Arohan Financial Services

Arohan, a Kolkata-based company, began its microfinance programme in 2006. It was later acquired by IntelleCash Microfinance Network Company Pvt Ltd (IntelleCash) in September 2012 which holds a 56 per cent stake in Arohan. IntelleCash is a subsidiary of investment banking services and advisory firm, Intellectual Capital Advisory Services Pvt Ltd. Post-acquisition, the microfinance portfolio of IntelleCash was consolidated with Arohan.

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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 per cent 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 per cent 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 securitisation
  • Capitalisation comfortable for medium term growth plans; raised Rs.22 crore as capital in September 2013 after 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

arohan client base

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