A Project Report Presentation of Service Management on Ujjivan.

1. Service Management Project
Group 3
Eshwar K R 15019
Sumanth M M 15056
Indrashish Guin 15087
Shivakanth Sharma 15112
Tejasri MLS 15156
Vinay Kumar 15183

2. Agenda:
• About MFI
• Introduction of Ujjivan
• Nature of services & services offered
• Strategic Vision
• Growth rate
• Service Blueprint
• Demand Forecasting & Capacity Management
• HR policies

3. Microfinance Institutions
• Loan given without security
• Loans to those people who live below the poverty line
• Members of SHGs may benefit from micro finance
• Maximum limit of loan under micro finance ₨25,000/-
• Terms and conditions offered to poor people are decided by NGOs
• Microfinance is different from Microcredit

4. Ujjivan Financial Services
• Started in 2005
• Has its branches in 24 states, 423 branches and over 6500 employees
• started a concrete water reservoir at a school in Kolkata
• fully managed cloud service
• In September 2015 the profit before tax was 737.31 million
• 16th place in the category ‘Top 50 firms above thousand employees’
• 2nd place in the Financial Services category for Best Companies to work for.
• One of the Best Companies in Leadership Development.

5. Customer Segment

6. Service Package
• Supporting Facility- Office space, furniture, stationery, lockers, IT infrastructure, Document
Management System.
• Facilitating goods- Legal documents, monetary products.
• Information- Internet enabled hand held field tablets, official website, SMS and voice enabled
reminder to customers, In-bound and out-bound call centre for customer redressal.
• Explicit services- Collateral free loans for customers, successful business, hassle free loans
disbursement and credit- sum deposit facility.
• Implicit services- Loans at lesser interest rate than pawn brokers

7. Nature of Services
• Mass Service due to low customisation and high labour intense.
• Method of service delivery- Grameen method
• Formation of small groups of people to provide morally necessary group guarantees.
• Group based lending is one of the most innovative approaches of lending small amounts of money
to a large section of society
• Opportunity for women to access loans for starting a small scale or medium size enterprises

8. Services offered by Ujjivan
• The business is primarily based on the joint liability group lending model for providing
collateral free, small ticket-size loans to economically active women.
• The company also offers individual loans to micro & small enterprises (MSEs).
• In terms of loan products, Ujjivan offers a diverse range to cater to the specific requirements of
the customers.
• Its products can be classified under two broad categories i.e.,
1. Group loans
2. Individual loans.

9. • Depending on the end use, these products can be further sub-divided into
• Agricultural,
• Education,
• Home improvement,
• Home purchase
• Livestock loans.
• In addition to loan products, it also provides non-credit offerings comprising life insurance
products, in partnership with insurance providers such as Bajaj Allianz Life Insurance Company,
Kotak Mahindra Old Mutual Life Insurance and HDFC Standard Life Insurance Company.
• Core Banking and all other systems will run on most secure and robust servers like Oracle Sun
Super Cluster, CISCO Blade Servers and CISCO Routers and Switches.

10. Customer Retention Percentage
Currently total number of customers are 1.21 million. Approximately there is a growth of 12% in
their customer base.

11. Strategic service vision
• Target customers: People with lower income mainly in semi urban and villages unserved by
higher financial institutions and banks.
• Operating structure: The regional office of Ujjivan is where a customer can apply for the loan.
The highly populated cities are allocated with more funds for the sanction of loan by Ujjivan.
• Service delivery system: Granting loan without having a guarantee.
• Service concept: To provide full range of financial services to economically active poor to build
better lives.

12. Emergency Loan
• Medical emergency requirements of customers.
• Disbursed within 24 hours of request.
Service package :
Explicit service -Range of Rs 2000 to Rs 5000.
Information - Bill receipts which the customer claim for the loan.
Service Strategy :
• Target customers: Daily wage groups and lower income
• Operating structure: Applied loans are being sanctioned by the regional offices.
• Service delivery system: Granting the loan amount within 24 hours.
• Service concept: Basically for the poor people who are in extreme need.

13. Education Loan
• This service is provided to promote education among our customers. To help the customer children’s educate by
providing the expenses.
• The loan range: Rs.5,000–Rs 15,000
• The repayment tenure: 12 Months
• The processing fees: 1% of loan amount (exclusive of taxes)
Service Package
• Explicit service: The education loan provided between 5000 to 15000.
• Implicit service: The annual meeting to involve all the customers and make them knowledgeable about various
courses.
• Information: The information from standard institutions.
• Supporting facility: Details from schools and colleges.
Service Strategy
• Target Customer – Mainly to the customers children and other studious needy students.
• Operating Structure – Applicants has to get certificates from the academic institutions for approval of loan
• Service Delivery System – Valid applications are sanctioned within 20 days and cheque is issued.
• Service Concept – To raise the standard of living of the customers children thereby increasing customer
loyalty.

14. Facility Design and Facility Layout
• Orientation at Ujjivan
• Servicescape of Ujjivan.
• Interpersonal services (both customer and employees)
• Environmental Dimensions of Servicescape
Ambient Conditions
Spatial Layout and Functionality
Facility Design
• Nature of the service organizations.
• Land availability and Space area requirements.
• Security

15. Process Analysis

16. Growth Path of Ujjivan:
• A company’s growth can be explained by using various important financial indicators as well as in
terms of its geographical expansion, number of employees, customer reach and services it delivers
to its customers.
• Financial indicators that measures growth include
• Assets under management (AMU)
• Net interest income
• Net interest margin
• Profit after tax
• Return on equity
• Return on assets

17. Assets Under Management (AMU):

18. Net interest income

19. Net Interest Margin:

20. Profit After Tax:

21. SERVICE BLUEPRINT

22. Group Loan
• Focused mainly on poor for providing group based financial services.
• This segment was underserved by other financial institutions and Ujjivan used this opportunity to
accomplish their financial inclusion objectives.
• Extensive coverage of the poor accounts for a significant portion of outstanding portfolio.
• Operates mainly joint liability group (JLG)
Some group loan products are :
• Business Loan
• Family Loan
• Agriculture and allied Loan
• Business top-up Loan
• Education Loan
• Emergency Loan

23. Individual Loan
• Targets ‘missing middle’ and this portfolio comprises of 10 % of outstanding loans.
• Loan given to individual basis without any group guarantee.
• In selecting individual livestock loans and business loans which are offered to customers who doesn’t
have repayment track record with Ujjivan.
Some Individual loan products are:
• Individual Business Loan
• Individual Livestock Loan
• Home Improvement Loan
• Higher Education Loan
• Individual Agriculture Loan
• Secured Business Loan
• Secured Home Loan

24. Demand Forecasting by Ujjivan
• According to the National Housing Bank there was huge demand for housing loans within
the lower segment of the population. Most of the customers lives in small and unfurnished
houses which needed to be renovated. This department led to the Home Department
Loan Product. They served around 5000 families for better living by providing them
Home Loan.
• India has world’s largest bovine population. Most of the dairy businesses are concentrated
in the semi urban or villages of India. The dairy farmers were solely dependent on money
lenders and informal financial institutions. Ujjivan took this opportunity and this demand
led to the conceptualization of Livestock Loan for the dairy farmers.

25. Capacity Management by Ujjivan
• Usage of Central Banking System (CBS) where customer is the main business element.
Communications and financial activity are merged together for the betterment of the financial
services towards their customers. It is being well integrated with the mobile transaction field.
• In retaining top talent they has launched deferred compensation scheme and has ensured
comprehensive training and capacity development programme across various functions.
• In the near future through technological advancements like e- KYC authentication with UID,
handheld device-enabled underwriting process etc. they has focused on capacity building and
increased efficiencies.

26. HR Policies
Retaining Top Talent
• Promoting Experienced Staff
• Internal Job Postings (IJPs) and Employee Referrals
• Well-rounded Growth
• Performance-based Rewards and Recognition
• Training Initiatives
• Timely Appraisals
Management Development Program
• Need-based Skill Development
• On boarding Programs

27. THANK YOU