Taking Banking to the Last Mile

The core focus of our initiatives in the MicroBanking vertical is to improve the lives of individuals in the underserved sector. We are deeply committed to our objective of ensuring financial inclusion for the unserved and underserved sectors by granting them access to comprehensive banking facilities. We have a nationwide customer base of over 6 Million, and we cater to their specific needs by offering thoughtfully crafted products that address their requirements for financial security, liquidity, and convenient banking services.

17,401 Crores

Gross loan book

16,084 Crores


51% yoy
2,129 Crores


45% yoy
11.3 Lakhs

New customers on-boarded


Collection Efficiency (1 EMI+OD)

Growth in FY 2022-23 over FY 2021-22

We are creating immense value throughout the ecosystem through the unwavering dedication of our field staff, constant innovation, rapid digital adoption, and the continuous growth of our deposit base. With a strong foundation in the lending business and an extensive range of technology enabled banking services, we are seizing vast opportunities and capitalising on them effectively.

In Group Loan offerings, the primary focus during the last financial year was on being compliant with the latest regulatory framework. This involved implementing RBI guidelines on Micro-Finance, as well as making changes to the Household Bureau and Household Income Model. Additionally, we introduced the GLOW single flow to streamline the process and ensure data uniformity across systems. We also implemented a process to extend the benefits of advance EMI payments to customers and introduced individual processing of loans through separate product codes. To address the customers' needs regarding sanitation and hygiene, we introduced Water and Sanitation (WATSAN) Loans, enabling customers to construct necessary sanitation facilities in alignment with the Swachh Bharat mission of the Indian government.

In our Individual Loan offerings, we provide various types of loans to cater to the evolving needs of our customers. These include Business Loans (working capital for retailers), Livestock Loans (for purchase and maintenance), and Home Improvement Loans (for renovation and repair work). The focus in FY 2022-23 was to strengthen the transition of Group Loan customers to Individual Loan customers, offering them better growth opportunities and prospects. We utilised data analytics and insights to create distinct gateways and treatments for repeat loan customers and introduced Pre-approved Loans. These initiatives ensured customer retention, streamlined processes, and provided hassle-free loans as a reward to loyal customers. Additionally, we introduced Top-up Loans for repeat customers to provide additional working capital. In the open market segment, our primary target was clusters and branches in urban and semi-urban areas, aiming to tap into the vast potential of business assets and income generation.

We have adopted seamless digitisation and cutting-edge technologies to stay ahead of the curve. We have even introduced numerous digital-driven products and encouraged our customers to migrate towards digital banking channels. One such innovation is Hello Ujjivan, India's first Voice-Visual-Vernacular mobile banking application. With its guided journeys, this application enables customers, especially those less familiar with technology, to fulfil their banking needs and enhance their digital banking experience. Hello Ujjivan is available in eight regional languages and English - Hindi, Marathi, Bengali, Tamil, Gujarati, Kannada, Oriya & Assamese. Leveraging artificial intelligence and machine learning, the application efficiently understands different dialects within a specific language. In FY 2022-23, Hello Ujjivan had already benefited over 97,000+ customers.

Our UPI-based payment acceptance solution, Ujjivan-Pay QR, gained significant traction with a distribution of more than 2.96 Lakhs+, empowering our customers to digitise their incomes. Around 21% of our customers opted for cashless channels to repay their loans this year. Our real-time mobile number update facility witnessed substantial growth, with approximately 7 Lakhs customers updating their mobile numbers. Moreover, our external cash points were also successfully utilised, accounting for 52% of repayments collected. We met the increasing credit needs of our customers by providing hassle-free loans in a timely manner, ensuring fulfilment of their financial requirements.

Key Achievements of FY 2022-23

  • We disbursed loans to over 24+ lakhs customers, contributing to a total disbursement of ₹ 14,959 Crores. Notably, we achieved the highest-ever Group Loan disbursement in a single month, reaching ₹ 1,753.17 Crores, including a record-breaking top-up loan disbursement of ₹ 271 Crores.
  • Our unwavering focus on the Sampoorna Family Banking portfolio, encompassing Group Loans, Individual Loans, Savings and Deposit, Insurance, and Payment Solutions, resulted in significant cross-selling gains. Our term deposit book size increased by ₹ 283 Crores during this fiscal year.
  • We introduced WATSAN Loans to ensure affordable access to drinking water, adequate sanitation facilities, and improved hygiene among our customer base.
  • We implemented Virtual Relationship Managers to enhance customer service and address their financial needs more efficiently. This innovative approach reduced the efforts and time spent by field staff physically visiting customers, thereby improving operational efficiency.
  • In accordance with the latest Micro-Finance guidelines issued by the Reserve Bank of India (RBI), several changes were introduced, including the implementation of the Household Income Assessment Model (HHI). The HHI incorporates the following key aspects:
    • Credit Bureau check of all household members who are 18 years of age and above.
    • The household annual income limit has been raised to ₹ 3 Lakhs.
    • The Fixed Obligation to Income Ratio (FOIR) has been capped at 50%.
  • We launched pre-approved loans on launched Individual Loans (IL), a convenient offering that identifies eligible customers, and processes loans with reduced customer interactions. This eliminates the need for credit officer visits, streamlining the normal loan approval process. A total of 330 customers have already benefited from these Pre-approved Loans. We introduced IL Top-up Loans to cater to the additional liquidity requirements of our existing loan customers. These interim loans are provided within the existing loan tenure, ensuring quick access to additional funds.
  • We implemented a dormancy removal process, empowering our branch staff to raise paperless service requests. This enables the removal of dormant flags from customers' savings accounts, enhancing account activity and functionality.
  • We introduced the process of Direct Benefit Transfer in which, through a 4-minute paperless process, the staff can seed customers’ savings accounts for receiving the government-initiated subsidies.
  • We streamlined our operations by introducing a single flow process, enabling our staff to seamlessly handle customer loan applications and open savings accounts within the same flow.
  • Our Group Loan customers with strong savings behaviour now have the opportunity to access higher loan amounts from their second loan cycle and onwards, thanks to the introduction of loan enhancement.
  • We introduced the Government scheme, Atal Pension Yojana, which operates on the NPS framework. Subscribers of Atal Pension Yojana can choose from fixed monthly pension amounts ranging from ₹ 1,000 to ₹ 5,000 by paying monthly subscriptions.

Road Ahead

Moving ahead in MicroBanking, our focus is on achieving a completely paperless and signature-less loan sourcing process. This involves implementing pre-approved loans for Group Loans, e-signatures, and loan acknowledgments through the Hello Ujjivan app. We prioritise business control through Geofencing, One-Customer, One-Mobile, and Customer Authentication, during disbursement. We have plans to revamp the Aakarshan policy to attract better customers. Our goal is to enhance the functionalities of Hello Ujjivan and digitise the entire customer banking journey. The expansion of Ujjivan Pay QR is a top priority, enabling the digitisation of merchants' income and introducing additional features to meet customer demands. We also plan to offer value-added services alongside QR transactions to ensure customer satisfaction. Additionally, we are exploring loan offerings based on QR transaction behaviour. The Money Mitra network is expanding to bring banking services to village neighbourhoods, covering services like account opening and recurring deposit sourcing. Our overall objective is to embrace digitisation, improve control, and provide innovative solutions for an enhanced customer experience.

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