Sahara Utsarga Welfare Society

Message from the desk of CEO

As usual SUWS had plans to serve more and more needy people and bring them under the umbrella of the society, but no branch expansion programme could be made possible during the last year. Though there was increase in number of members, number of loan disbursal was marginally lower than the previous year. It occurred mainly due to continuation of non-cooperative attitude shown by the lending agencies. This situation practically compelled the society to restrict the extent of fund disbursal, though the field staffs put hard labour to maximize the realizations to be more liberal to the needy members. Despite passing through hard time during the last year, society has, however, continued all its activities to fulfil its other social objectives for benefit of the underprivileged poor people.

In view of the untiring efforts shown by the field staffs despite several hurdles to intensify their activities, we hope strong hope that the position of SUWS will be better again and get back the energy and enthusiasm to serve more and more members to bring in smile in them.

As per long term planning of the management, efforts continued for transferring the micro-finance activities of the society to its sister concern Destiny Finco Pvt. Ltd. However, the matter regarding license for acting as NBFC-MFI is still pending with Reserve Bank of India, as a result of which the company is not in a position to move for bank finance.

There was no remarkable change in Indian economical policy during the last year particularly for MFIs, except approval for setting up new commercial banks. Besides it has been decided to set up small finance banks in different parts of the country.  Small finance banks shall be in a position to  play an important role in the supply of credit to micro and small enterprises, agriculture and banking services in unbanked and under-banked regions in the country. Small finance banks will be permitted to accept deposits as well as lend money, and their main focus will be on small lending.

The management committee has been strengthened with the proposed induction of 5 senior level Bankers. Other senior level officers having exposure in all facets of Banking have been contacted, who may join shortly. All these officers are versatile and experienced.. This will enable the organisation to manage   risks and tackle any  competition with their risk based supervision.

Till further progress in the above aspect, SUWS concluded FY 2014-15 with little decline in operational surplus over previous year figure and this was mainly due to (i) comparative lower loan disbursal than previous year due to lower recovery thereby resulting fall in income, (ii) increase in expenses arising out of higher loan loss provisioning on account of  substantial increase in loss assets(aging more than 365 days) and incurring good amount for social development expenses. In order to ensure timely delivery of working fund to the borrowing members SUWS has made necessary attempt to enlist them for small bank license with RBI. I am glad to inform that name of Sahara Utsarga Welfare Society has been shortlisted and it is highly expected that name of SUWS will come out successfully.

I take the opportunity to thank all the agencies as well as  members of the staff for staying with us   and expect to receive their co-operation again in the days to come, for the interest of the people of the society who can march forward if a little support is made available to them.