The changing economical ways of financial establishments are giving a new shape to India’s financial situations. MFI plays a vital role in the core development of infrastructure, transport, wealth creation opportunities, employment generation, and financial support for economically weaker sections; they also create a mammoth of contribution to the state exchequer. Moreover, with the banking system noticeably constrained or escalating their lending activities, the NBFCs plays an even more important role now, especially when the government has a strong emphasis on promoting entrepreneurship where India can transpire as a country of job creators instead of being one with the job seekers.
In between these monetary fluctuations, Jagaran Microfin Private Limited, a subsidiary of GTFS Multi Services Limited was established with the distinct aim of providing financial support, especially in the backward and rural areas. The word “Jagaran” has been derived from Sanskrit and it means “a state of wakefulness”. JMPL Started its operation in the year 2010 (November) with 3 branches is now operating across 5 states and 108 branch offices and serving around 2 lacs women borrowers in the states of West Bengal, Bihar, Jharkhand, Orissa and Assam.
The Pillars behind Jagaran
Jagaran is a subsidiary company of GTFS Multiservices, who are pioneer in the field of insurance and have taken insurance to the door steps of the large number of population. Jayanta Majumdar, Managing Director of the company, is a Chartered Accountant with nearly 2 decades of experience in various fields of finance and technology. Their Board members are eminent professionals coming from all facets of the business. It is spearheaded by the executive Chairman Mr Indrajit Gupta who is the Ex- Dy Managing Director of State Bank of India and Ex-CEO and Managing Director of SBI Capital Markets Limited. They have Dr Samir Barua, ex-director of the IIM Ahmedabad and
Dipankar Chatterjee a very renowned Chartered Accountant and the past Chairman of EIRC as independent director.
Along with them Dr Somnath Ghosh (Director) who is a Chartered Accountant with wide experience in taxation and several other nominated directors like Dipak Rudra ,retired IAS Officer and the ex-Chairman of UCO Bank and P.K Sarkar Ex-Dy Managing Director of SBI. They have 2 women representative in the Board, Dr. Kakoli Saha, who is a professional member of ISABS, NTL (USA) and International Coaching Federation, USA. She was formerly a panel member of Institute of Banking and Personnel Selection. And Miss Abira Majumdar who is the youngest member of the Board with a sociological research and legal background, she takes keen interest in various philanthropic activities. She is actively involved at Indian Institute of Cerebral Palsy.
A Dedicated Workforce Being the Backbone of Jagaran
Most of the employees of Jagaran are from the villages who understand the needs of the rural areas. A continuous training program makes them more knowledgeable about the various compliance requirements and about dos and don’ts of microfinance.
The values of Jagaran are reflected in the way of doing business. ‘Respect to individuals’ and ‘doing the right thing’ are the mantras. They believe in following the best practices in every sphere of their business. The organization has established a very solid corporate governance structure that has been well appreciated by the rating agencies. The Board of Directors comprises of the best people from the banking and finance industry. The members on board of Jagaran are highly experienced professionals having diverse knowledge in fields of banking, finance, public administration, accounts and audit.
The resilient structure of Jagaran and the long-term relationship it has with the members have been acid tested during the demonetization period and could maintain a very healthy portfolio after all these odds and maintain a repayment ration of 99.5% as on date.
Services offered by Jagaran
Jagaran’s products are designed in such a way that apart from income generation purposes it can also cater to their various needs and emergencies of the economically poorest women. Their ticket size varies from Rs.15000 to Rs.40000 and the members can choose any of the amounts based on their requirements. Also, they have products which are specifically designed for various needs such as children’s education or any kind of emergencies etc.
Jagaran is now working on providing loans which would absolutely be based on the analysis of the current and future needs. The loan amount shall be pre-determined based on their future cash requirement so that they don’t have to bear the interest unnecessarily on the amount which they actually don’t need. This will be a game changer in this industry where microfinance customers would be able to customize their products based on their requirements and it would almost be similar to Cash Credit facilities designed according to their future requirements. They have recently introduced a program called ‘Bondhu’ where they provide financial support amount to Rs.500, in case of death of any member or co-borrowers, in order to support them in their last rites.
The Clientele
Jagaran’s success stories lies in the success of more than 2 Lacs. women who are not simply getting a ‘micro’ loan as they call it, but being there at the right time and providing them necessary support in terms of enhancing their skills, guiding them through financial literacy programs including helping them to open their bank accounts making them a part of Jagaran family.
Last few years, Jagaran have been investing in technology immensely. Today all the field staffs are being provided with mobile phones which are integrated and they can do all the operational activities simply using their phones. That reduced the loan processing time considerably. However, the company believes in balancing the technology and human relationship. That is why they meet their members every week and interact with them on various issues. Also, Jagaran undertakes various CSR initiatives like different skill development programmes for women, operating 15 primary schools in villages and other health-related programmes throughout the year.
Future Roadmap
In the year 2017-18, Jagaran achieved a growth of 76% in terms of the loan portfolio. They opened 20 new branches last year and are planning to open 40 new branches in the current year and shall start their operation in few new states. Last year their customer base has increased considerably and they will definitely continue to add many new customers in this year. Jagaran’s focus is not to increase the ticket size but to increase the customer base. This year, they are envisaging more growth than last year. Today, Jagaran is one of the major players in Eastern India in microfinance and they are sure that they will be one of the major players pan India within next 3 years’ time.
Source: –The 10 Most Admired Non-Banking Financial Companies In 2018
Jagaran Microfin: Delivering Best-in-class Financial Services
