Arohan Financial Services Limited | Annual Report 2021-22

Aakash Aakash (Space) is the subtle yet powerful facilitator of progress and movement of our Being into the future. Themicrofinance industry has consistently been the facilitator of growth and progress for the financial inclusion entities, despite the various volatilities of the macro environment. In the last two years, the industry, with the leading efforts of the industry Self-Regulatory Organization and the support of the Reserve Bank of India and the Government, has bolstered the foundation of the socio-economic pyramid of the country through inclusive financial services, powered by technology, strengthening economies for scale. The last two years have been eventful for the entire Indian economy and the microfinance industry, in particular. Despite facing challenges in terms of COVID-19 waves, government lockdown, regional restrictions and natural calamities etc., which led to amuted business period in the first half of Fiscal 2022, themicrofinance portfolio in India has increased Year on Year. Non Banking Financial Company- Microfinance Institutions (NBFC-MFIs) hold the 2nd largest share of microfinance portfolio of INR 87.4 K Cr after Banks, which hold INR 103.6 K Cr. However, till Q3-FY22, NBFCs witnessed the highest growth of 16% in MFI portfolio followed by Others (including Non-Profit MFIs, 11.2%) and both, NBFC-MFIs and Small Finance Banks (SFBs) saw growth by 5.7%. 45 Annual Report | 2021-2022 Management Discussion & Analysis