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Last Update: Mon, May 21, 2012 7:36 AM IST (2:06 AM GMT)
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Bangalore: Indian microfinance company Ujjivan Financial Services Pvt Ltd plans to use the Rs 1.28 billion funds it had garnered recently to double its asset book to Rs 15 billion in the next three years, the Business Line reported citing Managing Director Samit Ghosh.
“The successful fund raising (Rs 1.28 bln) would also help us raise bank debts,” Ghosh told the newspaper.
The Bangalore-based micro lender had recently mobilized around Rs 1.28 billion ($25.5 million) in its fifth round of equity funding. Majority of the funds had come from two new foreign institutional investors -- Netherlands Development Finance Co and Wolfensohn Capital Partners L P -- while existing investors had also participated in this round of funding.
Ghosh further said that the company will continue to focus on lending to existing customers, while it has adopted a very cautious approach towards sanctioning loans to new customers following the financial turmoil microfinance institutions slipped into in the wake of a strict state legislation.
The microfinance industry plunged into a crisis after the government of Andhra Pradesh state -- the largest MFI market in the country -- introduced stringent norms in October 2010 to curb coercive recovery from micro-loan borrowers, leading to massive cases of defaults.
As of quarter ended December 31, Ujjivan Financial Services' outstanding loan portfolio was Rs 6.70 billion.
Established in 2005, Ujjivan Financial Services has 3,600 employees serving over a million urban and semi-urban poor clients through 302 branches in 20 states across India.
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Ujjivan Financial Services Pvt Ltd is an India-based non banking financial company. The company provides micro finance to poor women in urban areas. Presently the company operates 351 branches al ...
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