SMS projects daily collections to reach Rs. 50 lakhs by the end of August 2019.SMS will also launch its new individual loan product in the coming financial year.SMS has been able to achieve 100% repayment rate in the last 5 years and this year also we could maintain the same. The overall good performance on the portfolio quality is due to good credit culture, client selection and orientation, peer pressure to maintain client discipline, reliable assessment of repayment capacity of borrowers and prompt follow-up in case of delinquency.This year SMS could also able to improved operating expenses ratio (OER) has improved from 15.5% in FY18 to 12.9% in FY19 due to decrease in personnel expenses. Operational Self Sufficiency for FY19 increased to 121% from 118% in FY18. SMS has applied and is hoping to receive Multi State Cooperative Licence and start operations in adjoining districts of Uttar Pradesh and Chhattisgarh and envisions to reach gross outstanding portfolio of Rs.75 crore. In Nutshell, I would like to conclude that FY 2018-2019 was a successful years for SMS. SMS not only could provide financial services to its members but also a set of non financial services. It has also given the confidence to expand our operation in more areas that we could serve more people from underprivileged section and achieve our mission and vision.
Total outreaches to the poor with our loan product increased from 14,201 members to 24,645. Similarly this increment can clearly be seen in portfolio & No. of SHGs which increased from Rs. 39,182,210 to Rs.300,132,009.00 and from 1423 to 2395 respectively with 100% recovery.
This year, we have also started working as Business Correspondence for IDBI Bank. We disbursed around Rs. 10 core to 3210 members as income generating loan.
Like credit, a significant change can be seen in Savings program. All members availed the facility of Savings as per their savings capacity and their needs. Total 24,645 members saved through the Compulsory Deposit (CD) and Recurring Deposit (RD) products Rs. 11,528,000.00 & 10,589,000.00 respectively. Apart from this Rs. 22,157,000.00 has been deposited as Fixed Deposit (FD) by members.
2015-16 was also favorable year for our livelihood support training programs. Under our regular training programs, we had trained approximately 50 members in stitching, 40 members in computer literacy and 370 members in accounting through SHG training programs.
Another initiative of financial literacy training was taken and 400 women entrepreneurs were trained on importance of financial planning, savings & budgeting. They were also trained on how to calculate and understand the rate of interest of loan etc. This was done with the support of FWWB, who not only funded the program but also provided technical training for the same.
In closing I would like to conclude that FY 2015 -16 was a successful year for SMS. We have not only rolled out our operation in new areas but also successfully served our members. It has also given the confidence to expand our operations in more areas so that we could serve more people from unprivileged section and achieve our mission and vision.
Hence, SMS is pro-posed to convert into multipurpose multi state society under the Multi-State Cooperative Societies Act, 2002 and in next three years we want to achieve new heights so that we could double the outreach in terms of membership and providing different services. Thanks for reading,
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