November collections at 91%, disbursements also strong: Ujjivan

The impact of demonetisation seems to be waning as improving access to currency has led to robust collections and disbursements for Ujjivan Financial Services, says CFO Sudha Suresh.

Collections have been around 91 percent in November and disbursements at nearly Rs 553 crore, Suresh told CNBC-TV18 in an interview.

Although confident the situation caused due to demonetisation will ease off significantly by end of the month, she prefers to remain cautious and refrain from any guidance on loan growth for now.

Also, disbursements are currently being done to only existing customers, she says.Below is the verbatim transcript of Sudha Suresh's interview to Latha Venkatesh, Sonia Shenoy and Anuj Singhal on CNBC-TV18.Latha: At that time you had told us that you don’t have to classify loans as non-performing assets (NPAs) even if they don’t come back for two months, as also you are worried about collections, how are collections going at this point in time, what percentage?A: The situation is much better now compared to the discussion that we had last week. The scenario is that the customers in terms of their access to the new currency have been able to have a better position and thereby we have posted a robust collection of 91 percent in November. We have also been able to disburse almost Rs 553 crore during the month of November which has been able to provide critical support to our customers because of this continued loan disbursements.Having said that, we would also like to state that the microfinance institutions' network has been proactively moving across government with the ministers of finance, with the chief ministers, CMO, ministry of finance as well as the RBI in order to see that we are not getting any kind of negative impact.Sonia: What kind of loan growth are you looking at over the next one-two months?A: We would like to say that we would like to be cautious in terms of watching the position as it happens in December. As much as the position -- in terms of repayments and collections are far better and things are more eased out now. In terms of new loans growth and new disbursement, we would like to see whether we can take on the same trajectory, we are fairly confident that December will be a better month but it remains to be seen in terms of what would be the actual growth like.Anuj: You are pretty sanguine that this impact would last at best a quarter and after that things would be normal?A: Fairly confident of this.Latha: Collections rate now? Are you above the 90 percent mark?A: Yes, we are 91 percent and above and we are looking at much more improvements in the forthcoming weeks. So we are fairly confident that things will be far better even by the end of this month.Latha: Collections were how much in the November 10th week and how much in the latest week?A: In fact, overall November collections have been almost -- as we said -- the rates have been above 91 percent.Sonia: Are you disbursing loans now to existing customers only or have you started disbursing to new customers as well?A: We have continued to disburse to our existing customers right now and we are taking a fresh look at the new customers.