UTKARSH MICROFINANCE
Performance on key parameters
Has ramped up business considerably over the past three years; the loan portfolio and borrower base grew at CAGRs of 204 and 163 percent respectively during the 3 years ended March 31, 2013. Operations are however concentrated in Uttar Pradesh, which accounts for nearly 60 percent of its loan portfolio as on September 30, 2013 The asset quality has been healthy. The collection efficiency has been maintained at close to 100 percent. However, the ability to maintain healthy asset quality once portfolio growth stabilizes at industry-average rates will be critical Relies primarily on loans from banks and NBFCs for its funding requirement. Ability to diversify its resource profile and raise funds from debt and capital markets will help scale up business quickly Capitalization is comfortable; the gearing is low at 3.6 times as on March 31, 2013. Has demonstrated the ability to raise capital regularly to support growth Utkarsh’s profitability is moderate, primarily due to its high operating expense ratio. However, the benefits of a higher loan book will help improve operating efficiency going forward. Ability to operate profitably under the revised regulatory regime will be critical
