Ujjivan Microfinance has stated that it takes strong objection to and completely disagrees with CRISIL’s decision to downgrade Ujjivan’s rating in a general, without any evaluation of individual organisational merits and demerits.
Ujjivan Operational Efficiency Improves
Ujjivan which currently operates in twenty states and union territories, and has no operations or loan exposure in Andhra Pradesh has a loan portfolio that has continued to improve even during this industry crisis. Ujjivan’s cumulative repayment rate has improved improved from 99% to 99.12% in November 2010.
Ujjivan Financial Services has consistently met all loan servicing requirements to it’s lenders on or before due date.
Ujjivan has continued to receive fresh funding from institutions both in India and overseas post-Andhra Ordinance and has not been affected by the current liquidity crisis.
Ujjivan has also pointed out that the contention that the Reserve Bank of India and Ministry of Finance have not been supportive of the microfinance industry especially those not operating in Andhra during this crisis is totally inconsistent with reality.
Ujjivan Microfinance has stated that it continues to enjoy strong business operations across twenty states in India, excellent portfolio quality, and more than sufficient liquidity to meet all it’s contractual loan servicing requirements. Under these circumstances, the decision to be generalised and categorised together with other MFIs and downgraded, is unwarranted and without merit.