Arohan Financial Services

Written By Sushma Singh
Arohan Financial Services


Arohan predominantly operates in West Bengal and Bihar, extending microfinance loans using the joint liability group model with monthly and weekly repayment options.

The company had 63 branches with a loan portfolio outstanding of Rs.137 crore as on September 30, 2013.Performance on key parameters

  • Loan portfolio grew by 69 percent in 2012-13, after a brief period of consolidation post the Andhra
  • Pradesh crisis; most of the growth has happened following the takeover by IntelleCash in September 2012
  • 30+ dpd has declined sharply over the past 12 months and was nearly 1 percent as on April 30, 2013; this follows a sustained period of high delinquencies immediately after the Andhra Pradesh crisis
  • Has relationships with over 10 lenders comprising banks, NBFCs, and financial institutions for funding; also raises funds through securitization
  • Capitalization comfortable for medium-term growth plans; raised Rs.22 crore as capital in September 2013 after the first round of capital infusions by IntelleCash
  • Profitability remains modest, despite improvement. Ability to improve profitability as operations expand into low-income states like Uttar Pradesh, Jharkhand, Odisha, Chhattisgarh, and Madhya Pradesh will be critical

Arohan Financial Indicators


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