Arohan Annual Report 2023-2024

INDUSTRY OVERVIEW: As on March 31 2024, the overall size of the industry in terms of total loan portfolio is INR 6,88,937 Cr. The microfinance universe (MFI universe) has a total loan portfolio of INR 4,33,697 Cr and the total number of active loan accounts were 14.9 Cr with 7.8 Cr unique borrowers. 87 NBFC-MFIs emerged as the largest providers of micro-credit with a loan amount outstanding of INR 1,70,903 Cr, accounting for over 39% to the total MFI universe portfolio. 14 Banks hold the second largest share of portfolio in microcredit with total loan outstanding of INR 1,44,022 Cr, which is over 33% of total MFI universe. 10 SFBs have a total loan amount outstanding of INR 74,278 Cr with a total share of over 17%. NBFCs account for another ~9% and Other MFIs account for `1% of the MFI universe. 4.34 3.99 3.76 3.50 3.48 MFI Universe Mar’23 Jun’23 Sep’23 Dec’23 Mar’24 5 4 3 2 1 0 POS (INR Lakh Cr) Growth % (QoQ) 8.7% 0.6% 7.4% 6.2% 8.6% KEY INDUSTRY HIGHLIGHTS OF FY 2024 The Assam Microfinance Incentive and Relief Scheme (AMFIRS) 2021: In June 2021, the Government of Assam unveiled a ground-breaking initiative known as the Assam Microfinance Incentive and Relief Scheme (AMFIRS). The scheme aims to fortify the sustainable provision of microfinance services, fostering economic resilience among low-income and impoverished households in the state. In the fiscal year 2024, the successful rollout of Category 3, row 1 under AMFIRS marked a significant milestone in the scheme’s implementation. OVERVIEW OF FINANCIAL YEAR 2024 FOR AROHAN FY 2024 stands out as a year of remarkable accomplishments for Arohan, marked by a series of significant milestones that underscore its growth and resilience. Among these achievements, the successful closure of a substantial INR 266 Cr equity capital raise, with esteemed investors such as FMO and IFU, stands as a testament to the confidence placed in Arohan’s vision and potential. Furthermore, Arohan’s credit rating upgrade to A (Stable Outlook) reflects its sound financial performance and prudent management practices. Notably, the organisation’s attainment of the highest-ever score of 92 in the Great Place to Work® Trust Index© Employee Survey underscores its commitment to fostering a positive and empowering work culture. With this the Company has achieved its position amongst the Top 25 BFSI, India 2024 and has bagged the recognition of the coveted Best in the Microfinance Industry. In addition, Arohan’s achievement of the Gold standard CPP certification by MFR and securing formal Corporate Agency status for insurance products licensed by IRDA demonstrate its adherence to best practices and commitment to customercentricity. Moreover, the seamless transition managed by a fully capacitated senior management team speaks volumes about Arohan’s leadership stability and strategic foresight. Notably, Arohan’s proactive engagement in Category 3 relief under AMFIRS’21 in Assam showcased its responsiveness to socio-economic challenges. Financial prudence was upheld through initiatives such as ARC deal, ensuring stability and resilience amidst evolving market dynamics. Collectively, these milestones not only signify Arohan’s growth trajectory but also reaffirm its position as a leading player in the microfinance sector, poised for continued success and impact. Efforts were also directed towards enhancing quality & control disciplines, proactive credit policies, and efficient debt raising. A notable achievement was the reinstatement as a unique “Net NPA Zero” lending company. In FY 2024, Arohan demonstrated robust organic expansion efforts, notably launching its presence in Southern India, establishing a zonal office and branches in Karnataka and forming a dedicated Micro Enterprise Loan team. These strategic moves bolstered Arohan’s presence and capacity to serve diverse communities effectively. Additionally, the MFI Alliances business experienced substantial growth, surpassing an impressive INR 440 Cr, while the ArohanPrivilege programme flourished, managing a portfolio close to INR 144 Cr across 30,000 borrowers. These achievements reflect Arohan’s commitment to innovation and customer-centric solutions. Operational improvements were evident through various initiatives, including the launch of the uplifting employee anthem “Arohan mera Garv mera Sammaan,” top-tier MFI 33 | Annual Report 2023-24 Growth Pattern NBFC-MFIs Banks SFBs NBFCs Others 24% 21% 28% 37% 11% POS (INR '000 Cr) Growth % (YoY) 170.90 144.02 74.28 40.47

RkJQdWJsaXNoZXIy NTE5NzY=