The document provides an overview of microfinance, specifically highlighting Suryoday Micro Finance, its mission to empower economically disadvantaged women, and the benefits and challenges of microfinance services. It discusses the institution's operational strategies, social initiatives, and various analyses including SWOT and PESTEL, showcasing its achievements in increasing financial inclusion. Additionally, it details Suryoday's growth statistics and aims to promote better living standards for low-income individuals through financial services.

1. Towards partial fulfillment the requirements of the PGDM program of
Jaipuria Institute of Management, Indore
Micro Finance Institution
---------------------------------- 28-December 2016 -------------------------------------
Submitted to Submitted by
Dr Priti Bhakshi Charul Sharma
Satyam Kesarwani
Shreta Maheshwari
Shreya
Surbhi Shrivastav
Vijit Sharma

2. Contents
Introduction .......................................................................................................................................3
Benefits of Micro finance ................................................................................................................4
Challenges of Micro finance............................................................................................................4
Suryoday Micro Finance .....................................................................................................................5
Mission statement of Suryoday ........................................................................................................5
Vision statement of Suryoday ..........................................................................................................5
Values of Suryoday.........................................................................................................................5
Board of Directors ..........................................................................................................................6
The road traveled till now................................................................................................................6
Operations of Suryoday Micro Finance ............................................................................................7
Social Initiatives of Suryoday Microfinance .....................................................................................7
Major Investors...............................................................................................................................8
SWOT Analysis..............................................................................................................................8
PESTEL Analysis ...........................................................................................................................9
Blue Ocean Strategies .....................................................................................................................9
Financial Highlights........................................................................................................................9
Branding and Marketing Strategy...................................................................................................10
Risk Management and policy.........................................................................................................10
Major players ...............................................................................................................................11
Conclusion.......................................................................................................................................12
Learning’s....................................................................................................................................12
References .......................................................................................................................................12

3. Introduction
Micro finance is the organization which provides financial services to unemployed or low
income individuals, or groups. The vision of micro finance organizations is to provide financial
support to those who are low income in order to provide an opportunity to become self sufficient.
Institution participating in the sector of micro finance companies offer additional services, like
opening bank account, insurance, transfer fund. Many institutions provide information and
knowledge to their clients in order to support them in their business.
Micro finance was never a new concept in the economy, it was in existing from the 18th century.
The 1st micro lending was attributed to the Irish Loan Fund system, introduced by Jonathan
Swift.1
The two main mechanisms of financial services are
1. Relationship based banking
2. Group based models
Microfinance is the wider term, it includes micro credit. Microcredit is the provision to provide
credit facility to the poor. Micro finance and Micro credit enhance the financial inclusion in
order to lift people out of poverty.
1 http://www.investopedia.com/terms/m/microfinance.asp

4. Benefits of Micro finance
1. Small loans are produce and accessible
2. It is based on philosophy that even small accounts of credit in order to end the cycle of
poverty.
3. New opportunity area such as extending education , job
4. Set out to improve the standard of living amongst impoverished communities.
Challenges ofMicro finance
Challenges for microfinance are social as well as financial
1. More articulate and better- off community members may cheat poor or neighbours.
2. Rate of inflation may cause fund to lose their value (time value of money).
3. Gender discrimination.

5. Suryoday Micro Finance
Suryoday Micro Finance Ltd is a registered NBFC (Non Banking Financial Company), engaged
in providing loans to women from economically weaker section who do not have access to
traditionally banking services.
Suryoday is the Sanskrit word which signifies the dawn of a new beginning. The objective of
Suryoday is to give an impetus to the economically disadvantage women to make a fresh start by
utilizing loans for income generating activity and enameling sustainably socio-economic
progress.
Missionstatement of Suryoday
To cater to 1 million households by the year 2016
Vision statement of Suryoday
To be a world-class financial services organization that provides products and value-added
services to the economically challenged, helping them generate higher income, build an assets
base and achieve a sustainably better standard of living.
Values of Suryoday
Ethics &
integrity
Customer
Focus
Employee
Friendly
Respect
Simplicity

6. Board of Directors
1. Dr. Sheela Bhide
2. Dr. R Ramachandran
3. Mr. Venky Natarajan
4. Mr. Mathew Joseph
5. Mr. Aleem Remtula
6. R. Baskar Babu
7. MrutunjaySahoo
The road traveled till now
Source: http://suryodaymf.com/

7. Operations of Suryoday Micro Finance
Social Initiatives of Suryoday Microfinance
Aim of Suryoday is to enable customers to enhance their income levels and overall social well-
being. Towards this objective, they had since inception, a separate, dedicated Social Initiatives
Team that works directly with our customers and endeavors to nurture a relationship so that the
customers feel comfortable enough to reach to the team for solutions to the problems they face
within the sphere of Financial and Social well-being.
Business
Model
• operates in and distribute loan to customer who reside within a 10 kilometer radius of b
branch.
• has operations in Maharashtra, TN, Odisa, Gujarat, Rajasthan, Karnataka & MP
Product
• JLG Microfinance Loans for Income Generation Activities
• Additional Income Generating Loans
• Individual Loans for Business Activities
Corporate
Governance
• Risk Management Policy & CSR Policy
• Whistle blower policy
• Nomination & remunaration policy
Strategy
Projects
Financial
Literacy
Livelihood/
SkillsTraining
HealthCare

8. Major Investors
1. Response Ability
2. Evolvence India
3. Gaja Capital
4. Lok Capital
5. Developing World Markets
6. International Finance Corporation
7. HDFC life
8. HDFC
9. IDFC Bank
SWOT Analysis
Strength
1.Diversification of
financial services
2.Lesser operatingCost
3.Abilityto provide
financial services to the
poor
Weakness
1.Lack of abilityto track
credit history.
2.Lack of proper
corporate governance
3.Lack of technology
Oppertunities
1.Creatingan enabling
policyto promote
fincancial inclusion
2.Creatingtechnologies
to promote financial
inclusion
Threat
1. loan amount is too
small to create an
enduringassets
2. Competition from
rural-centricnew
banking
initiatives/players(JDY)

9. PESTEL Analysis
Political and economical factor
1. Demonetization has become both good and evil for the microfinance sector. The
borrowers of MFI are not able to pay their EMIs as they do not have supply of new
currency. The MFIs are also facing lack of liquidity because of which they are not able to
disburse loans.
2. Rumors that the citizen of Maharashtra would receive a loan waiver shock the footholds
of the MFI industry and they stop lending there.
Social and technological factors
1. Digitization of Micro Finance sector can help reduce the operation and personnel cost.
They could also help in maintaining good relationship with their clients.
2. The micro finance industry gets impacted by the social behavior of people towards it.
These companies tries to build the trust of their clients by conducting activities like
digging well, building toilets and other sanitation facilities and educating them.
Environmental and Legal factors
1. Giving adequate knowledge of the various crops to the farmers has been one of the major
contribution of MFIs.
2. The MFIs have to follow the various rules and regulations of RBI which keeps changing
from time to time.
Blue Ocean Strategies
The open area for the Suryoday Microfinance for growth,
1. Access to low cost funding
2. Diversification of products
3. Lending to micro and small enterprises.
Financial Highlights
1. Gross loan portfolio – Rs 1040 Cr
2. Customer Base – 6.5 lakhs
3. Employees – 1708
4. Geographical coverage – 8 States
5. Branches – 179
6. Disbursements – Rs 1279 Cr
7. Field Staff – 995

10. 8. Balance sheet Size – Rs 1196 Cr
9. PAT – Rs 27.4 Cr
10. Operating expenses ratio – 7.7%
11. Gross NPA – 0.16%
12. Capital Adequacy Ratio – 22.43% (Tier 1 capital ratio – 21.5% & Tier 2 capital ratio –
4.4%)
13. Growth rate –
 AUM- 78%
 Net profit – 61%
14.
Key Ratios
Particulars FY 15 FY 16
Debt/Equity 4.5 4.8
Returnon Assets 2.90% 2.80%
Returnon Equity 15.40% 16.70%
Cost to income ratio 53.90% 54.70%
Operational Expensesratio 7.50% 7.60%
Branding and Marketing Strategy
The company has starting its marketing activity on small scale through various experiments of
launching new products and variants in existing products. Proposed Small Financial Bank need
to gain trust of the target customer. Therefore branding and marketing plays an important role in
the success of the organization.
Risk Management and policy
The risk management policy is always overlooked by the Board of Directors and they are
continuously benchmarked with the best practices.

11. Source: http://suryodaymf.com/document/Suryoday_Annual_Report_2016-17_Sept-08-2016.pdf
Major players
1. Disha
2. Ujjivan Financial Services ltd
3. Janalakshmi Financial Services Pvt ltd.
4. ESAF Microfinance

12. Conclusion
In the year 2015 Suryoday was transformed from a mere NBFC- MFI to a Small Finance
Bank (SFB). Achieving such a great height in a small time frame has become the strength
of Suryoday. Over the previous year, its Net interest income has increased from 55.48 cr
last year to a whopping 93.93cr in the present year.
The company is following the CAR norms prescribed by RBI. It has made borrowings
with the bank and financial institutions, and deposited their FDs as collateral earning an
interest upon them.
Learning’s
1. History of Microfinance, introduction of Malegam Committee
2. Micro –finance: Lessons from international experience
3. Models of Micro-finance
4. Difference between moneylenders, commercial bank, financial institution
5. What is Financial Inclusion
6. Financial Product and services.
References
1. http://suryodaymf.com/document/Suryoday_Annual_Report_2016-17_Sept-08-2016.pdf
2. http://suryodaymf.com/
3. http://www.investopedia.com/terms/m/microfinance.asp
4. https://www.linkedin.com/pulse/3-types-micro-finance-institutions-ojijo-p
5. https://www.linkedin.com/pulse/macros-microfinance-swot-analysis-asim-mohapatra
6. http://www.slideshare.net/prabhus1988/microfinance-industry-turn-around