Humana People to People India crisil rating report 2013
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Transcript of Humana People to People India crisil rating report 2013
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: [email protected]
Mr. Vijayakumar S
Associate Director
Phone: +91 44 4226 3613
Email: [email protected]
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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 [email protected] 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
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mfR4
mfR5
mfR6
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mfR8
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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: [email protected]
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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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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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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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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