Mitrata Inclusive Financial Services in the midst of transformation & growth:
Mitrata Inclusive Financial Services is a dynamic NBFC, established on September 1, 2017, following the successful launch of the Mitrata program by At-Grassroots Society on December 1, 2009. Under the leadership of Managing Director Dr. Aqueel Ahmed Khan, Mitrata has expanded its footprint to 68 branches across 5 states – Uttar Pradesh, Madhya Pradesh, Haryana, Rajasthan, and Bihar – serving over 1 lakh customers.
Notable Initiatives
In the last 12 months, one significant development at Mitrata has been the appointment of Achla Savyasaachi as an Independent Director. Dr. Aqueel Ahmed Khan explained: “Achla Savyasaachi has joined Mitrata as an Independent Director, bringing our total to 4 independent directors, including a woman independent director. For a small-sized company, having such a strong board is rare.”
Emphasizing a reflective approach, Mitrata has initiated efforts to reconnect with its foundational principles by engaging with field officers and branch managers. This initiative aims to revisit the core reasons for the existence of Microfinance Institutions (MFIs), focusing on the history, community engagement, and the fundamental principles of Joint Liability Groups (JLGs). This process is about unlearning past practices to relearn effectively.
To enhance operational effectiveness, Mitrata has also established a field-based cadre of Quality Managers responsible for underwriting and monitoring Loan Utilization Compliance (LUC), ensuring adherence to credit policies in the field.
Achievements
Mitrata has achieved notable milestones, including successfully completing the Seed Transformation Program at Stanford University, designed to strengthen the leadership team and management systems for growth. The organization was also one of only ten shortlisted MFIs in India for the Asian Development Bank’s Technical Assistance program, focusing on business continuity and risk mitigation measures. Additionally, the company has participated in an incubation program with Village Capital, which recognized its efforts in leveraging financial inclusion to mitigate the risks faced by migrant workers heading to Gulf countries. The organization has been shortlisted for the Climate Ready WASH program, aimed at constructing climate-resilient toilets in flood-prone areas, thereby enhancing sanitation infrastructure and addressing climate challenges.
Rating Progression & Stability
Over the last 3 years, Mitrata has achieved a BBB- rating from Infomerics, with aspirations for further growth. Dr. Khan explained: “Our next objective is to secure a BBB- rating from the top 2 rating agencies. Following that, we aim to progress to a BBB rating and ultimately achieve an A- rating by the third year.”
Mitrata has also diversified its funding sources, securing External Commercial Borrowing (ECB) financing through Crédit Agricole of France. Dr. Khan added: “Two prominent international funds from Belgium and Singapore are conducting due diligence for debt financing.”
This diversification expands Mitrata’s capital sources, including NBFCs, public sector banks, small finance banks, and international funds, positioning the organization for continued growth.
Tech Innovations
Mitrata has made significant strides in technology initiatives. The company has been chosen by MFIN to develop a dedicated app under an HSBC-supported project, set to launch soon. The app will enhance client interactions by offering a streamlined, user-friendly interface for accessing services, significantly improving the overall customer experience.
Collaborating with fintech company Vitto, Mitrata aims to facilitate the underwriting of individual MSME loan portfolios, enhancing financial accessibility for small businesses and enabling them to secure funding more efficiently.
Furthermore, the implementation of Paymee software will enable effective monitoring of overdue collections, ensuring transparency and accuracy in financial operations while bolstering fraud prevention, thereby significantly improving Mitrata’s financial performance.
Human Resource Initiatives
Dr. Khan emphasized the stability of the core team at the top management level, which has contributed to organizational continuity. Mitrata places a strong emphasis on cultivating a positive workplace culture built on “Respect, Recognition, and Rewards to motivate our team,” as Dr. Khan emphasizes. Over the past 2 years, Mitrata introduced a monthly performance report card, providing each employee with valuable insights into their strengths and areas for improvement and serving as a guide for professional development.
Dr. Khan highlights: “Employees who consistently demonstrate outstanding performance are not only eligible for monetary rewards but also receive recognition by being featured in our internal newsletter.” Top performers also enjoy quarterly dinners with the core management team, offering both recognition and networking opportunities.
These initiatives have led to many former employees returning to the organization, which Dr. Khan notes is the result of: “investments made in culture, values, transparency, accountability, and recognition,” strengthening employee retention and satisfaction.
Financial Performance (in Rs million)
Note: The decrease in disbursement figures is due to Mitrata’s decision to wind down its Business Correspondent (BC) operations and build its own portfolio.
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