The 2010-11 Microfinance Crisis in India: Ujjivan Case Study

Thirty percent of India’s urban population (106 million individuals out of a total of 352 million urban dwellers in 2013) live in poverty. Given the scope of this problem, Mr. Samit Ghosh, a Wharton alumnus founded Ujjivan, a microfinance firm in 2005. Ujjivan serves urban and semi-urban poor by empowering women living in India’s slums. It’s mission is to alleviate poverty and to enable customers lead a “better life” (in partnership with Parinaam Foundation), through social welfare, healthcare, education, vocational training, community development, shelter, and disaster relief. As on 31st July 2013, Ujjivan had disbursed over Rs. 52,903 Million (nearly USD $1 billion) to more than 1,180,295 customers at 324 branches in 21 states across India. In 2011 the microfinance industry in India was in crisis. This report discusses how Ujjivan not only weathered this period but also thrived by focusing on customer satisfaction, employee motivation and continuous process improvement.

About the Author
Anoop K Baliga, a freshman at University of California Berkeley, is deeply interested in ameliorating social inequality including income disparity. He is the recipient of the The Cal Alumni Association (CAA) 2014–15 Alumni Scholarship (Leadership Award). He is an associate of the Net Impact chapter at Cal Berkeley--a volunteer led organization that uses business as a force for environmental & social impact.

He graduated as a National AP Scholar from Columbus Academy, Columbus, Ohio where he was the founding President of both the Debate and Investment Clubs. He received his initial education in Global Economics at Corpus Christi College, Oxford University, England in a residential course conducted by Oxbridge Academic summer programs in 2011. He received further education in finance and economics at Columbia University summer residential program in 2012. In summer of 2013 Anoop served as an intern for seven weeks at Ujjivan, a microfinance firm serving the urban and semi-urban poor in the slums of India. He is also an intern at the Economic and Community Development Institute (ECDI), a Central Ohio based community development non-profit that serves the poor. He was awarded Certificate of Merit by the US Congressional Youth Leadership Council (CYLC) in recognition of his outstanding dedication to educational achievement, strength of character and leadership. He speaks Mandarin and has traveled extensively in the US, India, Italy, UK and China allowing him to develop an ecumenical approach to social inequality. He has been declared a District Winner every year with a superior or excellent rating, in the National Piano Auditions conducted by the National Guild of Piano Teachers since 2008. He also plays the violin and active in the school choir. He has a black-belt in Taekwondo awarded by the World Taekwondo Federation. He also enjoys tennis and golf.