Poised to Grow

Sarala has set itself the following goals over the 5 years ending March 2022:

  • AUM to increase 9 fold
  • Revenues to increase 10 fold
  • Profitability (PBT%) to increase 7%
  • Borrowers number to increase 9 fold

Branch and Geographic Expansion

From a current level of 66 branches spread over 3 Indian states but largely concentrated in the state of West Bengal, Sarala intends to increase geographical footprint through additional branches and presence in additional Indian states. While doing so, our policy will include the current processes followed for locations selection.

  • Information collation for a potential branch location on the basis of available demographic data and pin code analyses data.
  • Detailed on the ground survey through its own field staff. This survey involves spending some time at the location, talking with village leaders, meeting families to understand the socio-economic conditions prevailing at the location. A detailed survey analyses report is then submitted to the management team covering number of households, occupation, landless families, income/cash flow current and estimations.
  • Evaluation of competitive presence usually from other MFIs.
  • Verification of the data submitted through an internal audit team before the management team decides to open a branch or otherwise.

Headquartered in Kolkata, eastern India, Sarala has a unique advantage of being close to some of the most densely populated regions of India as well as looking further eastwards to the underserved markets of the North-east. Here is the regional distribution of Microfinance activity within India:

Source Bharat Microfinance Report of Sa-dhan 2016

Some of the adjoining states to West Bengal such as Assam Meghalaya and Sikkim in the North-east offer relatively untapped markets along with low Human Development in these regions.

Branch expansion plan:

Sarala has decided not to open any more branches in West Bengal and has already expanded into Bihar and Assam. Among Sarala’s growth plans are to expand into the states of :

  • Jharkhand
  • Orissa
  • Tripura
  • Manipur
  • Meghalaya
  • Chhattisgarh
  • Sikkim