@pskrishnan, the latest data which we have for ujjivan is for November month only.
1.a)Ujjivan recorded collection rate of 91% in November 2016 as per 05/12/2016 data. December Data yet to come and as per management things are changing quickly and will be far better at December end. Ground reality except UP, other geographies are doing well.Ujjivan have only 5% exposure in UP.
b) Ujjivan disbursed loans worth Rs 553 crore in November out of which 65% was in cash and 35% was cashless which is just about 20% less from normal disbursement. Generally ujjivan disbursed 60% cashless and 40 % cash earlier quarters but they are now disbursing higher in cash because customer is asking for more cash now as there are some restriction of withdrawing the loan from bank account also . One the reply of the question about the reasons behind higher disbursement than other MFIs Management replied _'We are one of the only MFIs who did not accept Rs. 500 and Rs. 1000 notes as soon as demonetization was announced. We only accepted legal tender, consequently whatever repayments we have collected that we are able to use for our disbursement of new loans and that gives us a very strong position in the field because most MFIs including banks like recently converted MFIs who have become banks are unable to disburse loans because they are only getting old notes. So that is creating a very positive environment for us and what we are seeing is a gradual, as the work gets around that Ujjivan is not just collecting but also disbursing loans either people are coming forward to repay more and more to us and basically keeping their businesses and their family lives churning.'
As i know disbursement is equally important with collections in MFIs because it was observed earlier that if MFIs stops disbursement then people stops coming to repay so the chain should not be broken .
c) For demonetization what could be the effect it will be clear once the quarterly data started coming. Except demonetization , due to SFB transition as per management commentary, Q4 will be effected as Ujjivan will be converted in SFB. Almost from H1 FY18 , they will return to normal growth.
d)Post demonetization, MFIs look to digitize the entire Loan Disbursement Process. The MFIs like Ujjivan,Bharat Fin are leveraging Aadhaar which is already the world’s largest bio metric database to dole out loans instantly.In the new system based on Aadhaar-enabled bio metric authentication, the members can apply for a loan instantly. The Approval/Disbursement happens on loan officer’s tablet device. The member is asked to place her finger on the bio metric device on the tab. The data is sent for verification and the response is received.After the KYC verification, the data is sent for credit bureau clearance. Once the member has been verified, she is deemed eligible for the loan. All of this happens in just about 15 seconds. If the member is eligible the Loan officer fills the loan form based on her requirement and takes her signature. He then gives her a carbon copy of the application form, collects the insurance and loan fee. This completes the instant loan disbursement process and the loan gets credited on the same day.The digital initiative is aimed a providing an abiding competitive advantage and customer delight. It will increase the ease of doing business and will help the MFI take the big tech stride towards cashless transactions.Most importantly it will reduce the cost significantly.
Obviously this will not happen immediately but within few months Ujjivan will adopted this model as it is most technically advanced it will not take much time for them.
Discl: All the input which I got from various Media Articles,TV Interviews.Invested in Ujjivan and biased.