Business Segment: MicroBanking

Serving people at the periphery of formal banking

We now serve over 4 Million financially unserved and underserved households with bespoke offerings. We aim to build a granular deposit base in this segment and deliver a hassle-free banking experience.

During the year, we focused on responsible collections practices, offering our customers a convenient alternative to centre meeting repayment such as 9,000+ outlets/touch points for repayment in the proximity of their locations that helped improve the repayment rate. We also supported our customers through loan moratoriums and restructuring.


41% y-o-y img

Gross loan book (OSP)

0.6% y-o-y img

Total deposits (including deposit of ₹163 Crores from rural branches)

27% y-o-y img

Total MicroBanking asset and deposit customers

img y-o-y growth

img y-o-y de-growth

  • Continued our focus on Sampoorna Family Banking by serving customers with a holistic range of products such as group loans, individual loans, savings/deposit products, two-wheeler loans, insurance, payment solutions, remittances, and so on
  • Launched gold loan, PM SVANIDHI loan and alternative service channels such as Money Mitra for proximity banking services
  • Partnered with Airtel Payments Bank outlets and PayNearby for repayments
  • Improved collections post lockdown and recorded over 99% collections efficiency in the non-overdue bucket
  • Disbursed highest-ever loan amount of ₹1,240+ Crores with highest-ever individual loans of ₹200+ Crores in March, 2021 and pre-approved loans worth ₹87.9 Crores in March, 2021
  • Created a deposit base of ₹1,029 Crores with a full range of services during the year
  • Introduced secured Agri product and Loan Origination System (LOS) for Agri Group Loan product

During FY 2020-21, we added no new brick-and-mortar branches. Kisan Pragati Card (Secured)—that was launched towards the end of FY 2019-20—scaled up with average monthly disbursals of ₹1.5 Crores, closing with a portfolio worth ₹7.5 Crores with 100% collections.

This segment closed FY 2020-21 with a loan portfolio outstanding of ₹678.8 Crores with 15% y-o-y growth and a borrower base of ₹2.32 Lakhs, while the liability book stood at ₹162. 8 Crores with 50% y-o-y growth.


Rural customer base as
on March 31, 2021

  • We actively promoted the use of digital channels such as SMS banking, mobile banking, phone banking, UPI and other digital repayment modes to ensure uninterrupted banking services to our customers.
    Digital initiatives undertaken include:
  • Opened additional CMS avenues for personnel to deposit cash collected in the field; a total of 37% of the EMI is routed through non-branch channels during FY 2020-21
  • Increased digital penetration with 5.5 Lakhs MicroBanking customers now registered on mobile banking and UPI platforms
  • Recorded steady adoption of UPI QR with monthly deposit inflow of ₹3.5 Crores
  • Launched Money Mitra for providing neighbourhood banking services to customers staying away from the branch. Celebrated the Money Mitra network reaching 200 agents, serving 1+ Lakh customers across the country in Q4 FY21
Going forward, we will also undertake the following digital initiatives
  • Launch special mobile banking application for MicroBanking with focus on voice, video and vernacular features for instant services
  • Expand UPI QR based payment solutions for merchants through UPI acquirer platform and our UPI PSP mobile app
  • Grow Money Mitra’s network for neighbourhood banking
  • We plan to launch paperless Loan Process based on E-Signature for easier and quicker processing of the loans


Customers paid EMIs through cashless
repayments during FY 2020-21


With the vaccination drive gaining momentum, the second COVID-19 wave is showing signs of tapering off. We are now geared to fast-track our assets and deposits segments, with special focus on individual loans for the asset business growth. We expect collections to normalise soon to the pre-COVID-19 level.

We will further scale up our business segments such as gold loans, Kisan Pragati Card (in new geographies), Agri Group Loan and digital initiatives (such as cashless repayment and Ujjivan pay). In the coming year, we will also launch segment-specific new mobile banking application and M-LAP.