Incorporated in 2008, Suryoday Micro Finance Pvt Ltd (Suryoday) commenced full-fledged operations from May 2009. The company, engaged in providing group loans using the Grameen Bank model, has presence in around 70 branches spread across nearly 30 districts in the states of Maharashtra, Tamil Nadu, Gujarat, Odisha, Rajasthan, and Karnataka and had a loan portfolio aggregating Rs.282 crore as on January 31, 2014.
Performance on key parameters
- Suryoday’s portfolio outstanding and borrower base have grown at CAGRs of 114 and 85 per cent respectively during the 3 years ended March 31, 2013. Though the operations are concentrated in Maharashtra, the company has a presence in six states and is focused on improving its geographic diversity
- 30+ dpd has remained low during the past 18 months after rising sharply after the Andhra Pradesh crisis. The company has a presence in some districts of Andhra Pradesh
- Has relationship with more than 15 lenders as on September 30, 2013; also raises funds through securitisation on a regular basis
- Adequately capitalised for current scale of operations, with net worth of Rs.79 crore, and gearing of 2.5 times as on September 30, 2013. Has demonstrated ability to raise capital on a regular basis to support its growth plans
- Profitability though modest has been improving due to reduction in operating expense ratio. The return on managed assets improved to 1.1 per cent during 2012-13 from 0.5 per cent during 2011-12. However, ability to maintain improvement in its profitability over the medium term will be critical
Portfolio growth and trends in profitability