISIL’s MICROS framework. It includes a traditional creditworthiness

analysis using the CRAMEL approach, modified to be applicable to the

microfinance sector. The acronym MICROS stands for Management,

Institutional arrangement, Capital adequacy and asset quality, Resources

and asset-liability management, Operational effectiveness, and Scalability

and sustainability.

MFI Grading scale: mfR1 - highest; mfR8 – lowest

mfR2

mfR3

mfR4

mfR5

mfR6

mfR7

mfR8

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CRISIL MFI Grading

FACT SHEET

Name of the MFI Humana People to People India (HPPI)

Date of incorporation 1998

Year of commencement

of microfinance

programme

November 2007

Legal status Registered under Section 25 (not for profit) of the Companies Act, 1956

Promoters Dr. Akula Padmavathi and HPP Society

Chief executive Mr. Snorre Westgaard, Executive Director

Registered office and

contact details

Mr. Sudhanshu Shekhar, Head, Microfinance

111/9-Z, Kishangarh, Aruna Asaf Ali Marg

Vasant Kunj

New Delhi - 110 070

Tel: +91 11 3294 7734

Email: sudhanshu.humana@gmail.com

Website: www.humana-india.org

Bankers SIDBI, RMK, Indian Bank, and NABARD

Statutory auditors V Sankar Aiyar & Co., New Delhi

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ABOUT THE MFI

As on May 31, 2013

Lending model Lends to women organised as joint-liability groups (JLGs)

Products

Microfinance loans:

o Income generation loans: Loan amount range from

Rs.10,000 to Rs.15,000 per member, at 24.00 per cent per

annum (declining basis), to be repaid in 25 fortnightly

instalments.

o Income generation loans (RMK loans): Loan amount range

from Rs.10,000 to Rs.15,000 per member, at 18.00 per cent

per annum (declining basis), to be repaid in 25 fortnightly

instalments. These loans are provided exclusively to JLGs

in Bansur village of Alwar district.

o Mid-term loans: Loan amount range from Rs.5,000 to

Rs.10,000 per member, at 24.00 per cent per annum

(declining basis), to be repaid in 25 fortnightly instalments

(provided after completion of 12 fortnightly instalments of

IGL)

Processing fee: 1.00 per cent of the loan disbursement

Life insurance: This is offered in alliance with IDBI Life Insurance

(covering the member and spouse)

Borrower base 14,979 borrowers (13,497 as on March 31, 2013)

Employees 87 (80 as on March 31, 2013)

Number of branches 7

Loan outstanding

Rs.130.65 mn (Rs. 124.39 as on March 31, 2013)

Loans disbursed Rs.30.90 million in 2013-14 (from April 1 to May 31)

Rs.198.11 mn during 2012-13 (refers to financial year, April 1 to

March 31)

Geographical reach Three districts of Rajasthan and one district of Uttar Pradesh

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CRISIL MFI Grading

SOCIAL AND TRANSPARENCY INDICATORS

As on March 31, 20123 in per cent

Average loan outstanding/per capita GNI (2011 figure)* 13.00

Women staff/total staff 1.25

Women borrowers/total borrowers 100.00

Effective lending rate 24.00

Are interest rates (on declining basis) communicated to clients in writing? Yes

Are processing charges communicated to clients in writing? Yes

Does the MFI provide an official receipt to clients after repayment collections? Yes

Is access to loan of other MFIs a parameter to select/screen clients? Yes

Is access to loan of other MFIs/residual income a factor in appraising the client’s

repayment capacity? Yes

Does the MFI appraise the client's income/poverty/asset level and use this data to target

other low-income clients? Yes

Does the MFI capture and analyse reasons for client drop-out rate? Yes

Are clients provided head office contact details as part of the grievance redressal

mechanism? Yes

#Details are as provided by the MFI and not verified by CRISIL

*Per capita Gross National Income (GNI) is based on current prices

Source: CRISIL Centre for Economic Research (CCER) computations based on Central Statistical Organisation (CSO)

data

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Board of Directors (as on March 31, 2013)

Name Designation Profile

Dr. Akula Padmavathi

Chairperson She has a doctorate degree in Medicine and has been involved in the development sector globally for over two decades. Director in several Boards of RMK and other NGOs. She has been the Chairperson of HPPI since 2000.

Mr. Sanjeev Bhatt

Director He has a Masters Degree in Botany and has undertaken basic management course from the Frontline Institute of Management in Zimbabwe. He has been involved in various projects of HPPI since 2000

Mr. Manoj Kumar Singh

Director He has a degree in Bachelor of Commerce and has a Masters in Social Work. He has a managerial experience in community mobilisation, training and community development programmes and microfinance.

Mr. Kailash Khandelwal Director He has a degree in Bachelor of Arts. He has vast experience in implementing numerous developmental projects in HPPI. He worked in HPPI as a Top Negotiator Partnership and National Program Manager.

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CRISIL MFI Grading

Senior Management (as of March 31, 2013)

Name Designation Qualification Experience

Mr. Snorre Westgaard

Executive Director

Graduation in Psychology Diploma in Management

He has over two decades of experience in the development sector, globally. He has been involved with HPPI since 2004.

Mr. Raj Kumar Singh

General Manager, Operations

Master in Social Welfare (MSW), LLB, BA

He has Extensive experience across various development areas and has over ten years experience in Humana. He is instrumental in Microfinance project initiation and development in HPPI.

Mr. Sudhanshu Shekhar

Head, Microfinance

PGDRM, BA (Hons) He has over 14 years managerial experience, including over six years of experience in development and microfinance sector. Previous assignments with BASIX Consulting, M-CRIL, Intellecap, KAS Foundation, and GE Capital

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OUTREACH SUMMARY

For the year ended/As on Unit May-13 Mar-13 Mar-12 Mar-11

Groups No. 3,577 3,138 1,727 1,160

Members No. 17,555 15,300 8,104 6,210

Borrowers No. 14,979 13,497 7,760 5,579

Districts covered No. 4 4 2 1

Branches No. 7 7 4 4

Disbursements Rs.Mn 30.90 198.11 136.23 26.85

Women borrowers % 100.00 100.00 100.00 100.00

Loan outstanding (own) Rs.Mn 58.32 57.04 60.73 33.22

Loan outstanding (managed) Rs.Mn 72.33 67.35 - -

Total loan outstanding Rs.Mn 130.65 124.39 60.73 33.22

PRODUCTIVITY INDICATORS

As on/Period ended Unit May-13 Mar-13 Mar-12 Mar-11

Total employees No. 87 80 59 30

Credit officers No. 55 52 52 25

Members/branch No. 2,508 2,186 2,026 1,553

Borrowers/ branch No. 2,140 1,928 1,940 1,395

Borrowers/Members % 85.00 88.00 96.00 90.00

Loan outstanding/branch Rs. mn 18.66 17.77 15.18 8.31

Loan outstanding/credit officer Rs. mn 2.38 2.39 1.17 1.33

Members/credit officer No. 319 294 156 248

Borrowers/credit officer No. 272 260 149 223

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CRISIL MFI Grading

MFI GRADING RATIONALE CRISIL’s microfinance institution (MFI) grading assigned to Humana People to People India (HPPI)

reflects the following strengths:

Strong support from the parent organisation (the Federation)

Experienced senior management

Adequate capitalisation levels with average asset quality

Systems and process commensurate with size of operations

The listed grading strengths are partially offset by the following weaknesses:

Limited resource profile

Below-average cash management practices

Geographic concentration of loan portfolio

Profile

HPPI was registered in 1998 as Section 25 Company with its head office in New Delhi.

Since 1998, HPPI has been involved in various developmental activities including HIV/AIDS

Awareness, Teacher Training, Vocational Training Centers, Community Development Project,

Environmental Projects and others across the country. Currently, HPPI executes around 40

projects in 7 states in India, which are carried out in partnership with National and International

partners, including state agencies. Its major partners include USAID, UNICEF, World Bank, WWF,

Ministry for Foreign Affairs (Finland), Central Government, State Government (Delhi, Rajasthan,

UP, Haryana, and Chhattisgarh), and Humana Federation Members (Europe, Africa, and Latin

America).

HPPI is the member of the Federation for Associations connected to the International Humana

People to People Movement which works in 43 countries. The Federation for Associations

connected to the International Humana People to People Movement (Federation) is based out of

Geneva (Switzerland) and its administrative headquarters in Harare (Zimbabwe). The federation,

which has 35-member organisations in 43 countries over 5 Continents, is one of the main donors

in HPPI’s development projects. The federation also provides technical assistance, liaison

assistance and project support services to HPPI.

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HPPI commenced its microfinance programme in November 2007 in Bansur block of Alwar district,

Rajasthan. HPPI follows JLG based lending approach and extends loan to women borrowers. As

on May 31, 2013, HPPI’s microfinance programme had 17,555 members (14,979 borrowers) and

loan outstanding of Rs.130.65 million.

As on May 31, 2013, HPPI had eight branches across three districts (Alwar, Sikar, and Jaipur) of

Rajasthan and one district (Badaun) of Uttar Pradesh with loan outstanding of Rs.130.65 million to

14,979 borrowers.

Lending Methodology

HPPI before choosing an operational area conducts a field survey, which comprises study on

market potential, competition, political impact, and socio-economic profile of the region. The field

survey is undertaken by the field executive (FE) and the field survey report is documented and

discussed with the respective branch and area manager.

Once the operational area has been selected by the MFI, the FE conducts a projection meeting,

which involves orienting the targeted members about the organisation, its microfinance

programme, and concept of group liability, type of loan, interest rate, eligibility and repayment of

the loans. Only those women who are interested to become members are invited to the

subsequent meeting, during which, the women from same locality organise themselves into groups

with five members in each group.

After group formation, the FE collects the preliminary documents of all the members and the basic

data sheet of the members is sent to HO for credit bureau check. Then the FE conducts a four-day

compulsory group training (CGT) for each group regarding HPPI’s policy, and loan product and

repayment details. After completion of the four-day programme, group recognition test is

undertaken to ascertain whether all the members understood the organisation’s policies and

procedures.

All the filled application forms are verified by the branch manager and the final loan sanction is

done after proper due diligence. Once the loans are sanctioned, the disbursement requirement is

sent to HO by the branches and the funds are disbursed to the branches by HO as per the

requirement.

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CRISIL MFI Grading

MANAGEMENT

Systems and processes commensurate with current level of operations

The MFI has a loan tracking software in place with which it is able to

generate various analytical reports, including demand collection

sheets, portfolio at risk (PAR) reports, and progress reports (field

officer and branch level). All the branches are computerised and are

able to self-generate demand and collection sheets, and

reconciliation happens at HO on daily basis. Furthermore, HPPI’s

plan to implement mobile tracking device over the near term would

ensure data integrity and accuracy of operations.

HPPI also has an adequate credit approval mechanism, with all loan

sanctions are decentralised at the branch level. The branch manager

sanctions the loan after proper due diligence of all the applicants.

HPPI adheres to the Know Your Customer (KYC) norms and has

adequate level of documentation, which includes recording economic

status of individual borrowers and loans from other sources. It also

has a tie up with credit bureau (High Mark) for assessing the

indebtness level of prospective borrowers.

Apart from the regular monitoring by the branch manager, HPPI also

has one credit officer at each branch who is responsible for GRT,

monitoring, and inspection.

Though the MFI has a separate loan tracking software, CRISIL

opines that an integrated MIS and accounting software would enable

HPPI for efficient reconciliation and tracking of receivables. In

addition, CRISIL believes there is scope for improvement in terms of

capturing and assessing credit and attendance history of the

borrowers while appraising repeat loans.

Average internal audit function

The MFI has one-member internal audit team, which conducts audit

of all the branches (field and operations) on quarterly basis. The

audit covers various parameters, including record keeping,

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documentation, and compliance levels at fields and branch office. All

the related issues and findings are shared with the branches and the

compliance reports are sent by the branches after the completion of

the audit.

The IA function has scope for improvement in terms of planning and

documentation in order to ensure maximum coverage.

Weak cash management practices

The branches maintain high cash balances on week days and the

funds are deposited in banks at the end of the week. CRISIL has

observed high cash balances up to Rs.1 million been maintained for

disbursement purpose at the branch level on week days (Monday to

Friday). Also, there is no formal mechanism of having mandatory

requirement of approval for maintaining excess/overnight cash

balances at the branches.

The branches send the daily report and the MIS back-up to HO on

daily basis; however the reconciliation happens only on monthly

basis.

CRISIL believes that the high cash balances increases the scope of

theft/misappropriation and ineffective cash utilisation at the field

level. Furthermore, cash balances if utilised for short-term

investment purposes would enable HPPI to improve its earning

profile. HPPI also has scope for improvement in terms of

disbursement scheduling at the branches and planning of

disbursement of funds from HO to the branches.

Above-average HR management

The MFI has a separate HR department with a structured policy. It

recruits personnel by conducting personal interviews and written test.

All employees are covered by the provident fund, gratuity, and

insurance schemes. It has also recently implemented a structured

performance appraisal system customised to its MFI programme in

order to effectively assess the performance of its employees. HPPI

also had very low attrition rates for the past three years as compared

to other similar and mid-sized MFIs in India.

Extensive track record in social

HPPI has around 15 years of experience in social development

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development activities

activities including HIV/AIDS awareness, teacher training, vocational

training centers, community development project, environmental

projects and others across the country. Currently, HPPI executes 40

projects in 9 states in India, which are carried out in partnership with

national and international partners, including state agencies. This

would enable the MFI to expand and establish good social impact in

existing and new area of operations.

INSTITUTIONAL ARRANGEMENT

Strong parent support (the Federation)

HPPI is a member of the Federation for Associations connected to the

International Humana People to People Movement. The federation has

35-member organisations in 43 countries and it provides technical

assistance, liaison assistance and project support services to HPPI.

The federation has indicated that it would provide around 250,000 US

dollars per year up to 2015 for HPPI’s MFI programme. In CRISIL’s

opinion, support from the federation in terms of financials and

operations strengthens its position as compared to other MFIs in India.

Absence of microfinance and financial experts on the board

HPPI’s board consists of four members with extensive experience in

developmental work and community programmes. Dr. Akula

Padmavathi—the chairperson—has more than two decades of

experience in the fields of social development. She has been the

economic and social development Adviser to planning commission

(1987-90) and director of legal aid and public relations and

Communications for a decade. Mr. Snorre Westgaard—the executive

director—also has more than two decades of experience in the in the

development sector, globally.

However, the board lacks expert and professionals with finance and

microfinance background. CRISIL believes that HPPI would benefit in

terms of strengthening its resource raising ability if the board has

higher representation of members with core experience in

microfinance and banking.

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Experienced senior management

HPPI’s senior management team has professionals with adequate

experience in microfinance sector. CRISIL opines that HPPI’s

management has significantly strengthened its systems and processes

to manage the proposed growth. Mr. Sudhanshu Shekhar, head of

HPPI’s MFI programme, has over 14 years managerial experience,

including over six years of experience in development and

microfinance sector.

CAPITAL ADEQUACY AND ASSET QUALITY

Adequate capitalisation levels backed by financial support from the Federation

HPPI has adequate capitalisation levels to support the proposed

growth over the near-term:

o HPPI’s MFI programme had net worth of Rs.51.10 million

as on March 31, 2013, with capital adequacy ratio (CAR) of

81.14 per cent as on the same date.

o HPPI’s debt-to-equity ratio was low at 0.73 times as on

March 31, 2013 (not including managed portfolio).

HPPI is backed by the financial support from the federation. It has

received Rs.11.8 million grants from the federation during 2012-13 for

the MFI programme and has a strong commitment from the federation

of receiving around 250,000 US dollars per year up to 2015 for HPPI’s

MFI programme.

Average asset quality

HPPI’s asset quality remains average with an on-time repayment of

95.59 per cent and 97.51 per cent as on March 31, 2013 and May 31,

2013 respectively. It had portfolio at risk (PAR)>30 days of 2.19 per

cent and PAR>90 days of 2.03 per cent as on March 31, 2013, which

had deteriorated as compared to the previous year. Furthermore,

HPPI had no provisioning and write-off policy until 2013.

The borrower to member ratio has declined from 96.00 per cent during

2011-12 to 88.22 per cent during 2012-13. CRISIL believes asset

quality may further decline if HPPI is unable to raise adequate fund to

meet the demand of existing and new clients on a timely basis.

Microfinance borrowers are usually repeat customers and an MFI’s

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failure to provide credit on time often results in borrowers delaying

payments, which degrades asset quality.

Risk of geographic concentration

HPPI’s operations remains concentrated in three districts of Rajasthan

(around 95.00 per cent of total portfolio) with around 64 per cent of the

portfolio concentrated in single district (Alwar); leaving the MFI

exposed to the risks of social and political disturbances which may

affect the asset quality of the MFI. HPPI has recently expanded its

operations to two districts (Badaun and Bareilly) of Uttar Pradesh,

which would enable HPPI to reduce district level concentration of its

portfolio in the near term.

RESOURCES AND ASSET LIABILITY MANAGEMENT

Limited resource profile

HPPI has faced funding constraints in the recent past; in 2012-13 the

NGO-MFI mobilised only Rs.20.00 million as subordinated debt and

received Rs.78 million borrowings from a private bank under BC

model. Similarly in 2011-12 it was able to mobilise only Rs.23 million

from two sector specific lenders. As on March 31, 2013, HPPI had

borrowings of Rs.37.35 million (excluding managed portfolio) from four

lenders with the highest borrowing from one lender being 70.65 per

cent as on the above-mentioned date.

HPPI has around Rs.100.00 million funds in pipeline to be mobilised

from a public sector bank and a sector specific lending institutions.

Furthermore, HPPI is also proposed to finalise the agreement with

apex MFI to receive Rs.40.00 million under a special project wherein

the expansion costs will be funded by SIDBI. Owing to the above

factors, CRISIL believes that the resource profile of HPPI to improved

over the near term.

During 2012-13, HPPI has entered into an agreement with a private

bank for the business correspondence (BC) model and around

Rs.98.00 million has been disbursed under the model during the same

period. The loan outstanding under this model was Rs.67.35 million as

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on March 31, 2013.

Low cost of borrowings

HPPI’s average cost of borrowings was at 10.90 per cent for the year

ended March 31, 2013. This is marginally lower than that of similar-

sized MFIs as it could mobilise low-interest bearing funds from apex

MFIs and sector specific funder.

Comfortable asset-liability maturing profile

A major portion of HPPI’s bank borrowings have tenure of 12 months,

while its loans have an average maturity of 36 to 60 months. Thus, the

HPPI is not susceptible to an immediate negative asset-liability

mismatch, and its mid-term liquidity is adequate to service its debt

obligations in a timely manner.

OPERATIONAL EFFECTIVENESS

Moderate field productivity levels

HPPI’s field productivity indicators have improved during 2012-13.

o The loan outstanding per credit officer increased to Rs.2.39

million as on March 31, 2013, from Rs.1.17 million as on

March 31, 2012.

o Loan outstanding per branch increased to Rs.17.77 million as

on March 31, 2013, from Rs.15.18 million as on March 31,

2012.

o There has been increase in the field productivity on account of

expansion of branches and growth in the loan portfolio.

Expected pressure on the earning profile

The operating expense levels of HPPI remained high at 11.99 per cent for

the year ended March 31, 2013. The MFI also provides free

accommodation to all its employees at the branches and there is no

rationalisation of the expenses of HPPI’s MFI program and other social

development programmes. The operational self sufficiency (OSS) of HPPI

stood at 116.81 per cent during 2012-13.

However, CRISIL believes that HPPI’s operating expense levels are

expected to increase on account of its expansion to other states, opening

new branches and increase in its cost of funding for the proposed

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incremental borrowings over the near term. Moreover, any adverse impact

on the asset quality would also impact its profitability over the near to

medium term.

SCALABILITY AND SUSTAINABILITY

HPPI’s credit plus activities over a decade in underdeveloped states

would enable the NGO-MFI to expand and establish good social impact

in existing and new area of operations. Further, HPPI’s strong linkage

with the Federation of HPP would enable the MFI to achieve the

proposed growth in the near term.

HPPI has formed another Section 25 Company for its microfinance

program in the name of Humana People to People Microfinance. It is in

the process of obtaining consent from its lenders for transferring the

liabilities in the new organisation. HPPI has adequate managerial

experience, capitalisation levels and processes and systems in place to

enable HPPI to scale and sustain its operations in the long run.

CRISIL believes HPPI’s sustainability would be dependent upon its ability

to leverage on the BC model, diversify its area of operations, strengthen

its cash management practices, and resource raising capacity.

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BUSINESS INDICATORS

21%

71%

2%6%

Borrowing profile as on March 31, 2013

RMK

SIDBI

NABARD

Basix IGS

0

10

20

30

40

50

0

50

100

150

200

250

Mar-11 Mar-12 Mar-13

Th

ou

sa

nd

s

Rs

. millio

n

Business growth

Loan outstanding Disbursements Borrowers(RHS)

0

1

1

2

2

3

Mar-11 Mar-12 Mar-13

Pe

rce

nt

Asset quality

PAR>30 days PAR>90 days

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

10

20

30

40

50

60

Mar-11 Mar-12 Mar-13

Capital adequacy

Net worth Capital adequacy(%)

0

100

200

300

0.00

10.00

20.00

Mar-11 Mar-12 Mar-13

Productivity

Loan O/S/ branch Loan O/S / credit officer Borrowers / credit officer

Rs

. millio

n

Inn

um

be

r

64%

12%

19%

5%

District wise loan outstanding as on May 31, 2013

Alwar

Sikar

Jaipur

Badaun

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FINANCIAL INDICATORS

Income and expenditure statement

Rs. million

For the year ended March 31, 2016 2015 2014 2013 2012 2011

Projected Provisional Audited

Fund based income

Interest income from loans 80.89 59.60 36.57 13.32 12.03 6.70

Income from investments /bank deposits 4.48 3.45 1.92 - - -

Total fund based income 85.37 63.05 38.48 13.32 12.03 6.70

Total interest and finance charges paid 27.38 20.35 13.98 4.04 4.19 3.19

Gross spread 58.00 42.71 24.50 9.28 7.84 3.50

Fee based income

Processing and admin fees 6.20 5.94 5.27 1.98 1.49 1.47

Agency and SHG formation charges 48.02 47.83 30.83 - - -

Other income 0.49 0.49 0.49 0.50 0.67 1.06

Total fee based income 54.72 54.26 36.59 2.48 2.16 2.53

Total income 140.09 117.31 75.08 15.81 14.19 9.23

Gross surplus 112.72 96.97 61.10 11.77 10.00 6.03

Expenses

Personnel expenses 50.87 45.82 33.48 1.78 4.02 2.31

Administrative expenses 8.91 7.57 5.18 7.71 2.96 1.82

Total expenses 59.78 53.39 38.65 9.49 6.98 4.13

Write-offs and provisions 8.87 8.61 7.75 - 0.61 -

Depreciation 1.59 1.56 1.24 - - -

Operating surplus 42.48 33.41 13.44 2.27 2.42 1.91

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Balance sheet

Rs. million

As on March 31, 2016 2015 2014 2013 2012 2011

Projected Provisional Audited

Liabilities

Equity/contribution from HPPI 115.78 82.36 58.92 48.83 30.47 17.41

Profit during the year 42.48 33.41 13.44 2.27 2.42 1.91

Net worth 158.26 115.78 72.36 51.10 32.89 19.32

Institutional borrowings 202.50 234.88 115.23 37.35 36.78 48.56

Total long term borrowings 202.50 234.88 115.23 37.35 36.78 48.56

Provision (bad debts & Loan loss) 10.45 7.34 4.37 - 0.61 -

Other current liabilities 0.88 0.88 0.88 4.87 1.02 0.41

Total current liabilities 11.32 8.22 5.25 4.87 1.63 0.41

Total liabilities 372.08 358.88 192.85 93.32 71.29 68.29

Assets

Loans and advances 334.68 320.45 155.69 57.11 60.81 33.22

Loans outstanding 334.68 320.45 155.69 57.11 60.81 33.22

Deposits with banks 30.37 30.37 31.41 19.65 6.16 5.73

Cash & bank balances 2.29 4.62 0.95 10.69 4.00 21.16

Total current assets 2.29 4.62 0.95 10.69 4.00 21.16

Total funds deployed 367.34 355.45 188.06 87.45 70.97 60.11

Other current assets 0.34 0.34 0.34 2.85 0.07 6.65

Net fixed assets 4.40 3.09 4.45 3.02 0.26 1.54

Total assets 372.08 358.88 192.85 93.32 71.29 68.29

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Key Financial Ratios* in per cent

Year ended March 31, 2016 2015 2014 2013 2012 2011

Projected Provisional Audited

Yield

Fund based yield 23.62 23.20 27.94 16.82 16.95 16.42

Portfolio yield 24.70 25.03 34.37 22.60 19.78 25.71

Fee based income /Avg. funds deployed 15.14 19.97 26.56 3.14 3.04 6.21

Cost of funds

Interest paid/Average funds deployed 7.58 7.49 10.15 5.10 5.90 7.83

Interest paid/Average borrowings 12.52 11.62 18.33 10.90 11.38 9.98

Interest spread

Gross spread/Average funds deployed 16.05 15.71 17.79 11.72 11.05 8.59

Interest spread 11.10 11.58 9.61 5.92 5.57 6.44

Overheads Operating expense ratio 16.98 20.22 28.96 11.99 9.83 10.12

Personnel expense ratio 14.08 16.86 24.30 2.25 5.66 5.65

Administrative expense ratio 2.46 2.79 3.76 9.73 4.17 4.46

Profitability

Return on net worth 31.00 35.52 21.77 5.42 7.34 14.66

Return on funds deployed 11.75 12.30 9.76 2.87 3.40 4.68

Operational self sufficiency 143.52 139.83 121.81 116.81 120.52 126.07

Asset quality

Loan loss provisions / average loan outstanding 3.19 3.08 4.11 - 1.29 -

Capitalisation

Total debt/net worth (times) 1.28 2.03 1.59 0.73 1.12 2.51

Capital adequacy 46.63 35.75 45.09 81.14 53.80 46.66

*Not adjusted for off-balance sheet liabilities

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Annexure

1. Borrowing profile as on March 31, 2013 ............................................................. 24 2. Asset Quality ........................................................................................................ 25

3. District-wise loan outstanding as on May 31, 2013 ............................................. 25

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1. Borrowing profile as on March 31, 2013

Rs. Million

S. No. Name of lenders Amount

1 Rashtriya Mahila Kosh (RMK) 8.00

2 SIDBI 26.39

3 NABARD 0.78

4 Indian Bank -

5 Basix IGS 2.18

6 Yes Bank (managed portfolio) 67.35

Total 104.70

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2. Asset Quality

May-13 Mar-13 Mar-12 Mar-11

Rs. mn % Rs. mn % Rs. mn % Rs. mn %

On time 127.39 97.51 118.90 95.59 60.69 99.93 33.22 100.00

Late (at least one payment)

1-30 days 0.63 0.48 2.76 2.22 0.02 0.04 - -

31-90 days 0.09 0.07 0.20 0.16 0.01 0.01 - -

91-180 days 0.18 0.14 0.28 0.23 0.01 0.02 - -

181-365 days 1.73 1.33 2.18 1.75 - 0.00 - -

1 year & above 0.62 0.47 0.07 0.06 - 0.00 - -

Total loan portfolio 130.65 100.00 124.39 100.00 60.73 100.00 33.22 100.00

PAR>30 days (% ) 2.01 2.19 0.03 -

PAR>90 days ( %) 1.94 2.03 0.02 -

3. District-wise loan outstanding as on May 31, 2013

District name Rs. Million Per cent

Alwar 83.71 64.07

Sikar 16.13 12.35

Jaipur 24.00 18.37

Badaun 6.81 5.21

Total 130.65 100.00

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