COMPANY PROFILE

MICRO FINANCE INSTITUTIONS IN INDIA

Microfinance institutions (MFIs) are financial companies that provide small loans to
people who do not have any access to banking facilities. As microfinance institutions have
grown and professionalized over recent decades, their need for improved governance practices
has increased. The growing challenges and risks facing MFIs – including changing market
conditions, competition, technology – as well as the opportunities these also bring, all put more
emphasis on the need for appropriate structures and systems to oversee and manage risk. A
proactive, constructive board of directors, coupled with robust internal structures, is central to
this. Well-structured governance systems can help manage the tension generated by the MFI’s
double-bottom line, and are essential to help address complications arising from non-standard
shareholding structures.
Microfinance is the provision of financial services to low-income clients or solidarity lending
groups including consumers and the self-employed, who traditionally lack access to banking and related
services. It is not just about giving micro credit to the poor rather it is an economic development tool
whose objective is to assist poor to work their way out of poverty. It covers a wide range of services like
credit, savings, insurance, remittance and also non-financial services like training, counseling etc.
Microfinance Institutions (MFIs) in India exist as NGOs (registered as societies or trusts), Section 25
companies and Non-Banking Financial Companies (NBFCs). Commercial Banks, Regional Rural Banks
(RRBs), cooperative societies and other large lenders have played an important role in providing
refinance facility to MFIs. Banks have also leveraged the Self-Help Group (SHGs) channel to provide
direct credit to group borrowers.
Microfinance institutions serve as a supplement to banks and in some sense a better one too. These
institutions not only offer micro credit but they also provide other financial services like savings,
insurance, remittance and non-financial services like individual counseling, training and support to start
own business and the most importantly in a convenient way.
The borrower receives all these services at her/his door step and in most cases with a repayment schedule
of borrower’s convenience. But all this comes at a cost and the interest rates charged by these institutions
are higher than commercial banks and vary widely from 10 to 30 percent.
Some claim that the interest rates charged by some of these institutions are very high while others feel
that considering the cost of capital and the cost incurred in giving the service, the high interest rates are
justified.

Microfinance has always been a social enterprise having a conspicuous and inconspicuous
impact on the life of poor people. In May 2020, as reported by M2i and industry's association,
almost all MFIs (microfinance institutions) have provided moratoriums to borrowers when their
own portfolio was almost not covered by lenders; only 20 per cent of the MFIs received the
funding after March 20. It shows the social commitment of the MFIs.
TOP MFI’s IN INDIA
BANDHAN FINANCIAL SERVICE Pvt Lmt.
Bandhan Financial Services Limited is a Public incorporated on 03 August 1995. It is classified as Non-govt
company and is registered at Registrar of Companies, Kolkata. Its authorized share capital is Rs. 1,500,000,000
and its paid up capital is Rs. 1,278,211,070. It is inolved in Real estate activities with own or leased property.
[This class includes buying, selling, renting and operating of self-owned or leased real estate such as apartment
building and dwellings, non-residential buildings, developing and subdividing real estate into lots etc. Also
included are development and sale of land and cemetery lots, operating of apartment hotels and residential
mobile home sites.(Development on own account involving construction is classified in class 4520).]

Bandhan Financial Services Limited's Annual General Meeting (AGM) was last held on 26 August 2019 and
as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March
2019.Directors of Bandhan Financial Services Limited are Rajendra Kumar Ghose, Ranodeb Roy, Pankaj
Sood, Asoka Chatterjee, Shri Ram Meena, Yogesh Nanda Chand, Asit Pal, Vishwanath Prasad Singh, Bandhan
Financial Services Limited's Corporate Identification Number is (CIN) U70101WB1995PLC073339 and its
registration number is 73339.Its Email address is gaurav.mishra@bandhanmf.com and its registered address is
DN-32, Sector-V, Salt Lake City Kolkata WB 700091 IN.

Bandhan Financial Services Limited is the holding company of Bandhan Financial Holdings
Limited (NOFHC) which is the holding company of the Bandhan Bank. BFSL has no
relationship with Bandhan Bank except its investments of 99.85% in the equity of the holding
company of the Bandhan Bank.Bandhan (meaning togetherness) was born in 2001 under the
leadership of Mr. Chandra Shekhar Ghosh, a Senior Ashoka Fellow. The main thrust of Bandhan
is to work with women who are socially disadvantaged and economically exploited. Bandhan
works for their social upliftment and economic emancipation. To achieve the above objective,
Bandhan is basically engaged in the delivery of microfinance services to the poor women.

Bandhan has been engaged in the delivery of microfinance service for the last 13 years. The
model followed is individual lending through group formation. All microfinance activities are
carried under Bandhan Financial Services Limited (BFSL), incorporated under the Companies
Act, 1956 and also registered as a Non Banking Financial Company (NBFC) with the Reserve
Bank of India (RBI).
The microfinance operations started from Bagnan, a small village which is 60 kms away from
the city of Kolkata. In 13 years, Bandhan has travelled a wide geography of 22 States and Union
Territories with special focus on eastern and underdeveloped states of North East.
Bandhan’s commitment towards triple bottom-line values is strongly asserted by its
intervention in development activities. It believes that Microfinance is not the last word for
development of the poor. Aspiring to holistic development of the poor, Bandhan offers
development activities in crucial fields of education, health, unemployment, livelihood and the
like through its not-for profit entity. Besides, Bandhan also has a program exclusively for the
hard core poor (generally believed to be bypassed by microfinance).
Over a short span of 13 years of operation, Bandhan has received various accolades for the
efforts it is taking towards women empowerment and poverty alleviation. These awards are not
just mere awards but more of a motivation for the entire team to march ahead towards achieving
its mission and vision. Bandhan takes this opportunity to thank all those who have been
associated with Bandhan and have supported our endeavors in whatever way possible

SKS MICROFINANCE Ltd

SKS is a non-banking finance company that provides microfinance services for individuals and
businesses. SKS Microfinance was founded in 1998. SKS Microfinance's headquarters is located in
Hyderabad, Andhra Pradesh, IN 500 016. SKS Microfinance's CEO, Ramachandra Rao, currently has an
approval rating of 69%. SKS Microfinance has an estimated 10.0K employees and an estimated annual
revenue of 88.0M. Bharat Financial Inclusion Limited (formerly known as SKS Microfinance
Limited) BFIL is a banking & finance company (NBFC), licensed by the Reserve Bank of IndiaI.t was
founded by Vikram Akula, who served as its executive chair until November 2011. [3] The company's
mission is to provide financial services to the poor under the premise that providing financial services to
poor borrowers helps to alleviate poverty.[4][5] In 2013, the company operated across 17 Indian states.
SKS Microfinance offers life assurance and a variety of financial loans – income generation
loans; mid-term loans; long-term Loans; loans for purchase of products like cook-stoves, solar lights,
water purifiers, mobile phones, bicycles and sewing machines; and loans secured on gold jewellery.
[30] The company lists some of the social benefits of its financial product and service offerings as
"providing self-employed women financial assistance to support their business with enterprises, such as
raising livestock, running local retail shops called kirana stores, providing tailoring and other assorted
trade and services."[30] Loans were subsequently also offered to men, and for various reasons including
marriage expenses and to purchase seeds. [10]
SKs Microfinance follows the Joint Liability Group model. The methodology involves lending
to individual women, using five– member groups as the ultimate guarantor for each member. [31] Through
group lending, situations of adverse selection and moral hazard due to asymmetric information are better
managed.[32] "Social collateral" replaces asset collateral (which is lacking in the poorer segments of
society). Such a system works because India is still a highly community-centric society. The concept of
honour and respect within society is deeply rooted in Indian culture and willful default invites
condescending glances, humiliation and even ostracism. [33] In Nov 2015, SKS Microfinance Ltd has cut
interest rates by one percentage point to 19.75% on the loans it offers to low-income women borrowers,
making it the sole Indian microlender to offer loans at a rate below 20%.The move came after Reserve
Bank of India (RBI) decided to double the borrower limit for microfinance loans for less than 24 months.
Lower interest rates can attract more borrowers in an increasingly competitive market. Microfinance
companies, which had started lending at around 28-34% in 2010, are now able to charge lower interest
rates because of newer avenues to raise funds at lower cost and their ability to operate more efficiently
than before."SKS is the first company to charge sub-20% interest rates on the core income generating
loans," the company claimed in a statement on Friday. This is the fourth time SKS has reduced interest
rates since October 2014.

JANALAKSHMI FINANCE SERVICE Ltd (JSF)

JFS is the largest Micro Finance Institution (MFI) in India. JFS gave out its first loan in
October 2000, and currently serves over 5 million families across 259 cities in India. It
has over 16,000 employees, referred to as JanaNayaks. JFS has deep domain expertise in
banking and financial services with over 500 years of consolidated banking sector
expertise just among the senior management. It is an organization that is recognized
globally as one of the world’s innovative financial institutions working on the problem of
financial inclusion.

JFS is promoted by Jana foundation, which is an urban inclusion think-tank based in

Bengaluru with a vision to transform urban India where financial inclusion and enhanced
quality of life are assured to all those who aspire to help themselves.

The Foundation undertakes various activities that deepen understanding of financial

inclusion and its many challenges. It addresses policy issues through its financial
advisory services; education, skilling, livelihood initiatives, community connect activities
in order to help customers to improve the quality of their lives and help them meet
customer needs comprehensively.

In March 2016, JFS was recognized and awarded as the ‘Best Financial Services firm in
India’ by VC Circle. In 2017, JFS was also featured in ‘Fortune – The Top500’ largest
corporations in India. Janalakshmi Financial Services Limited (JSF)
JFS is the largest Micro Finance Institution (MFI) in India. JFS gave out its first loan in
October 2000, and currently serves over 5 million families across 259 cities in India. It
has over 16,000 employees, referred to as JanaNayaks. JFS has deep domain expertise in
banking and financial services with over 500 years of consolidated banking sector
expertise just among the senior management. It is an organization that is recognized
globally as one of the world’s innovative financial institutions working on the problem of
financial inclusion.

JFS is promoted by Jana foundation, which is an urban inclusion think-tank based in

Bengaluru with a vision to transform urban India where financial inclusion and enhanced
quality of life are assured to all those who aspire to help themselves.

The Foundation undertakes various activities that deepen understanding of financial

inclusion and its many challenges. It addresses policy issues through its financial
advisory services; education, skilling, livelihood initiatives, community connect activities
in order to help customers to improve the quality of their lives and help them meet
customer needs comprehensively.

In March 2016, JFS was recognized and awarded as the ‘Best Financial Services firm in
India’ by VC Circle. In 2017, JFS was also featured in ‘Fortune – The Top500’ largest
corporations in India.
SKDRDP
Shri Kshethra Dharmasthala Rural Development Project, popularly known as SKDRDP, is a
charitable trust promoted by Dr. D. Veerendra Heggade. SKDRDP concentrates on the empowerment of
people by organizing Self-help Groups (SHGs) on the lines of Joint Liability Groups (JLGs) and provides
infrastructure and finance through micro credit for the rural people.
The Shri Kshethra Dharmasthala Rural Development Project encompasses all aspects of enriching the
rural life. It is currently expanding its developmental activities to all the districts of Karnataka. SKDRDP
is active with its Community Development Programs throughout the state. The core strengths of the
organization are the blessings of its promoters, dedicated band of workers, good will of the stakeholders
and above all a comprehensive program to better the living environment of the chosen areas. During the
Financial year 2015-16 SKDRDP has extended its area of operation to cover the state of Karnataka
completely.
SKDRDP® is registered under the Charitable Trust Act of 1920 in the office of Sub-Registrar,
Government of Karnataka, Belthangady Taluk, Dakshina Kannada District in the year 1991.
SKDRDP began to play its role in transfer of technology, providing infrastructure, and providing finance
through micro credit. Besides, the project concentrated on the empowerment of rural women and hence
began 'Jnanavikasa Program'. In response to the social needs of the area the SKDRDP innovated into
activities like Janajagruthi, Community Development, Siri etc.
At the time of inception, a village-level worker known as 'Sevaniratha' would approach the stakeholder
families, sit with them to prepare a five year development plan and assist them to implement the same.
The Dharmasthala temple has given the required material support like equipment, seed materials on a
charity basis. In keeping with the HR policy of the organization, the supervisory staffs were promoted
from the sevaniratha cadre in the prevailing areas. This provided a great opportunity for the youngsters to
show their oraganisational skills in the new area. Now sevaniratha are replaced by Sevaprathinidhis.
In order to give opportunities to the housewives and unemployed young women in rural areas who have
time and inclination to do social work, SKDRDP has developed a new cadre called the Sevaprathinidhi,
who work in their spare time and support the SHG movement in the village. Most sevaprathinidhis are
women and this has positively affected women men ratio in the organisation. Now sevaniratha are
replaced ecompletely by Sevaprathinidhis.
Large quantities of rice was distributed during the initial decades as a compensation for the families while
they worked in their own lands. The concept of 'Food for work' was implemented by SKDRDP, with a
view to develop the lands.  Thus the initial decade of SKDRDP can be considered as the charity phase.

In the early 90s, on review of the project, it was realised that mere charity does not give the
desired result. Hence SKDRDP adopted the self-help mode by organizing Self-help Groups
(SHGs), more on the lines of Joint Liability Groups (JLG).

UJJIVAN FINANCIAL SERVICE Ltd.

Ujjivan Financial Services Limited started operations as an NBFC in 2005 with the mission of providing a full
range of financial services to the economically active poor who are not adequately served by financial
institutions

Ujjivan's erstwhile business was primarily based on the joint liability group lending model for providing
collateral free, small ticket-size loans to economically active poor women. We had also offered individual
loans to Micro & Small Enterprises ("MSEs"). Ujjivan had adopted an integrated approach to lending, which
combines a high customer touch-point typical of microfinance, with the technology infrastructure and related
back-end support functions similar to that of a retail bank.

On October 7, 2015, Ujjivan received an in-principle approval from the RBI to set up a Small Finance Bank
and floated its wholly owned subsidiary ‘Ujjivan Small Finance Bank Limited’. The Company transferred its
business to Ujjivan Small Finance Bank which subsequent to the RBI licence commenced its banking
operations from February 01, 2017. Ujjivan Small Finance Bank Ltd. is also included in the Second Schedule
to the Reserve Bank of India Act, 1934.

Subsequent to the transfer of business, as mandated by the RBI, Ujjivan Financial Services Limited got itself
registered as a Core Investment Company (NBFC-NDSI-CIC). Its main objects are to carry on the business of
making investments in group company(ies) in the form of securities and providing guarantees etc. and to carry
on financial activities, whether in India or outside, in the nature of investment in bank deposits, money market
instruments (including money market mutual funds and liquid mutual funds), The micro-credit program of
Spandana started in 1997 when Spandana operated as a Society (Spandana Urban and Rural development
Organisation – SURDO). Later, it formalized itself into an NBFC (SSFL). Spandana’s lending
programme is committed to strengthening the socio-economic status of low-income households –
particularly women – in rural and urban areas by providing financial services on a continual basis in order
to improve livelihoods, establish identity and enhance self-esteem. Spandana follows both the group
based and the individual micro-credit lending model wherein both the models, the loans are given to
individuals based on their household economics. Besides micro-credit, it has other products – like – Farm
Equipment, loans against Gold jewellery etc. securities, and to carry on such other activities as may be
permitted and prescribed by the relevant statutory authorities for core investment companies from time to time.

As a part of its on-going CSR initiatives, Ujjivan is partnered with Parinaam Foundation which undertakes the
community development programs, educational programs and financial literacy programs across many places
in India.

SPANDANA SPHOORTY FINANCIAL LIMITED

Spandana Sphoorty Financial Limited is a Public incorporated on 10 March 2003. It is classified as Non-govt
company and is registered at Registrar of Companies, Hyderabad. Its authorized share capital is Rs.
21,500,000,300 and its paid up capital is Rs. 643,154,820. It is inolved in Other financial intermediation. [This
group includes financial intermediation other than that conducted by monetary institutions.]

Spandana Sphoorty Financial Limited's Annual General Meeting (AGM) was last held on 11 July 2019 and as
per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2019.
Directors of Spandana Sphoorty Financial Limited are Abanti Mitra, Deepak Calian Vaidya, Kartikeya Dhruv
Kaji, Jagdish Capoor, Padmaja Gangireddy, Sunish Sharma, Darius Dinshaw Pandole, Ramchandra Kasargod

The micro-credit program of Spandana started in 1997 when Spandana operated as a Society (Spandana
Urban and Rural development Organisation – SURDO). Later, it formalized itself into an NBFC (SSFL).
Spandana’s lending programme is committed to strengthening the socio-economic status of low-income
households – particularly women – in rural and urban areas by providing financial services on a continual
basis in order to improve livelihoods, establish identity and enhance self-esteem. Spandana follows both
the group based and the individual micro-credit lending model wherein both the models, the loans are
given to individuals based on their household economics. Besides micro-credit, it has other products –
like – Farm Equipment, loans against Gold jewellery etc.

Equitas Small Finance Bank

Equitas Small Finance Bank is a small finance bank founded in 2007 by Equitas as a microfinance lender,
with headquarters in Chennai, India.[2] After receiving license from the Reserve Bank of India (RBI) on
30 June 2016,[3] Equitas began banking on 5 September 2016 as a subsidiary of holding company Equitas
Holdings Ltd.[4] With effect from 4 February 2017, Equitas became a scheduled bank.[5] However, the
company missed on RBI's mandate of listing within 3 years of commencement of its operations. Review
from the Securities and Exchange Board of India and RBI is awaited.
The proposal to set up the Equitas structure formed part of the Lloyd's "Reconstruction and Renewal"
(R&R) plan. It was accepted by 90% of the 34,000 "Names" who had underwritten policies at Lloyd's,
and it became mandatory for all members to reinsure their non-life insurance liabilities into Equitas on
business allocated to the 1992 and prior years of account. When Equitas started it had £15  billion of
liabilities at net present value, which were expected to take up to 40 years to settle. It also had assets
amounting to 105% of the liabilities, making it the largest start-up company to date. Equitas is not
allowed to take on new business but it remains the largest solvent run-off reinsurer globally.Equitas is run
by directors and owned by four trustees who hold the shares on behalf of those who reinsured their
liabilities into it.
According to its 2016 reported accounts, it holds total assets and total liabilities of £4.768 billion, of
which £3.877 billion is allocated to liabilities in the United States. The company believes its assets are
adequate to pay its liabilities in full but the accounts are qualified because of the inherent uncertainty in
quantifying the liabilities.

Satin Creditcare
Satin Creditcare Network Limited (SCNL or “Satin”) was conceptualized and founded in 1990 by Mr. H
P Singh - a qualified Chartered Accountant with over three decades of experience in retail finance
industry. In around 28 years since its inception, Satin today is India’s second largest MFI (as of March
2018) having started its journey with individual micro loans to urban shopkeepers. Today, the Company
has an established, scalable and a sustainable business model. On a consolidated basis, Satin had an AUM
of Rs. 6025.7 Crores as on June 31, 2018. SCNL offers its clients a variety of loan products under the
MFI segment. The company also offers a bouquet of financial products in the Non-MFI segment
comprising of loans to MSMEs and business correspondent services & similar services to other financial
Institutions through Taraashna Services Limited (TSL) a business correspondent company and a
subsidiary of SCNL. In April 2017, SCNL also incorporated a wholly owned housing finance subsidiary
for providing loans in the affordable housing segment. This is a logical extension of Satin’s mission to
provide financial products that cater to the undeserved segments of the market. As of March 2018, SCNL
had 1017 branches and a headcount of 9,368 across 18 states and union territories serving 30 lakhs
clients. SCNL has a strong presence throughout Uttar Pradesh, Bihar, Madhya Pradesh, Punjab, Assam,
West Bengal and Odisha and is a dominant player in other states of operations. In April 2017, SCNL also
incorporated a wholly owned housing finance subsidiary (Satin Housing Finance Limited or “SHFL”) for
providing loans to the affordable housing segment.