Arohan Financial Services

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