ujjeevan approved design - Ujjivan a direct causal impact of microfi nance in view of multitude of...

Impact Assessment Survey Report 2010-2013

By Delphi Research Services Private Limited

Impact Assessment Survey Report 2010 – 20132

3

Copyright © Ujjivan Financial Services Private Limited, Michael & Susan Dell Foundation, Lok Capital, 2013

All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publishers.

Ujjivan Financial Services Pvt. Ltd.

#93, Jakkasandra Extension, Sarjapur Main Cross Road, Koramangala 1st Block, Bengaluru - 560 034Tel : +91 80 4071 2121 • Fax : +91 80 4146 8700e-mail: [email protected]

Michael & Susan Dell Foundation

PO Box 163867Austin, TX 78716Fax : +1 (512) 600-5586e-mail : [email protected]

Lok Capital

2B, Ramkishore Road, Civil Lines, New Delhi - 110054

Design : Vinyasa, Bangalore


Contents

SECTION TITLE PAGE NO.

Acknowledgements 5

Preface 6

Glossary of Terms & Abbreviations 8

List of Boxes, Tables & Charts 10

1 Introduction 14

2 Summary of Findings 18

3 Detailed Survey Findings 27

3.1 Sample Demographics & Socio-Economic Indicators 27

3.2 Perceived Well-being Indicators - Current and Future 48

3.3 Education & details of children of school going age 52

3.4 Access to banking services 55

3.5 Monthly Household Income 59

3.6 Monthly Household Expenditure 64

3.7 Notional Monthly Household Surplus/Defi cit 71

3.8 Savings 75

3.9 Insurance 76

3.10 Loans from Other Sources and Levels of Indebtedness 77

3.11 Healthcare Expenses in Last 1 Year 80

3.12 Progress out of Poverty (PPI) Indicators 82

4 Implications of Findings 85

5 About Ujjivan 86

Bibliography 87

5

Acknowledgements

Microfi nance has been recognized as one of the key tools for poverty alleviation over the last four decades. However, a direct causal impact of microfi nance in view of multitude of factors which impact the lives of the poor is diffi cult to prove empirically.

We undertook this study over a period of three years and chose a random sample of 3000+ customers in their fi rst loan cycle spread across diff erent states in 2010 and collected data. We went back to them again three years later to collect data and fi nd out how well they were doing. The entire study was conducted independently by Delphi Research Services and we from Ujjivan gave them complete independence and freedom in their research and fi ndings. We thank them for the professional job they have done.

Our ‘social investors’ are most keen to fi nd out our double bottom line impact and two of them funded this study. We gratefully thank Michael & Susan Dell Foundation and Lok Foundation for the fi nancial support given to conduct this important research and publish this report. We would specially like to thank Shri Brij Mohan, who is considered to be the ‘father’ of the microfi nance industry, for writing the preface.

For us at Ujjivan the outcome of this study has re-enforced our belief that we are able to have a positive impact on the lives of our customers by enabling to achieve fi nancial inclusion. The 1300+ customers who stayed with us in that turbulent period were able to improve their well-being signifi cantly by a combination of factors: our loans which delivered them from the clutches of money lenders; a vast majority were able to save in banks; increasing number had availed of life insurance; surprisingly high number had their own identity through the Aadhaar Card; most of them were mobile users. It is a combination of all these factors which helped improve their well being.

The second factor which this study highlights is that only if customers stay with us in the long haul, do we see real improvements in their lives. In the microfi nance industry we need to pay higher attention to customer retention.

Finally, the steep infl ation and growth in the last three years already has made the income cut-off s established for the rural & urban poor by the Reserve Bank of India, out of date. Unless we are able to scientifi cally monitor and keep changing these limits, they will be serious impediments to serve the working poor in India. It is best to remove such limits.

Samit Ghosh, Managing Director, Ujjivan Financial Services Pvt Ltd.

October 2013


Preface

Questions have always been raised on the basic intent of microfi nance, not just by critics but even by its supporters. Is it a tool for fi nancial inclusion or a route to economic development or a mechanism for improving quality of life and social empowerment? In-spite of several studies, especially in the last two years by various entities, the fi ndings indicating positive economic and social impact in the lives of Microfi nance clients have not been found acceptable for want of statistical rigour. This latest study by Ujjivan provides clear empirical evidence that well managed microfi nance meets all three objectives.

Ujjivan Financial Services commissioned Delphi Research Services in 2010 to conduct an exhaustive Baseline Survey. The ‘Impact Assessment Survey’, part of Ujjivan's Social Performance Management Program, was designed to capture data relating to various socio-economic and quality of life indicators that would enable monitoring and tracking of changes in the overall well-being of Ujjivan customers occurring over a 3-year period.

Round 1 of the study, a Baseline Survey completed in 2010, utilized the Cerise and PPI (Progress out of Poverty Index) methodology. 3,272 Ujjivan customers who were in the First Loan Cycle between September and November 2009, across 9 states in India were interviewed in January and February 2010. This robust sample provided rich insights into the incomes, expenses and savings patterns of Ujjivan customers. The primary objective of Round 1 was to obtain tangible benchmarks that could be used as an effi cient comparison mechanism for the data collection that would follow in Round 2 after 3 years.

Round 2 of the ‘Impact Assessment Survey’ commenced in February 2013, when Delphi returned to nearly 1500 customers from the original pool, who were still active Ujjivan borrowers. Results yielded insights into changes in income and consumption patterns as well as quality of life indicators.

There are three special features of this present study:

1) Unlike other studies, there is a clear baseline group of 3272 clients covered in 2010 and the survey seeks to measure the change on the same baseline group clients;

2) Impact study has been done by an independent reputed group viz. Delphi Research Services who were also involved in the Round 1 survey, in 2010;

3) The intervening period 2010-2013 was the most challenging time for the Microfi nance industry, which gets fully refl ected in very high drop outs, and the signifi cance of positive change during these diffi cult times is very assuring.

7

Overall, data from Round 2 indicated a marked improvement in the lives a majority of the active customers. The quality of life metrics including the PPI scores resonate with the positive well-being of the customers over the 3-year period. 87% defi ned their current state of well-being as “Positive” (Good to Very Good) vs. 60% three years ago.

Optimism was noted, as 96% percent of this group reported that they believe their lives ‘will continue to improve in the next three years’ (up from 85% in reported in 2010).

From 2010 to 2013, the average monthly income among all respondents increased by over 51%, after adjusting for infl ation.

There was a substantial increase in the number of self-employed women from 48 % in 2010 to 61% in 2013, and the monthly incomes for these self- employed women rose by an average of 85% over the three year period, after adjusting for infl ation.

It was also observed that 81% of customers were able to save money, while only 63% were adopting this behavior as per 2010/Round1.

Additionally, 24% of the customers are now well-protected by a life insurance policy as compared to 16% in 2010.

On the social indicators, education has also gained importance. 40% of school-going children of customers attend private schools as compared to 28% in 2010, with 12% of them making a shift from government to private schools.

Likewise, there was an assuring increase in clients having access to home toilet (84% from 70% in 2010), running water ( 71% from 54% in 2010) and LPG as a cooking fuel (71% from 55% in 2010), which is a clear sign of social mobility.

The PPI Score is 70, up from 57 in the Baseline Survey.

It is true, that combinations of both intrinsic and extrinsic factors contribute to the improvement of any household, and therefore Ujjivan cannot be singled out as the sole contributor to the well-being of its clients. However, Ujjivan, by providing an alternative, aff ordable source of fi nance and support services is enhancing the potential for these customers to ‘Build a Better Life’. The positive impact of microfi nance on the well-being of the active customers re-iterates the key role which microfi nance institutions play to achieve fi nancial inclusion and consequently help alleviate poverty at no cost to exchequer or any other subsidy.

Brij Mohan, Former Executive Director, SIDBI

October 2013


Glossar y of Terms & Abbreviations

• Aadhaar Aadhaar is a 12 digit individual identifi cation number issued by the Unique Identifi cation Authority of India (UIDAI) on behalf of the Government of India. This number will serve as a proof of identity and address, anywhere in India. (http://uidai.gov.in/what-is-aadhaar-number.html; http://uidai.gov.in/)

• Cerise CERISE (Comité d’Echanges de Réfl exion et d’Information sur les Systèmesd’Epargne-crédit), is a knowledge exchange network for microfi nance practitioners. Founded in 1998, CERISE is richly diverse, bringing together a variety of practitioners, researchers, donors and investors from the North and South. CERISE was founded out of the desire of its fi ve members to share and learn from each other. Our work is focused on four themes: Impact and Social Performance, Agricultural and Rural Finance, Governance and Social Viability, Intervention methods CERISE has spearheaded a whole new facet of performance assessment to complement fi nancial analysis. Our goal is to help MFIs become sustainable while genuinely contributing to development. Cerise has developed a range of innovative tools off er constructive solutions for social performance management for MFIs.http://www.cerise-microfi nance.org/-impact-and-social-perfomance-

• PPI Progress out of Poverty Index, developed by Grameen Foundation. The Progress out of Poverty Index® (PPI®) is a poverty measurement tool for

organizations and businesses with a mission to serve the poor. The PPI is statistically-sound, yet simple to use: the answers to 10 questions about a household’s characteristics and asset ownership are scored to compute the likelihood that the household is living below the poverty line - or above by only a narrow margin. With the PPI, organizations can identify the clients, customers, or employees who are most likely to be poor or vulnerable to poverty, integrating objective poverty data into their assessments and strategic decision-making.

• MFI Micro Finance Institution

• NBFC Non Banking Finance Company

• SKS SKS Microfi nance Limited (http://www.sksindia.com/)

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• MHI Monthly Household Income

• MHE Monthly Household Expenses

• PAN Card Permanent Account Number Card

• SHG Self-help Group

• Salaried Individuals employed in vocations that pay a regular wage or salary

• Self-employed Individuals who earn an income through a small or micro-enterprise

• Job Worker Individuals who are paid on a piece rate basis

• MNREGA Mahatma Gandhi National Rural Employment Guarantee Act

• Anganwadi A Program started by the Indian government in 1975 as part of the Integrated Child Development Services (ICDS) to combat child hunger and malnutrition. A typical Anganwadi centre also provides basic health care in Indian villages. It is a part of the Indian public health-care system. Basic health-care activities include contraceptive counseling and supply, nutrition education and supplementation, as well as pre-school activities. The centres may also be used as depots for oral rehydration salts, basic medicines and contraceptives. These centres provide supplementary nutrition, non-formal pre-school education, nutrition and health education, immunization, health check-up and referral services of which later three services are provided in convergence with public health systems

• Zari work Embroidery with gold thread

• Beedi Smokable Tobacco rolled in tobacco leaf

• Agarbathi Incense Stick

• Rakhi Sacred Thread tied by a sister around a brother’s wrist during Raksha Bandhan (the bond of protection), a Hindu festival

• Bindhi A decorative dot worn in the middle of the forehead by women, especially Hindus


List of Boxes, Tables & C har ts

List of Boxes

Box 1 : What the Baseline Survey Involved - A Snapshot 14

Box 2 : Status of 3,272 Baseline Survey Customers - Jan 2013 15

Box 3 : Developments in The Microfi nance Industry Since March 2010 15

Box 4 : Basic Industry Characteristics that have a Bearing on Drop Outs 16

Box 5 : What the 2013 Survey Involved - A Snapshot 16

List of Tables

Table 1 : Sample Composition 16

Table 2 : Detailed Composition of Monthly Household Expenses (MHE) - by Value 22

Table 3 : A. Access to Basic Amenities in Dwelling - Toilet, Running Water, LPG 24

B. Ownership of Ration card, Voter ID card, PAN card, Aadhar Number 24

C. Education of Children 24

D. Access to Banking Services 25

E. Insurance Cover 25

F. Reported Savings 25

G. Loans from Other Sources, as reported 25

Table 4 : Major Occupations among

A. Salaried Respondents 30

B. Self-Employed Respondents 31

C. Job Workers Respondents 31

Table 5 : Major Occupations among

A. Main Earners-Salaried 39

B. Main Earners-Self-employed 40

Table 6 : Family Size & Number of Earning Members in Household

A. Overall, by Region & State 41

11

B. by MHI, Family Size, No. of Earning Members 42

C. by PPI, Current Well-being Rating 43

Table 7 : Housing Status - Overall, by Region & State 44

Table 8 : Access to Basic Amenities - Overall, by Region & State 45

Table 9 : Ownership of Ration, Voter ID, PAN Cards, Aadhar Number - Overall, by Region & State 46

Table 10 : Asset Ownership - Overall, by Region & State 47

Table 11 : Access to Banking Services 56

Table 12 : Composition of Monthly Household Expenses (MHE) by Value 64

Table 13 : Respondents’ Contribution to Monthly Household Income (MHI) and Monthly Household Expenses (MHE) - Overall, by Region & State 70

Table 14 : Reported Savings - Overall, by Region & State 75

Table 15 : A. Loans from sources other than Ujjivan - Overall by Region & State 77

B. Purpose of Loans Taken from Other Sources 78

C. Loans from Sources Other than Ujjivan 79

Table 16 : Preferred Sources for Next Loan 79

Table 17 : Healthcare Expenditure in Last 1 Year - Overall, by Region & State 80

List of Charts - I

Charts 1 : Respondents Occupation 18

Charts 2 : A. Respondents Monthly Income 19

B. Proportion of respondents whose Monthly Income (MI) has Increased, Remained the same, Decreased 19

Charts 3 : Main Earner Occupation 20

Charts 4 : A. Number of Earning Members in Household 20

B. Proportion of households where number of Earning Members has Increased, Remained the same, Decreased 20

Charts 5 : A. Monthly Household Income (MHI) in Rupees 21

B. Proportion of households whose MHI has Increased, Remained the same, Decreased 21

Charts 6 : A. Monthly Household Expenses (MHE) 22

B. Proportion of households whose MHE has Increased, Remained the same, Decreased 22

Charts 7 : Asset Ownership 24

Charts 8 : Education Level of Respondents 27


Charts 9 : Occupation of Respondents


B. by MHI, Family Size, Number of Earning Members 29


Charts 10 : Respondents Monthly Income (in Rs.)




D. by Occupation of Main Earner, Respondent 33

Charts 11 : Proportion of Respondents whose Monthly Income (MI) has Increased, Remained the same, Decreased 34

Charts 12 : Monthly Income Distribution of Respondents - Overall, by Region & State 35

Charts 13 : Occupation of Main Earner




Charts 14 : Proportion of Households where number of Earning Members has

Increased, Remained same or Decreased 43

Charts 15 : Occupation of Main Earner

A. Current & Likely Future Overall Well-being Rating 49

B. Current Overall Well-being Rating

1. Overall, by Region & State 50

2. by MHI, Family Size, No. of Earning Members 50

C. Future Overall Wellbeing Rating

1. Overall, by Region & State 51

2. by MHI, Family Size, No. of Earning Members 52

Charts 16 : A. Proportion of Households whose kids of school going age attend school 53

B. No. of Kids of School Going Age Going to School - Overall, by Region & State 54

C. Type of School attended - Overall, by Region & State 54

D. Kids attending Private Tuition - Overall, by Region & State 55

Charts 17 : Last banking transaction & receipt of transaction updates on Mobile Phone 57

Charts 18 : Monthly Household Income (MHI)


13

B. by Family Size, Number of Earning Members 60



Charts 19 : Proportion of respondents whose Monthly HH Income has Increased, Remained the same, Decreased 63

List of Charts - II

Charts 20 : Monthly Household Expenses (MHE)





Charts 21 : Proportion of respondents whose Monthly HH Expenses has Increased, Remained the same, Decreased 69

Charts 22 : Notional Monthly Household Surplus/Defi cit (in Rs.)





Charts 23 : Notional Monthly Household Surplus/Defi cit as a % of Monthly Household Income (MHI)





Charts 24 : A. Life Insurance Policy - Overall, by Region & State 76

B. Health Insurance Policy - Overall, by Region & State 76

Charts 25 : A. Amount Spent Towards Healthcare Expenditure in Last 1 Year (in Rs.) -

Overall, by Region & State 81

B. Loan taken for Healthcare Expenses in Last 1 Year - Overall, by Region & State 81

Charts 26 : A. PPI at US$1.50 per day per capita - Overall, by Region & State 82

B. PPI at US$2.00 per day per capita - Overall, by Region & State 83

C. Composition of PPI bands - Overall, by Region & State 84


Introduc tion1.1 Ujjivan Financial Services Private Limited

(Ujjivan), as part of its Social Performance Management Program, as well as its ongoing eff orts to measure the impact of its activities, felt the need to evolve a formal mechanism for tracking changes in the lives of its customers.

1.2 As a step in this direction, in January 2010, Ujjivan commissioned Delphi Research Services Private Limited (Delphi), an independent market research and strategic consulting company, to conduct a Baseline Survey among 3,200 customers who were in their fi rst Loan Cycle (customers who had taken their fi rst loan between 1st September and 7th November 2009) in 15 cities and towns across 9 states. (Refer Box1)

1.3 It was intended that these 3,200 customers would be contacted after two to three years to track changes in their income, expenses, saving patterns as well as along a host of other quality of life and Well-being indicators.

B asel ine Sur vey (2010) - A Snapshot

Sample Size 3,272 1st Cycle customers (who took their fi rst loan between 1st September and 7th November 2009)

Geographical Coverage 9 States in North, South and East

States covered

North Delhi & U.P (Ghaziabad)

South Karnataka & Tamil Nadu

East West Bengal, Bihar, Jharkhand, Odisha

Number of Branches 49

Sampling Method Stratifi ed Random Sampling

Mode of Data Collection Face-to-Face Interviews

Research Instrument Semi-structured questionnaire

Timing of Data Collection January and February 2010

Box 1

1.4 The results of the Baseline Survey were submitted to Ujjivan in April 2010.

1.5 In February 2013, 3 years after completion of the Baseline Survey, Ujjivan commissioned Delphi to undertake an Impact Assessment Survey that would entail contacting the 3,272 customers who were interviewed in the Baseline Survey.

1.6 The fi rst step, prior to conducting this survey, entailed determining the number of customers interviewed in the Baseline Survey who were “Active” customers and the number that may have “dropped out” for one reason or another, as of the end of January 2013.

1.7 This task was revealing and came as a surprise to the authors of this report. Consider this: Almost 54% of customers contacted in the Baseline survey had dropped out. (Refer Box 2)

Intr

oduc

tion

Introduction 15

S tatus of 3 ,272 basel ine sur vey customers ( 2013 )

Active Customers

1,484 (45.3% of Baseline customers)

Dropped Customers

1,750 (53.5% of Baseline customers)

Customers with Duplicate ID

Numbers

38 (1.2% of Baseline customers)

D evelopments in the microf inance industr y s ince March 2010

• The industry has been in turmoil since the second half of 2010, attributed to the developments in SKS, overzealous lending and intense competition among MFIs, negative press with respect to heavy handedness during collection, suicides by borrowers, ambiguity in the regulatory environment, drying of funds to the industry, and over-regulation. In short, clouds of uncertainty, shortage of funds and over-regulation blight the industry.

• The government of Andhra Pradesh announced state-specifi c laws and measures to regulate the industry and actively encouraged non repayment by customers. Hence, most players with a presence in the state are severely aff ected including 3-4 of the largest players in the industry.

• Credit Bureaus for the industry commenced operations and credit reports help in detecting and reducing multiple borrowing from MFI lenders.

Box 2

1.8 On the face of it, such a high proportion of drop outs, a little more than half the number of customers contacted 3 years ago seems alarming. However, if we annualize the drop-out proportion over 3 years, it works out to below 18% per year, which does not seem as worrying as 54%. In order to get more meaningful insights into this phenomenon (drop outs among urban poor MFI customers), one will need to analyze the drop out proportions in terms of customers who drop out after 1 loan cycle, 2 loan cycles, 3 loan cycles and so on; classify drop outs in terms of customers exiting on their own and those weeded out by the MFI; as well as undertake a comprehensive study among drop out customers who chose to exit of their own volition.

1.9 It appears that data relating to drop outs among MFI customers are not being

Box 3

shared at the moment by MFIs. Hence, there do not seem to be empirical industry norms or data from recent studies to benchmark with, for this phenomenon.

1.10 The almost 54% drop out proportion of this set of Ujjivan’s customers (customers contacted in the Baseline Survey of 2010) also needs to be viewed in the context of various industry developments since 2010, (Refer Box 3) basic characteristics of the microfi nance industry (Refer Box 4) and the Joint Liability Group (JLG) model of lending to urban poor customers.

1.11 Given this backdrop, based on extensive discussions between Ujjivan and Delphi, it was decided to:-

• Undertake a comprehensive analysis of Drop Out customers based on data available from the Baseline Survey conducted in 2010 as well as from data made available by Ujjivan for this purpose. The results of this analysis have been submitted to Ujjivan but are not featured in this report, given its strategic nature.

• Restrict the Impact Assessment Survey of 2013 to the 1,484 Active Customers who were contacted during the Baseline Survey.


S ample Composit ion

State Sample Size Achieved

Delhi & U.P. (Ghaziabad) 176

Rajasthan 89

Total - North 265

Karnataka 431

Tamil Nadu 154

Total - South 585

West Bengal 262

Bihar 90

Jharkhand 52

Orissa 65

Total - East 469

Grand Total - All 3 Regions 1,319

Industr y charac ter ist ics that have a bear ing on drop outs

• For regulatory reasons, most MFIs have a single product off ering, namely, a Loan Product, albeit with several variants.

• Several MFI customers may have a need for signifi cantly higher loan ticket sizes (especially for medical, education and housing purposes) than that off ered by MFIs at present.

• This restricted portfolio and the absence of products for savings, insurance and other fi nancial services, of most MFIs, comes in the way of sustaining a long term relationship with customers whose gamut of fi nancial needs encompass much more than loan products alone.

• Strict credit bureau checks forced many customers to withdraw their applications for loans to one or more MFIs or had their applications rejected.

Box 4

Round 2 of sur vey (2013) - A Snapshot

Sample Size 1,319 Active Customers

Geographical Coverage

9 States in North, South and East

States covered

North Delhi & U.P (Ghaziabad)

South Karnataka & Tamil Nadu

East West Bengal, Bihar, Jharkhand, Odisha

Number of Branches 42

Mode of Data Collection Face-to-Face Interviews

Research Instrument Face-to-Face Interviews

Research Instrument

Identical Semi-structured questionnaire used in the Baseline Survey with a few additional questions, for “apples to apples” comparisons

Timing of Data Collection

February and March 2013

Box 5

1.12 In the 2013 survey, we were able to contact and interview 1,319 ‘Active Customers’ out of the 1,484 available customers contacted in the Baseline Survey of 2010. (Refer Box 5)

1.13 Sample Composition - by Region & States

Table 1

Introduction 17

1.14 This report features a gist of the key study fi ndings and their implications.

1.15 Purpose of the Report

The primary purpose of this report is to:-

• Document the key learning from this survey.

• Provide a factual description of changes over 3 years in the lives of a sample of Ujjivan’s customers, as reported by them and as derived by the authors from stated as well as disaggregated information obtained during the study.

1.16 Caveats and Limitations

The fi ndings of the study need to be qualifi ed based on the following observations of the research team that conducted the study:-

• During the timing of the data collection during the Baseline Survey (January & February 2010), when the industry was characterized by intense competition and over-lending, many respondents seemed to be very “microfi nance savvy” and sometimes gave what seemed like “politically correct” responses; such responses were fairly common during the 2013 survey as well.

• Some respondents, especially in the East, may have over-stated their monthly income and expenses in both rounds of the survey, ostensibly to give the impression that they can continue to service more loans.

• With respect to levels of indebtedness and loans taken from sources other than Ujjivan, most respondents have under-stated these aspects in both rounds of the survey. Hence, such data must be viewed with abundant caution.

• Since the sample size for this study comprised tracking 1,319 active customers, well under half the number of 3,272 customers contacted in the Baseline Survey of 2010, the opportunity for detailed analysis of various sub-groups is somewhat limited. The report features a wide range of charts and tables that off er insights into various sub-groups of customers along a host of indicators. Wherever the base number of the sub-groups is very small, data corresponding to such sub-groups must be viewed with caution.


S ummar y of Findings2.1 More Women Gainfully Employed

▪ The proportion of non-working/unemployed customers has declined to 18% in 2013 from 21% in 2010 (See Chart 1, fi gures indicated under “Others”).

▪ This decline is most pronounced in two Eastern states:-

• Orissa (down from 74% in 2010 to 56% in 2013); and

• Jharkhand (down from 46% in 2010 to 17% in 2013).

2.2 Changes in Occupation Patterns

▪ The proportion of “Job Workers”/“Piece Workers” has almost doubled to 23%, up from 12% in 2010.

▪ This phenomenon is highest in the eastern states:-• West Bengal (22%, up from 4% in

2010); • Jharkhand (31%, up from 4% in

2010); and• Odisha (12%, up from 0% in 2010).

▪ The proportion of “Self-Employed” has dropped from 45% in 2010 to 36% in 2013.

▪ This decline is most steep in two eastern states:-• West Bengal (36%, down from 71%

in 2010); and• Bihar (37%, down from 60% in

2010).

Key Insight: A shift in respondents’ occupation from “Self-Employed” to “Job Workers” appears to have taken place across all regions (North, South and East) but is most pronounced in the East.

2.3 Respondents Monthly Income has Increased

▪ The respondents’ monthly income has increased among 80%, remained the same among 3% and declined among 17%.

▪ The average monthly income of respondents has increased in all the states.

▪ The average monthly income of respondents has increased by 47% at Rs. 4,347 after adjusting for infl ation, from Rs. 2,357 in 2010.

Respondents Occupation Chart 1

18233623% in 2013

21124522% in 2010

S alar ied S elf- employed O thersJob worker

Sum

mar

y of F

indi

ngs

Summary of Findings 19

▪ The infl ation adjusted increase is highest among Self-Employed at 85% (Rs. 5,877 in 2013 from Rs. 2,534 in 2010); and lowest among Job Workers at 10% (Rs. 2,470 in 2013 from Rs. 1,790 in 2010).

Key Insight: A natural process of weeding out of unsuccessful “Self-Employed” respondents seems to have taken place over the last 3 years. There has been a steep decline among the Self-Employed (refer Chart 1). However, respondents who continue to be Self-Employed have been able to register the highest infl ation adjusted income growth.

Respondents Monthly Income Chart 2A

37

9

40

34

23

57% in 2013

% in 2010 2,357

Up to Rs. 2 ,000 Rs. 2 ,001 - Rs. 4 ,000 Rs. 4 ,000+

Increased S ame D ecreased

Average in Rs.

4,347

Proportion of respondents whose Monthly Income (MI) has increased, remained same, decreased Chart 2B

17380% of

Respondents

2.4 Changes in Occupation of Main Earner of Household

▪ The ‘Main Earner’ of the household was defi ned as the member earning the highest amount per year. They are predominantly Salaried or Self-Employed.

▪ Among Main Earners of the household, the proportion of Self-Employed has increased to 61% from 48% in 2010. This proportion has increased in all states and across all Monthly

Household Income (MHI) groups.

▪ The proportion of Salaried Main Earners has declined to 38%, down from 50% in 2010.

Key Insight: Higher the proportion of Self-Employed Main Earners, higher are the Monthly Household Income (MHI), Well-being Rating and PPI


Average

Main Earner Occupation Chart 3

11

1

48

61

50

38

S alar ied S elf- employed O thersJob worker

% in 2013

% in 2010

2.5 Increase in Number of Earning members in the Household

▪ The proportion of households with more than 1 earning member has increased to 84% from 79% in 2010.

▪ This proportion has increased in all states except in West Bengal.

Key Insight: Higher the number of earning members in households, higher are the Monthly Household Income (MHI) and Well-being Rating

No. of Earning Members in Household Chart 4A

1 2 2+

235621

325216% in 2013

% in 2010

Proportion of households where number of Earning Members has increased, remained same, decreased Chart 4B


% of

Households195130

2.6 Increase in Monthly Household Income (MHI)

▪ The monthly household income (MHI) has increased among 88%, remained the same among 1% and decreased among 11%.

▪ 74% of respondents have a monthly household income of more than Rs. 10,000, up from 23% in 2010.

▪ The average monthly household income of respondents has increased in all the states.

2.15

2.29


11188

▪ The average monthly household income has increased by 51% at Rs. 15,864, after adjusting for infl ation, from Rs. 8,391 in 2010.

▪ The infl ation adjusted increase is highest among Salaried at 59% (Rs.15,641 in2013 from Rs. 7,863 in 2010), followed by Self-Employed at 44% (Rs. 16,149 in 2013 from Rs. 8,934 in 2010).

Key Insight: Household Incomes have grown signifi cantly (upwards of 44% after adjusting for infl ation), over the last 3 years in all states, all sub-groups and among both the Salaried and Self-Employed, signifying substantial increase in wages and earnings as well as growth in number of earning members in households.

Average in Rs.

Monthly Household Income (MHI) in Rupees Chart 5A

Upto Rs. 4 ,000 Rs. 4 ,001 - Rs. 6 ,000 Rs. 8 ,001 - Rs. 10,000Rs. 6 ,001 - Rs. 8 ,000 Rs. 10,000+

23

74

18

15

25

8

24

2

10

1% in 2013

% in 2010

Proportion of households whose MHI has increased, remained same, decreased Chart 5B


% of

Households

2.7 Increase in Monthly Household Expenses (MHE)

▪ The monthly household expenses (MHE) have increased among 81% and decreased among 19% of households.

▪ The average monthly household expenses have increased by 15% at Rs. 12,495 after adjusting for infl ation, from Rs. 8,704 in 2010.

Key Insight: Monthly Household Expenses have grown by 15% while Monthly Household Incomes grew by 51%, after adjusting for infl ation. Monthly household savings in 2013 accounted for 18% of total monthly household expenses, up from 13% in 2010.


Average in Rs.

Monthly Household Expenses (MHE) Chart 6A

Housing & Uit i l t ies

O thers, Misc. ExpensesLoan Repayments, S avings

Food, Provis ions, Grocer ies, Educat ion, Conveyance, Health Care

5

4

27

29

57

55

11

12% in 2013

% in 2010 8,704

12,495

Proportion of households whose MHE has increased, remained same, decreased Chart 6B


% of

Households1981

▪ Overall, the biggest heads of expense are Food & Provisions (42%) and Loan Repayments (12%), while Savings account for about 18%. The data relating to MHE composition in the present survey and that of the baseline seem very consistent.

D etai led Composit ion of Monthly Household Expenses (MHE) - by Value

Head of Expense % in 2013 % in 2010

Rent 2.4 2.3

Electricity 4.1 3.8

Water 0.5 0.5

Cooking Fuel 4.5 4.5

Sub-Total 11.5 11.1

Food, Provisions 42.2 43.0

School Fees, Books etc. 6.5 6.5

Conveyance 2.4 3.4

Health-Care 4.0 4.3

Sub-Total 55.1 57.2

Loan Repayments 11.5 13.3

Savings 17.9 13.3

Sub-Total 29.4 26.6

Others, Miscellaneous Expenses 4.0 5.1

Grand Total 100 100

Table 2


2.8 Notional Monthly Household Surplus/Defi cit

▪ The notional average monthly household surplus is Rs. 3,369 in 2013 as against a notional average monthly defi cit of Rs. 313 in 2010.

▪ Most households with a monthly household income of below Rs. 10,000 still end up with a monthly defi cit and fi nd it very diffi cult to generate a surplus. However, in such households, the extent of the monthly defi cit seems to be on the decline.

Key Insight: All sub-groups are relatively better off fi nancially than they were in 2010 and those with shortfalls have been able to reduce their monthly defi cits

2.9 Share of Respondents’ Income in Monthly Household Income (MHI)

▪ The share of respondents’ income as a percentage of the average monthly household income is 27%, a notch below 28% in 2010.

2.10 Share of Respondents’ Income in Monthly Household Expenses (MHE)

▪ This is a very important metric since, in reality, only a part of the household’s gross monthly income is generally made available to the woman of the house towards meeting the monthly household expenses.

▪ The share of respondents’ income as a percentage of the average monthly household expenses is 35%, up from 27% in 2010.

▪ This proportion has gone up in almost every state. However, the most signifi cant increase is in the two southern states - Karnataka (43% from 27% in 2010) and Tamil Nadu (41% from 31% in 2010).

▪ The most signifi cant increase among other sub-groups is:-• Self-Employed respondents: 44%

from 27% in 2010.• PPI of up to 49: 44% from 29% in

2010.

Key Insight: The upside of this phenomenon is the empowerment of women, manifested in their increasing contribution to the household’s kitty. The downside, however, may be that male earners in such households may reduce their contributions to the household kitty, which seems to be happening more in the south than in other regions.

2.11 Changes in Select Quality of Life Indicators

1. ACCESS TO BASIC AMENITIES IN DWELLING

▪ Access to basic amenitiies has improved signifi cantly in all the states.

2. OWNERSHIP OF RATION CARD, VOTER ID CARD, PAN CARD, AADHAR NUMBER

▪ Most of the respondents contacted have a Ration card (94%) and Voter ID card (99%). About 1 in 8 respondents has a PAN card. 57% have an Aadhar number.

3. ASSET OWNERSHIP

▪ Ownership of durables has increased across the board. Mobile Phone ownership is 92% in 2013, up from 69% in 2010.

4. EDUCATION OF CHILDREN

▪ The proportion of children attending school is 67%.


Educat ion of Chi ldren

% in 2013

% in 2010

% of households with 1 or more kids of school going age, attending school 72 71

Proportion of children attending school 67 66

Of these, % who go to a private school 40 28

% who attend private tuition 50 46

Access to B asic Amenit ies in D wel l ing - Toi let,

Running Water & LPG

Amenity % in 2013 % in 2010

Toilet in dwelling 84 70

Access to running water 71 54

LPG used as main fuel for cooking 71 55

Table 3A

Table 3C

O wnership of R at ion card, Voter ID card, PAN card,

Aadhar Number

Ownership of: % in 2013 % in 2010

Ration card 94 88

Voter ID card 99 93

PAN card 13 NA

Aadhar number 57 NA

Table 3B

Asset Ownership Chart 7

85 86

69 71

53

36 34

18

97 9692

87

73

61

48

36

% in 2010 % in 2013

T V1 or more

Elec tr ic FansMobi le Phone

Access to

Cable T V

Motor ized 2

WheelerMixer

S ewing

MachineRefr igerator

▪ There is a signifi cant increase in the proportion of children attending private schools (40%) and private tuition (50%), underscoring the importance urban poor women attach to the education of their children.


5. ACCESS TO BANKING SERVICES

▪ 63% of respondents have a bank account in 2013 from 39% in 2010.

▪ Of these, 73% have transacted against their accounts in the last 30 days, mitigating somewhat concerns of dormant bank accounts among the urban poor.

▪ 36% of those who have bank accounts claim to receive sms-based transaction updates for their bank accounts.

Access to B anking S er vices

% in 2013

% in 2010

Have a bank account 63 39

Of these, % carried out a transaction in last 30 days 73 NA

% get transaction updates via sms 36 NA

Table 3D

6. INSURANCE COVER

▪ 24% of respondents claim to have a life insurance policy in 2013 from 16% in 2010; while barely 3% have a Health Insurance policy.

Insurance Cover

% in 2013

% in 2010

Life Insurance Policy 24 16

Health insurance Policy 3 3

Table 3E

7. REPORTED SAVINGS

▪ 81% of respondents in 2013 say they are able to save some money from time to time from 63% in 2010.

▪ The average amount saved per year is Rs. 1,469.

Repor ted S avings

2013 2010

Proportion of respondents who are able to save (%)

81 63

Average Saving per year Rs. 1,469 Rs. 1,169

Table 3F

8. LOANS FROM OTHER SOURCES, AS REPORTED

▪ About one in three respondents claims to have taken a loan from sources other than Ujjivan, that they are servicing at present.

▪ The major sources from which such loans have been taken are Microfi nance Institutions (79%).

Loans f rom O ther S ources, as repor ted

2013 2010

% who have taken 1 or more other loans at present

29 20

Of these, % who have taken Loan of Rs. 10,000 or more

82 48

Major Sources - Other Loans % %

Microfi nance Institutions (MFIs) 79 61

Self Help Groups (SHGs) 8 7

Individual Financiers, Pawn brokers, Money Lenders

3 15

Banks 2 2

Table 3G


Detailed Findings

Detailed Survey Findings 27

Detailed Findings3.1 Sample Demographics & Socio-economic Indicators

EDUCATION LEVEL OF RESPONDENTS

▪ 34% of respondents are illiterate.

▪ This proportion is highest in the North (49%), followed by the South (38%) and East (21%), among regions; and highest in Rajasthan (61%) and lowest in West Bengal (14%), among states.

Deta

iled

Find

ings

Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65

Education Level of Respondents Chart 8

Figs in %Round 2 - 2013Overall; By Region , State

Roun

d 2

Overall Region State

34

3 4

14

29

16

49

3 37

23

15

38

15

18

27

11

214

4

13

35

23

43

54

9

23

16

61

1 4

22

12

36

24

20

26

12

42

19

13

29

6

145

511

39

26

35

21

16

27

19

23

64

13

44

10

25

23

17

23

30

N =

Nil Some Yrs in College PUC, 12th Std SSLC, Matric Upto 9th Std Upto 4th Std# Figs to be viewed with caution due to very small sample sizes.

34

3 4

14

29

16

Overall

Roun

d 2

By MHI By Family size By No of Earning members

Overall; By Monthly Household Income (MHI), By Family Size, By No of Earning members

Overall

1319

Upto

Rs. 4,000

11#

Rs. 4,001 -

Rs. 6,000

31

Rs. 6,001 -

Rs. 8,000

106N =

Rs. 8,001 -

Rs. 10,000

203

Rs.

10,000+

968

Upto 4

655

4+

664

1

217

2

686

2+

416

73

27

23

6

16

32

23

25

23

11

35

24

29

15

13

32

20

36

34

15

28

14

29

45

15

32

15

38

23

13

27

17

31

25

16

27

19

28

35

16

32

16

45

2310

25

15


Baseline - 2010Round 2 - 2013Figs in %

Nil Some Yrs in College PUC, 12th Std SSLC, Matric Upto 9th Std Upto 4th Std

# Figs to be viewed with caution due to very small sample sizes.

34

3 4

14

29

16

Overall

1319N =

Roun

d 2

Overall; By PPI, Well-being

By Well-being

Positive

1147

Neutral

144

Negative

28#

34 30 39

16 18 14

28 35 32

1414

11

4

33

5

By PPI

Upto 49

134

50-60

177

60+

1008

46 43 31

310

19

22

111

25

20 14

31

1515

45

OCCUPATION OF RESPONDENTS

▪ The proportion of non-working customers has declined to 18% in 2013 from 21% in 2010.

▪ This decline is most pronounced in two Eastern states:-

▪ Orissa (down from 74% in 2010 to 56% in 2013) and Jharkhand (down from 46% in 2010 to 17% in 2013).

▪ While the proportion of Salaried respondents has stayed more or less the same at 23% in 2013, the most signifi cant change in the occupation pattern of respondents is among Self-employed (down from 45% in 2010 to 36% in 2013) and Job Workers (almost doubling to 23% in 2013 from 12% in 2010).

Occupation of Respondents - Overall, by Region & State Chart 9A


Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N =

Salaried Self-Employed Job Worker Others

Overall; By Region, State

Bas

elin

e

21

12

45

22

16

27

34

23

17

12

41

30

26

4

58

12

23

16

37

24

4

48

27

21

15

16

43

26

22

3

34

41

104

71

15

2646

8

60

6

4

38

12

74

18

8



Roun

d 2

Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N =


18

23

36

23

18

32

35

15

12

19

37

32

27

22

34

17

27

19

41

13

2

59

19

20

13

22

39

26

98

35

48

22

22

36

20

27

23

37

13

17

31

40

12

56

12

18

14

Baseline - 2010Round 2 - 2013

Occupation of Respondents - by MHI, Family Size, No. of Earning Members Chart 9B

Figs in %


Overall

Bas

elin

e

21

12

45

22

Overall

1319N =

By MHI

Upto

Rs. 4,000

128

Rs. 4,001 -

Rs. 6,000

310

Rs. 6,001 -

Rs. 8,000

336

Rs. 8,001 -

Rs. 10,000

233

Rs.

10,000+

312

25

36

8

31

20

37

12

31

15

13

48

24 23

52

12

13

21

51

14

14

By Family size

Upto 4

703

4+

616

23

50

10

17

23

20

41

16

By No of Earning members

1

271

2

274

2+

307

7

20

2

71

24

53

16

7

32

47

14

7



18

23

36

23

Overall By MHI By Family size By No of Earning members

Roun

d 2

Overall

1319N =

Upto

Rs. 4,000

11 #

Rs. 4,001 -

Rs. 6,000

31

Rs. 6,001 -

Rs. 8,000

106

Rs. 8,001 -

Rs. 10,000

203

Rs.

10,000+

968

Upto 4

655

4+

664

1

217

2

686

2+

416

46

9

36

9

35

19

11

35

22

31

20

27

22

23

28

27

23

40

22

15

25

38

20

17

21

34

25

20

10

23

2

65

25

39

27

9

27

38

25

10

Figs in %



Bas

elin

e

21

12

45

22

N =

By PPI

29

36

15

20

25

41

13

21

16

54

10

20

By Well-being

Overall

1319

Upto 49

458

50-60

242

60+

619

Positive

800

Neutral

448

Negative

71

19

48

12

21

28

41

13

18

24

30

18

28

Overall



18

23

36

23

Roun

d 2

Overall

1319N =

Upto 49

134

50-60

177

60+

1008

Positive

1147

Neutral

144

Negative

28 #

32

31

24

13

29

24

24

23

21

38

22

19

22

37

23

18

29

28

21

22

21

21

29

29

▪ Table 4 features a description of the major occupation groups among respondents who are Salaried, Self-employed or Job Workers and the changes in this pattern since 2010.

Major O ccupat ions among S alar ied Respondents

Occupation Group % in 2013 % in 2010

Labour, Coolie, Construction Labour 26 36

Factory worker/Garment factory worker 16 14

Domestic maid, servant, cook 16 10

Agricultural labour, Animal husbandry labour 10 16

Support staff in Company/Offi ce 9 7

Teacher, Anganwadi teacher 5 4

Support staff in Crèche, School, Educational institution 4 1

Support staff in Anganwadi 3 5

Support staff in Retail Outlet 3 6

Support staff in Healthcare Institution 2 2

Worker-Assorted small Manufacturing enterprises 1 7

Others 5 2

Total 100 100

Table 4A

Occupation of Respondents - by PPI, Current Well-being rating Chart 9C

Figs in % Baseline - 2010Round 2 - 2013


Major O ccupat ions among S el f- employed Respondents


Other Small businesses 21 21

Petty shop, Grocery shop, General/Provisions store 18 11

Tailor/Dress maker 13 34

Vendor-Fruits, fl owers, vegetables 11 7

Help husband in business/ help in family business 11 6

Agriculture, animal husbandry 8 4

Sari business, sari sales 6 8

Vendor-Milk 4 3

Business-Clothes, Garments 4 3

Beautician/ beauty parlor/barber/salon 2 1

Embroidery, crochet, zari work, handicrafts 2 2

Total 100 100

Table 4B

Major O ccupat ions among Job Worker Respondents


Tailoring, embroidery, crochet, zari work 70.6 35.0

Beedi rolling 12.8 21.5

Agarbathi (Incense sticks) rolling 7.0 19.0

Rakhi making 1.7 2.5

Leather work/footwear 1.3 0.0

Bindi making 0.3 6.1

Paper packets/envelopes 0.3 1.2

Flower tying 0.0 4.3

Others 6.0 10.4

Total 100 100

Table 4C


MONTHLY INCOME OF RESPONDENTS

▪ The average monthly income of respondents is Rs. 4,347 in 2013 as against Rs. 2,357 in 2010, registering a growth of 47%, after adjusting for infl ation.

▪ State-wise, in 2013, this fi gure is highest in Bihar (Rs.4,941) and lowest in Rajasthan (Rs.3,472).

▪ Among respondent occupation groups, the monthly income of self-employed respondents registers the highest infl ation adjusted growth (85%) while Job Workers register the lowest growth (10%).

Respondents Monthly Income (in Rs.) - Overall, by Region & State Chart 10A

Baseline - 2010Round 2 - 2013Overall; By Region, State

▲47

▲35

▲67

▲27

▲43

▲23

▲68

▲61

▲18

▲190

▲46

▲181

4,347

♦3,932

♦

4,797

♦ 3,914

♦4,243

♦ 3,472

♦

4,777

♦4,850

♦ 3,692

♦

4,941

♦ 3,670

♦3,624

♦●

2,357

●2,322

●2,301

●2,455

●2,369

●2,255

●2,267

●2,402

●2,505 ●

1,812

●2,700 ●

1,838

Overall By Region By States

Overall

1003

North

194

South

472

East

337

Delhi, UP

114

Rajasthan

80

Karnataka

355

T.Nadu

117

W.Bengal

234

Bihar

61

Jharkhand

25#

Orissa

17#

Baseline

N =

1034 206 503 325 123 83 368 135 203 60 33 29#

Round 2

N =

Respondents Average Monthly Income in Rs.

● Baseline ♦ Round 2 ▲ Infl ation Adjusted

Growth in %


Respondents Monthly Income (in Rs.) - by MHI, Family Size, No. of Earning Members Chart 10B


▲47

4,347

♦●

2,357

Overall; By Monthly Household Income (MHI), Famly size, No.of Earning Members

Overall

▲36

3,045

♦●

1,792

▲57

3,345

♦●

1,700

▲20

3,087

♦●

2,053▲-12

2,917

♦●2,646

▲21

4,765

♦●

3,318

By MHI

▲45

4,429

♦

●2,444

▲51

4,258

♦●

2,248

By Family size

▲91♦ 9,120

●3,820

▲62

4,021

♦●

1,989

▲36

4,121

♦●

2,425

By No.of Earning Members

Overall Upto

Rs. 4,000

Rs. 4,001 -

Rs. 6,000

Rs. 6,001 -

Rs. 8,000

Rs. 8,001 -

Rs. 10,000

Rs. 10,000+ Upto 4 4+ 1 2 2+

1003 84 199 269 188 263 556 447 39 682 282Baseline

N =

Round 2

N = 1034 10 # 20 # 73 143 788 538 496 54 617 363



Growth in %



Respondents Monthly Income (in Rs.) - by PPI, Current Well-being Rating Chart 10C

Baseline - 2013 Round 2 - 2013


▲47

4,347

♦

●2,357

Overall

▲53

3,925

♦●

2,056

▲26

3,650

♦●

2,310

▲42

4,618

♦●

2,598

By PPI

▲42

4,393

♦●

2,475

▲58

4,139

♦

●2,091

▲-3

3,406

♦●2,797

By Well-being

Overall Upto 49 50-60 60+ Positive Neutral Negative

1003 353 179 472 607 349 47Baseline

N =



Growth in %

# Figs to be viewed with caution due to very small sample sizes.1034 112 134 788 905 109 20#

Round 2

N =

▲47

4,347

♦●

2,357

Overall

▲59

4,410

♦●

2,075

▲38

4,504

♦●

2,667

▲13

3,828

♦●

2,700

By Occupation of Main Earner

▲40

4,028

♦●

2,306

▲85

5,877

♦

●2,534

▲10

2,470

♦●

1,790

ByOccupation of Respondent

Overall Salaried Self-Emp Job Worker Salaried Self-Emp Job Worker

1003 533 452 15# 287 550 160Baseline

N =

1034 416 602 16# 305 430 298Round 2

N =



Growth in %


Respondents Monthly Income (in Rs.) - by Occupation of Main Earner, Respondent Chart 10D


Overall; By Occupation of Main Earner, Occupation of Respondent


▪ The monthly income of respondents has increased among 80% of the customers contacted, remained the same among 3% and declined among 17%.


Proportion of Respondents whose Monthly Income (MI) has Increased, Remained same, Decreased Chart 11

Figs in %


Overall

1034

North

206

South

503

East

325

Delhi, UP

123

Rajasthan

83

Karnataka

368

T.Nadu

135

West Bengal

203

Bihar

60

Jharkhand

33

Orissa

29 #

Round 2

N =

17

3

80

19

78

9

88

71

71

17

81

23

72

9

88

10

88

33

64

18

75

9

91

10

90

Increased Remained Same Decreased # Figs to be viewed with caution due to very small sample sizes.

3

3

3

25

3 2

3

7



Overall

1034

Upto

Rs. 4,000

10 #

Rs. 4,001 -

Rs. 6,000

20#

Rs. 6,001 -

Rs. 8,000

73

Rs. 8,001 -

Rs. 10,000

143

Rs.

10,000+

788

Upto 4

538

4+

496

1

54

2

617

2+

363

Overall; By Monthly Household Income (MHI), Family size, No.of Earning Members

17

3

80

40

60

20

65

1534

60

6

23

74

3

13

84

317

80

3

16

81

3

6

94

18

78

4

15

82

3

Round 2

N =

By PPI By Well-beingOverall

Overall

1034

Upto 49

112

50-60

134

60+

788

Positive

905

Neutral

109

Negative

20 #


17

3

80

16

4

80

12

4

84

17

3

80

15

3

82

23

6

71

20

5

75

Round 2

N =


By Occupation of Main Earner By Occupation of RespondentOverall

Overall

1034

Salaried

416

Self-Emp

602

Job worker

16#

Salaried

305

Self-Emp

430

Job Worker

298

Overall; Occupation of Main Earner, Occupation of Respondent

17

3

80

Round 2

N =

13

3

84

18

3

79

44

56

14

4

82

112

87

26

2

70 Increased Remained Same Decreased


▪ In 2013, 37% of respondents have a monthly income of more than Rs. 4,000 as against just 9% in 2010.

▪ Incomes of respondents have increased in all regions and states.


Monthly Income Distribution of Respondents - Overall, by Region & State Chart 12

Figs in %


Overall

2,357

North

2,322

South

2,301

East

2,455

Delhi, UP

2,369

Rajasthan

2,255

Karnataka

2,267

T.Nadu

2,402

West Bengal

2,505

Bihar

2,700

Jharkhand

1,812

Orissa

1,838

Average

in

Rs.

9

34

57

6

57

7

61

14

53

6

54

5

61

8

61

7

59

15

47

20

26

54

16

84

18

82

3233

40 34 31 3438


Bas

elin

e

37

1003 194 472 337 114 80 355 117 234 2,700 1,812 17#N=

Upto Rs.2000 Rs.2001-Rs.4000 Rs.4000+ # Figs to be viewed with caution due to very small sample sizes.

Overall

4,347

North

3,932

South

4,797

East

3,914

Delhi, UP

4,243

Rajasthan

3,472

Karnataka

4,777

T.Nadu

4,850

West Bengal

3,692

Bihar

4,941

Jharkhand

3,670

Orissa

3,624

Average

in

Rs.

Roun

d 2

1034 206 503 325 123 83 368 135 203 60 30 29#N=

40

23

37

41

24

35

41

17

42

36

33

31

37

24

39

47

25

28

39

19

42

46

10

44

34

36

30

35

27

38

52

21

27

34

32

34


1

61

38 41 43 29 40 43

56

2 1

56

1

70 58

1 1 1

54

3

43

56

1

OCCUPATION OF MAIN EARNER

▪ In 2013, 61% of households, up from 48% in 2010, have Main earners who are Self-Employed.

▪ State-wise, this fi gure is highest in Jharkhand (85%) & Bihar (73%).

▪ The biggest shift since 2010 in the pattern of employment of the Main earner of the household is a 13% increase in the Self-employed and a corresponding 12% decline in the Salaried, in 2013.


Occupation of Main Earner - Overall, by Region & State Chart 13A

Figs in %Overall; By Region, State



Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N =

Bas

elin

e

1

48

50 58

59

33

56 62

40

1 1

40

1

66

42

1 1 1

37

1

53

46

1 11

23

76

1

64

35

4

74

21

1

3145

55

69

Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65

Roun

d 2

N =

41

58

1

30

69

1

27

73

15

85

37

61

2



Occupation of Main Earner - by MHI, Family Size, Number of Earning Members Chart 13B

Figs in %


Overall

Bas

elin

e

Overall

1319N =

By MHI

Upto

Rs. 4,000

128

Rs. 4,001 -

Rs. 6,000

310

Rs. 6,001 -

Rs. 8,000

336

Rs. 8,001 -

Rs. 10,000

233

Rs.

10,000+

312

By Family size

Upto 4

703

4+

616


1

271

2

274

2+

307

1

48

50

1 3

36

60

1 1

45

54

1

45

54

1

57

42

2

56

42

1

50

48

1 1

48

51

1

61

37

1 1

47

52

1

43

55

1

61

38

Roun

d 2

Overall

1319N =

Upto

Rs. 4,000

11#

Rs. 4,001 -

Rs. 6,000

31

Rs. 6,001 -

Rs. 8,000

106

Rs. 8,001 -

Rs. 10,000

203

Rs.

10,000+

968

Upto 4

655

4+

664

1

217

2

686

2+

416

36

46

48

48

1

60

36

1

64

35

1

61

38

2

60

38

1

62

37

2

71

26

1 1

62

37

2

55

43

18

4 3

# Figs to be viewed with caution due to very small sample sizes. Salaried Self-Employed Job Worker Others


1

61

38


Occupation of Main Earner - by PPI, by Current Well-being Rating Chart 13C

Figs in %Overall; By PPI, Well-being

Bas

elin

e

N =

By PPI By Well-being

Overall

1319

Upto 49

458

50-60

242

60+

619

Positive

800

Neutral

448

Negative

71

Overall

1

48

50

1 1

37

62

1

50

49

1

58

40

1 1

54

45

1

42

56

1 1

42

57

Roun

d 2

N =

Overall

1319

Upto 49

134

50-60

177

60+

1008

Positive

1147

Neutral

144

Negative

28 #

1

48

51

1

57

42

1

64

35

1

62

37

1

59

38

1 7

50

43




▪ Table 5 features a description of the spectrum of major occupations among Main Earners of households for Salaried and Self-employed and the changes in this pattern since 2010.

Major O ccupat ions among Main Earners-S alar ied


Labour, Coolie, Construction Labour 32.3 26.5

Support staff in Company/Offi ce 21.7 10.5

Driver-Motorized vehicle 18.9 14.6

Factory worker/Garment factory worker 09.2 16.5

Support staff in Retail Outlet 05.5 06.1

Domestic maid, servant, cook 02.6 01.4

Teacher, Anganwadi teacher 02.4 01.2

Construction supervisor/Mason 01.8 09.5

Support staff in Healthcare Institution 01.2 00.6

Agricultural labour, Animal husbandry labour 01.0 02.5

Support staff in Crèche, School, Educational institution 00.8 00.3

Driver-Non-motorized vehicle (Rickshaw etc.) 00.4 -

Employee-Government/Municipality 00.2 00.5

Technical Tradesmen-Electrician, Carpenter, Plumber, Painter - 04.3

Others 02.0 05.5

Total 100 100

Table 5A


Major O ccupat ions among Main Earners-S el f- employed


Other Small businesses 36.6 47.7

Independent Construction supervisor/Mason/Mistry 10.0 00.6

Technical Tradesmen-Electrician, Carpenter, Plumber, Painter 08.6 04.2

Agriculture, animal husbandry 06.6 05.4

Vendor-Fruits, fl owers, vegetables 06.3 07.2

Driver-Own Motorized vehicle 06.2 07.0

Tailor/Dress maker 05.7 04.8

Petty shop, Grocery shop, General/Provisions store 05.4 08.6

Business-Clothes, Garments 04.6 05.0

Garage/Workshop/Auto Mechanic/ Metal working 03.2 01.7

Embroidery, crochet, zari work, handicrafts 01.9 00.3

Vendor-Milk 01.6 02.6

Sari business, sari sales 01.2 02.3

Beautician/ beauty parlor/barber/salon 01.2 01.1

Others 00.9 01.5

Total 100 100

Table 5B


HOUSEHOLD SIZE & NUMBER OF EARNING MEMBERS

▪ In 2013, 84% of households have more than one earning member, up from 79% in 2010.

Family Size & Number of Earning Members in Household - Overall, by Region & State Table 6A


Figs in %

Over all

By Regions By State

North South East Delhi, UP

Raja- sthan

Karn- ataka

Tamil Nadu

West Bengal Bihar Jhar-

khand Orissa

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

Average No. of

Members in Household

4.58 4.98 4.4 4.59 4.94 5.08 4.46 4.22 4.15 5.69 4.75 4.68

Number of Earning Members in Household

1 21 18 18 25 24 7 16 24 10 32 46 58

2 56 61 53 57 57 67 53 55 69 44 42 37

2+ 23 21 29 18 19 26 31 21 21 24 12 5

Total 100 100 100 100 100 100 100 100 100 100 100 100

Average No. of EM’s

in HH2.15 2.11 2.23 2.06 2.01 2.31 2.29 2.06 2.27 2.07 1.71 1.48

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

Average No. of


4.73 5.26 4.5 4.7 5.27 5.26 4.53 4.44 4.31 5.26 4.96 5.31


1 16 14 13 22 19 4 11 17 16 30 29 31

2 52 58 52 48 55 65 53 50 52 48 46 35

2+ 32 28 35 30 26 31 36 33 32 22 25 34

Total 100 100 100 100 100 100 100 100 100 100 100 100


in HH2.29 2.27 2.37 2.21 2.16 2.47 2.38 2.35 2.27 2.08 2.13 2.2



Family Size & Number of Earning Members in Household - by MHI, Family Size, No. of EM’s Table 6B


Figs in %

Over all

By MHI By Family Size

Upto Rs. 4,000

Rs. 4,001 - Rs. 6,000

Rs. 6,001 - Rs. 8,000

Rs. 8,001 - Rs. 10,000

Rs. 10,000+ Upto 4 4+

Baseline N= 1319 128 310 336 233 312 703 616

Average No. of


4.58 4.13 4.34 4.51 4.62 5.06 3.52 5.8


1 21 51 33 16 14 6 21 19

2 56 46 60 70 58 41 64 48

2+ 23 3 7 14 28 53 15 33

Total 100 100 100 100 100 100 100 100


in HH2.15 1.54 1.76 2.03 2.25 2.82 1.98 2.34

Round 2 N= 1319 11 # 31 106 203 968 655 664

Average No. of


4.73 2.82 3.97 3.84 4.39 4.94 3.47 5.97


1 16 82 55 40 27 10 20 13

2 52 9 45 53 66 50 61 43

2+ 32 9 - 7 7 40 19 44

Total 100 100 100 100 100 100 100 100


in HH2.29 1.27 1.45 1.69 1.81 2.5 2.03 2.55

Overall; By Monthly Household Income (MHI), Family Size, No. of Earning Members



Family Size & Number of Earning Members in Household - by PPI, Current Well-being Rating Table 6C


Figs in %

Over all


Upto 49 50-60 60+ Positive Neutral Negative

Baseline N= 1319 458 242 619 800 448 71

Average No. of Members in Household 4.58 4.78 4.71 4.38 4.58 4.56 4.76


1 21 22 21 19 20 20 30

2 56 55 57 57 56 57 54

2+ 23 23 22 24 24 23 16

Total 100 100 100 100 100 100 100

Average No. of EM’s in HH 2.15 2.13 2.12 2.17 2.16 2.15 1.93

Round 2 N= 1319 134 177 1008 1147 144 28 #

Average No. of Members in Household 4.73 5.21 5.23 4.57 4.73 4.78 4.32


1 16 19 15 16 16 17 18

2 52 57 46 52 51 56 57

2+ 32 24 39 32 33 27 25

Total 100 100 100 100 100 100 100

Average No. of EM’s in HH 2.29 2.13 2.45 2.29 2.31 2.23 2.11



▪ The proportion of households where the number of earning members has increased in 2013 is 30%, remained the same is 51% and decreased is 19%

Proportion of Households where number of Earning Members has Increased, Remained the same or Decreased Chart 14

Round 2 - 2013Figs in %Overall; By Region, state


Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65

Round 2

N =

Increased Remained Same Decreased

19 19 18 21 21 16 19 14 24 24 139

51 51 53 48 47 57 54 51 50 49 44

38

30 30 29 31 32 27 27 35 26 27 42 52


HOUSING STATUS

▪ In 2013, 82% of customers contacted during this study own the homes they reside in with the balance either renting or leasing their homes.

▪ This pattern refl ects no signifi cant change since 2010.

Housing Status - Overall, by Region & State Table 7

Overall; By Region, State Baseline - 2010Round 2 - 2013Figs in %

Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

Rented 18 12 19 20 16 3 19 19 22 23 21 3

Lease 2 1 3 1 1 0 4 3 0 0 2 2

Own 80 87 78 79 83 97 77 78 78 77 77 95

Total 100 100 100 100 100 100 100 100 100 100 100 100

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

Rented 15 13 14 18 18 3 13 17 21 19 21 3

Lease 3 1 5 0 2 0 6 3 0 0 0 2

Own 82 86 81 82 80 97 81 80 79 81 79 95

Total 100 100 100 100 100 100 100 100 100 100 100 100

2+ 32 28 35 30 26 31 36 33 32 22 25 34

Total 100 100 100 100 100 100 100 100 100 100 100 100


ACCESS TO BASIC AMENITIES IN DWELLING

- TOILET, RUNNING WATER, ELECTRICITY, LPG AS COOKING FUEL

▪ There has been signifi cant improvement in access to most basic amenities (such as access to running water, use of LPG and toilet in the dwelling) among a majority of households over 2010.

▪ There are improvements in all regions and states along each of these indicators.

Access to Basic Amenities Table 8


Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

Toilet in Dwelling 70 86 50 86 97 65 53 42 89 91 94 58

Access to Running

Water 54 77 39 61 84 64 44 23 49 96 90 37

Electricity in Dwelling 96 95 96 98 98 91 95 97 97 99 98 98

Main Fuel Used for

Cooking - LPG

55 86 43 52 93 74 39 51 49 80 65 17

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

Toilet in Dwelling 84 95 71 96 100 84 75 58 100 100 98 72

Access to Running

Water 71 93 65 67 97 87 73 44 57 98 100 40

Electricity in Dwelling 99 100 99 100 100 100 99 99 100 100 100 100

Main Fuel Used for

Cooking - LPG

71 94 67 62 98 87 67 68 58 88 77 26


OWNERSHIP OF RATION, VOTER ID, PAN CARDS & AADHAR NUMBER

▪ In 2013, 99% of customers contacted during the study, have Voter ID cards (93% in 2010), 94% have Ration cards (88% in 2010), 13% have PAN cards (not elicited in 2010) and as many as 57% have Aadhar numbers.

▪ The proportion of customers having Aadhar numbers is very encouraging but is also a refl ection of the states where the Aadhar Program is focusing on, at present.

Ownership of Ration, Voter ID, PAN Cards, Aadhar Number - Overall, by Region & State Table 9


Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

Ration Card 88 84 95 81 77 99 97 90 97 52 46 89

Voter ID Card 93 91 92 94 89 94 94 90 93 96 96 97

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

Ration Card 94 91 98 91 86 100 99 95 99 71 77 94

Voter ID Card 99 98 99 99 98 100 99 99 98 99 100 100

PAN Card 13 16 6 21 20 7 6 5 27 11 12 18

AADHAR/UIDAI Card 57 61 70 40 65 52 89 16 24 38 83 71


ASSET OWNERSHIP

▪ Since 2010, ownership of all consumer durables is on the rise among customers contacted during the study.

▪ In 2013, durables with the highest ownership are TVs (97%), Electric fans (96%), Mobile phones (92%) and Pressure cookers (91%).

Asset Ownership - Overall, by Region & State Table 10

Overall; By Region, State Baseline - 2010Figs in %

Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

TV 85 91 79 88 91 91 76 86 87 88 88 92

Two Wheeler 53 39 44 71 34 49 42 47 67 64 69 98

Almirah/Dressing

Table60 52 60 65 52 51 58 64 78 43 50 55

Sewing Machine 34 57 19 39 63 47 20 18 32 61 46 26

Pressure Cookers-1 or

more 74 94 63 78 98 85 65 58 78 86 83 60

Electric Fans - 1 or more 86 97 72 96 98 94 68 85 97 99 88 95

Gas Stove 52 84 46 41 95 63 43 54 30 73 60 28

Cable TV 71 71 75 65 84 46 73 80 76 52 62 40

Mixer 36 23 61 12 30 9 63 56 6 11 12 35

Refrigerator 18 41 6 19 51 20 5 10 20 17 12 23

Mobile Phone 69 81 60 74 78 88 65 44 69 83 81 75


Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

TV 97 100 95 98 99 100 93 100 97 99 98 98

Two Wheeler 73 64 66 85 59 74 65 69 83 81 85 100

Almirah/Dressing

Table84 81 87 83 90 63 85 92 91 72 75 72

Sewing Machine 48 73 30 55 77 65 31 29 51 71 65 38

Pressure Cookers-1 or

more 91 97 88 91 99 93 89 86 92 94 92 82

Electric Fans - 1 or more 96 100 90 100 100 100 87 97 100 100 100 100

Gas Stove 77 96 72 73 99 91 72 72 68 90 83 65

Cable TV 87 85 90 86 94 66 87 97 93 73 75 85

Mixer 61 50 85 37 57 36 87 81 25 37 52 72

Refrigerator 36 71 16 43 82 48 13 22 44 47 33 42

Mobile Phone 92 95 90 93 94 96 93 84 94 92 85 98

Satellite Dish/ Dish TV 16 28 11 16 24 35 12 6 4 47 40 0

Asset Ownership - Overall, by Region & State Table 10

Overall; By Region, State Round 2 - 2013Figs in %

3.2 Perceived Overall Well-being

▪ As in the Baseline survey of 2010, in this survey as well, all respondents were asked to indicate their perceived level of Well-being, keeping in mind their present circumstances and quality of lives. Responses were elicited using a 5 point scale going from “Very Good” to “Very Bad”.

▪ In this survey, respondents were also asked to indicate their likely future

levels of Well-being over the next 2 years, in an attempt to gauge their levels of optimism or pessimism as the case may be.

▪ With respect to the current Well-being, in 2013, 87% of customers contacted indicate positive Well-being (up from 60% in 2010); 11% indicate neutrality, while only 2% indicate negative Well-being (down from 6% in 2010).


Current & Likely Future Overall Well-being RatingChart 15A

Baseline - 2010 Round 2 - 2013

Figs in %

Curr

ent

Wel

l-bei

ng

Very Bad Bad Average Good Very Good

Baseline

Good 53%

Average34%

Bad5%

Very Bad1%

Very Good7%

Positive60%

Negative 6%

Neutral

Average(Max 5.00) = 3.61

Round 2Average

(Max 5.00) = 3.93

N = 1319

Good 53%

NeutralAverage

11 %

Very Bad 1%Bad 1%

Very Good10%

Positive87%

Negative 2%

Baseline Round 2

No Response Become Worse Remain Same Improve

Improve96%

Improve85%

No Response

1%

Become Worse 2%

Remain the same 12%

Remain the same 3%

Become Worse 1%

Futu

reW

ell-b

eing

▪ With respect to the future Well-being, in 2013, 96% of customers contacted expect a brighter & positive future Well-being (up from 85% in 2010); 3% indicate neutrality, while 1% indicate

things will get worse in the next 2 years/negative Well-being.

▪ Charts 15A to 15C that follow, off er more information and insights across states and various sub-groups.



Current Overall Well-being Rating- Overall, by Region & State Chart 15B (1)

Figs in %


Overall

3.61

1319

North

3.54

265

South

3.55

585

East

3.73

469

Delhi, UP

3.32

176

Rajasthan

3.97

89

Karnataka

3.60

431

T.Nadu

3.40

154

West Bengal

3.59

262

Bihar

4.12

90

Jharkhand

3.59

52

Orissa

3.86

65

Average

N=


Base

line

6

34

60

9

37

54

6

40

54

3

25

72

13

41

46

1

29

70

6

35

59

3

55

42

2

37

61

2 2

96

12

19

69

211

87

Positive Neutral Negative # Figs to be viewed with caution due to very small sample sizes.

Overall

3.93

1319

North

3.90

265

South

3.89

585

East

4.00

469

Delhi, UP

3.79

176

Rajasthan

4.12

89

Karnataka

3.94

431

T.Nadu

3.75

154

West Bengal

3.84

262

Bihar

4.27

90

Jharkhand

4.19

52

Orissa

4.12

65

Average

N=

Roun

d 2

211

87

316

81

2 7

91

113

86

5

18

77

11

89

2 3

95

3

19

78

217

81

3

97

2 2

96

215

83

6

34

60

Baseline - 2010

Current Overall Well-being Rating- Overall, by by MHI, Family Size, No. of Earning Members Chart 15B (2)

Figs in %


Overall

3.61

1319

Upto

Rs. 4,000

3.45

128

Rs. 4,001 -

Rs. 6,000

3.48

310

Rs. 6,001 -

Rs. 8,000

3.59

336

Rs. 8,001 -

Rs. 10,000

3.67

233

Rs.

10,000+

3.79

312

Upto 4

3.61

703

4+

3.61

616

1

3.57

271

2

3.61

274

2+

3.65

307


Average

N=

Base

line

8

46

46

4

23

73

4

32

64

5

35

60

7

41

52

5

34

61

6

34

60

8

32

60

5

34

61

4

34

62


Round 2 - 2013

Current Overall Well-being Rating- Overall, by by MHI, Family Size, No. of Earning Members Chart 15B (2)

Figs in %


Overall

3.93

1319

Upto

Rs. 4,000

3.45

128

Rs. 4,001 -

Rs. 6,000

3.48

310

Rs. 6,001 -

Rs. 8,000

3.59

336

Rs. 8,001 -

Rs. 10,000

3.67

233

Rs.

10,000+

3.79

312

Upto 4

3.61

703

4+

3.61

616

1

3.57

271

2

3.61

274

2+

3.65

307


Average

N=

Roun

d 2

211

87

18

9

73

316

81

415

81

315

81

110

89

310

87

212

86

211

87

212

86

210

88

Positive Neutral Negative # Figs to be viewed with caution due to very small sample sizes.


Future Overall Well-being Rating - Overall, by Region & State Chart 15C (1)

Figs in %



No response Will become worse Will remain the same Will improve


Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N=

Base

line

2 112

85

2 3

25

70

1 19

89

4 19

86

3 3

33

61

2 9

89

1 111

87

5 1

94

75

88

2

98

4 46

86

2

42

56

Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N=

Roun

d 2

3 1

96

7 1

92

1

99

3 1

96

10 1

89

2

98 100

4

96

1 2

97

1

99 100

9

91



Future Overall Wellbeing Rating- by MHI, Family Size, No. of Earning Members Chart 15C (2)

Figs in %

Overall By MHI By Family size By No. of Earning members

Overall

1319

Upto

Rs. 4,000

128

Rs. 4,001 -

Rs. 6,000

310

Rs. 6,001 -

Rs. 8,000

336

Rs. 8,001 -

Rs. 10,000

233

Rs.

10,000+

312

Upto 4

703

4+

616

1

271

2

274

2+

307

Overall; By Monthly Household Income (MHI), Family size, No. of Earning Members

N=

Base

line

2 112

85

No response Will become worse Will remain the same Will improve


5 2

27

66

2 3

13

82

3 112

84

2 210

86

1 18

90

3 111

85

2 214

82

3 2

17

78

2 112

85

3 210

85

Overall

1319

Upto

Rs. 4,000

11 #

Rs. 4,001 -

Rs. 6,000

31

Rs. 6,001 -

Rs. 8,000

106

Rs. 8,001 -

Rs. 10,000

203

Rs.

10,000+

968

Upto 4

655

4+

664

1

217

2

686

2+

416N=

Roun

d 2

3 1

96

18

82

6

94

7

93

4

96

2 1

97

3 1

96

2 1

97

5 1

94

3 1

96

2

98

3.3 Education of Children of School Going Age

▪ In 2013, 72% of households (71% in 2010) have one or more children of school going age that attend school.

▪ Of the total number of such children in these households,

• 67% come from households with 2 or more children attending school (66% in 2010).

• 40% of the children attend a private school (28% in 2010).

• 50% of the children attend private tuition (46% in 2010).



Proportion of Households whose kids of school going age attend school Chart 16A

Figs in %Overall; By Region, State

Baseline

N=

Overall

1319

1319

North

265

265

South

585

585

East

469

469

Delhi, UP

176

176

Rajasthan

89

89

Karnataka

431

431

T.Nadu

154

154

West Bengal

262

262

Bihar

90

90

Jharkhand

52

52

Orissa

65

65

Round 2

N=


71 72 7580

65 6676 75 74

8076

79

66 6662

68 6972

9486 88

81

68 71


Baseline

N=


Overall

1319

Upto

Rs. 4,000

128

Rs. 4,001 -

Rs. 6,000

310

Rs. 6,001 -

Rs. 8,000

336

Rs. 8,001 -

Rs. 10,000

233

Rs.

10,000+

312

Upto 4

703

4+

616

1

271

2

274

2+

307

1319 11 # 31 106 203 968 655 664 217 686 416

Round 2

N=

71 72

Baseline Round 2 # Figs to be viewed with caution due to very small sample sizes.

6573 74

65

77 74 69

82

6570

6064

83 8174

8277 80

52 55



Number of Kids of School Going Age Going to School - Overall, by Region & State Chart 16B

Overall; By Region, State Figs in % Base: Number of Children


Overall

934

North

198

South

379

East

357

Delhi, UP

130

Rajasthan

68

Karnataka

283

T.Nadu

96

West Bengal

182

Bihar

85

Jharkhand

46

Orissa

44N=

Base

line

7

19

40

34

13

26

39

22

4

16

46

34

6

17

37

40

15

25

42

18

9

28

34

29

415

46

35

3

18

48

31

2 5

40

53

15

39

25

21

4

35

31

30

75

52

36

1 Kid in HH 2 Kids in HH 3 Kids in HH 4+ Kids in HH


Overall

953

North

211

South

388

East

354

Delhi, UP

141

Rajasthan

70

Karnataka

284

T.Nadu

104

West Bengal

189

Bihar

77

Jharkhand

42

Orissa

46N=

Roun

d 2

8

17

42

33

16

25

40

19

4

16

46

34

8

14

37

41

18

21

43

18

13

31

35

21

416

45

35

516

50

39

2 11

37

50

23

22

26

29

10

21

43

26

211

46

41

Baseline - 2010

Type of School attended - Overall, by Region & State Chart 16C



Overall

934

North

198

South

379

East

357

Delhi, UP

130

Rajasthan

68

Karnataka

283

T.Nadu

96

West Bengal

182

Bihar

85

Jharkhand

46

Orissa

44N=

Base

line

7

28

65

8

32

60

6

30

64

8

24

68

9

22

69

4

50

46

7

32

61

3

22

75

113

86

22

38

40

13

61

26

7

93

Government Private Others



Round 2 - 2013

Type of School attended - Overall, by Region & State Chart 16C



Roun

d 2

6

40

54

11

41

48

4

42

54

6

36

58

11

28

61

10

69

21

5

42

53

1

41

58

2

22

76

13

55

32

17

60

23

39

61

Overall

953

North

211

South

388

East

354

Delhi, UP

141

Rajasthan

70

Karnataka

284

T.Nadu

104

West Bengal

189

Bihar

77

Jharkhand

42

Orissa

46N=

Government Private Others



Kids attending Private Tuition - Overall, by Region & State Chart 16D

Figs in % Base: Number of ChildrenOverall; By Region, State

Baseline

N=

Overall

934

953

North

198

211

South

379

388

East

357

354

Delhi, UP

130

141

Rajasthan

68

70

Karnataka

283

284

T.Nadu

96

104

West Bengal

182

189

Bihar

85

77

Jharkhand

46

42

Orissa

44

46

Round 2

N=


4650

36

50

17

27

8176

53 52

4

44

17

2620

30

79

53

67

52

72


8086

91

3.4 Access to Banking Services

▪ In 2013, 63% of customers contacted during this study, have bank accounts, which is very encouraging, as against barely 39% in 2010.

▪ Of these, 54% have carried out a banking transaction in the last 30 days while 18% have transacted more than 90 days prior.

▪ Among those who have bank accounts, 36% claim to receive sms-based updates on their mobile phones from the bank, each time they transact against their accounts.


Access to Banking Services Table 11

Baseline - 2010Round 2 - 2013Figs in %


Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

Access to Banking Services

39 42 31 48 40 45 33 25 43 48 56 65

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

Access to Banking Services

63 64 60 66 65 63 62 53 60 68 83 78

Over all

By MHI By Family Size By No. of EMs

Upto Rs.

4,000

Rs. 4,001 - Rs. 6,000

Rs. 6,001 - Rs.

8,000

Rs. 8,001 - Rs.

10,000

Rs. 10,000

+Upto 4 4+ 1 2 2+

Baseline N= 1319 128 310 336 233 312 703 616 271 741 307

Bank Account 39 27 39 36 40 47 42 37 45 37 40

Round 2 N= 1319 11 # 31 106 203 968 655 664 217 686 416

Bank Account 63 82 61 58 60 64 64 62 69 63 60

Overall; By Monthly Household Income (MHI), Family Size, No. of Earing Members

Over all


Upto 49 50-60 60+ Positive Neutral Negative

Baseline N= 1319 458 242 619 800 448 71

Bank Account 39 25 32 52 3 34 27

Round 2 N= 1319 134 177 1008 1147 144 28#

Bank Account 63 48 46 68 63 62 57





Last banking transaction & receipt of transaction updates on Mobile Phone Chart 17

Figs in % Overall; By Region, State


Roun

d 2

Overall

832

North

170

South

351

East

311

Delhi, UP

114

Rajasthan

56

Karnataka

269

T.Nadu

82

West Bengal

156

Bihar

61

Jharkhand

43

Orissa

51N=

up to 30 days ago 31-60 days ago 61-90 days ago 91-120 days ago 121-180 days ago More than 180 days ago


11

52

9

19

54

9

72

5

31

46

17

12

14

15

51

6

8

47

15

60

9

71

5

38

40

11

74

4

18

56

16

21

15

16

50

18

2

10

12

58

612

5

17

69

3

25

8

48

12

14

2

16

14

42

42

4

12

10

68

16

36 31 27 49 30 32 27 28 49 46 3067

Updates on Mobile about bank account Transaction


Overall

Overall

832N=

Roun

d 2

11

52

9

19

54

By MHI

Upto

Rs. 4,000

9#

Rs. 4,001 -

Rs. 6,000

19#

Rs. 6,001 -

Rs. 8,000

61

Rs. 8,001 -

Rs. 10,000

121

Rs.

10,000+

622

11

11

78

16

55

16

58

73

8

21

61

12

74

9

21

47

12

52

10

18

53

By Family size

Upto 4

419

4+

413

11

32

8

17

59

72

11

20

49


1

150

2

432

2+

250

9

93

13

60

12

5

8

52

21

11

33

14

18

51

Updates on Mobile about bank account Transaction

11

62

36 2247 38 34 36 38 34 47 34 32



N =

Overall

Roun

d 2


Overall

832

11

52

9

19

54

Upto 49

64

50-60

82

60+

686

Positive

727

Neutral

89

Negative

16#

19

2 2

9

54

111

13

20

55

10

63

9

19

53

11

53

9

18

54

1121

11

22

53

66

38

50

14

Updates on Mobile about bank account Transaction36 33 35 37 35 42 38

up to 30 days ago 31-60 days ago 61-90 days ago 91-120 days ago 121-180 days ago More than 180 days ago




Monthly Household Income (MHI) - Overall, by Region & State Chart 18A



Base

line

Overall

8,391

1319

North

8,472

265

South

8,501

585

East

8,207

469

Delhi, UP

8,294

176

Rajasthan

8,826

89

Karnataka

8,763

431

T.Nadu

7,768

154

West Bengal

8,475

262

Bihar

9,123

90

Jharkhand

7,994

52

Orissa

6,028

65

Average

in Rs.

N=

up to Rs. 4,000 Rs.4,001 - Rs. 6,000 Rs.6,001 - Rs. 8,000 Rs.8,001 - Rs. 10,000 Rs.10,000+


23

18

25

24

10

22

19

26

28

5

24

18

24

20

14

23

17

27

26

7

20

22

24

28

6

29

13

29

27

2

28

17

22

19

14

16

19

29

22

14

26

18

29

24

3

32

20

19

20

9

19

19

37

17

8

5

8

23

49

15

3.5 Monthly Household Income (MHI)

▪ In 2013, 74% of customers contacted during the survey have a Monthly Household Income (MHI) of more than Rs. 10,000 as against just 23% in 2010.

▪ Undoubtedly, a combination of factors may have contributed to this phenomenon such as increase in incomes of the respondents and other earning members of the household, infl ation, signifi cant rise in wages over the last 3 years, the likely impact of the MNREGA scheme, additional earning members in the household, the main earner of the household shifting to a more remunerative occupation, besides a host of other factors.

▪ In absolute terms, the average household income in 2013 is Rs. 15,864 from Rs. 8,391 in 2010, representing an increase of 51%, after adjusting for infl ation.

▪ In 2013, the MHI has increased among 88%, declined among 11% and remained the same among 1% of households contacted during the study.



Roun

d 2

Overall

15,864

1319

North

16,072

265

South

16,541

585

East

14,902

469

Delhi, UP

16,846

176

Rajasthan

14,541

89

Karnataka

16,232

431

T.Nadu

17,409

154

West Bengal

14,624

262

Bihar

13,505

90

Jharkhand

15,374

52

Orissa

17,582

65

Average

in Rs.

N=



74

15

82 1

75

7

17

1

78

12

63

67

19

112 1

76

17

6 1

74

16

10

78

13

63

77

10

82

65

20

132

67

22

91 1

75

12

13

69

15

29

51 3




Monthly Household Income (MHI) - by Family Size, No. of Earning Members Chart 18B

Figs in % Overall; By Family size, No.of Earning Members

23

18

25

24

10

Average

in Rs.

N=

Overall

8,391

1319

Upto 4

7,873

703

1

6,433

271

2

7,926

274

2+

11,240

307

4+

8,982

616

Overall By Family Size By No.of Earning Members

Base

line

19

18

26

26

11

30

18

24

20

8

6

12

20

38

24

17

18

32

25

8

55

21

16

7 1

Average

in Rs.

N=

Overall

15,864

1319

Upto 4

13,887

655

1

11,513

217

2

13,960

686

2+

21,274

416

4+

17,815

664

Overall By Family Size By No.of Earning Members

Roun

d 2 74

15

82 1

65

18

123 2

81

13

42

44

25

19

84

70

20

82

94

42



Monthly Household Income (MHI) - by PPI & Current Well-being Rating Chart 18C

Figs in % Overall; By PPI, Well-being

Average

in Rs.

N=

23

18

25

24

10

Overall

8,391

1319

Overall By PPI By Well-being

Base

line

Upto 49

7,237

458

50-60

8,497

242

60+

9,203

619

Positive

8,974

800

Neutral

7,449

448

Negative

7,758

71

14

16

26

28

16

28

14

24

27

7

29

20

26

19

6

29

19

25

20

7

16

17

26

28

13

17

13

24

32

14

74

15

82 1



Average

in Rs.

N=

Overall

15,864

1319

Roun

d 2

Upto 49

12,428

134

50-60

15,592

177

60+

16,369

1008

Positive

16,073

1147

Neutral

14,800

144

Negative

12,774

28#

58

21

11

82

74

14

83 1

75

15

8 11

76

14

7 21

64

21

113 1

50

25

14

47



Monthly Household Income (MHI) - by Occupation of Main Earner and Occupation of Respondent Chart 18D

Figs in % Overall; By Occupation of Main Earner, Occupation of Respondent

60

23

12

5

74

15

82 1

Average

in Rs.

N=

Overall

8,391

1319

Overall By Occupation of Main Earner By Occupation of Respondent

Base

line

Salaried

7,863

657

Self-Emp

8,934

643

Job Worker

7,763

16 #

20

15

28

25

12

27

21

23

22

7

36

13

13

13

25

33

33

33

Others

10,767

3 #

Salaried

8,086

291

Self-Emp

8,871

599

Job Worker

8,681

163

23

18

27

21

11

26

20

27

19

8

27

17

27

23

6

17

12

20

36

15

Others

7,465

266

23

18

25

24

10

Average

in Rs.

N=

Overall

15,864

1319

Roun

d 2

Salaried

15,641

492

Self-Emp

16,149

809

Job Worker

8,908

16 #

Others

11,250

2 #

Salaried

14,878

305

Self-Emp

17,566

472

Job Worker

14,946

298

Others

14,927

244

74

14

83 1

74

16

82

37

13

19

6

25

50

50

72

14

84 2

82

10

7 1

72

19

71 1





Proportion of respondents whose Monthly Household Income (MHI) has increased, remained same, decreased Chart 19

Figs in %



111

88

112

87

91

90

141

85

102

88

151

84

11

89

62

92

14

86

19

1

80

18

92

95

Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N=

86

Round 2

N=

Overall

1319

Overall

111

88

Upto 4

655

4+

664

By Family Size

15

85

82

90

1

217

2

686

2+

416

By No.of Earning Members

21

2

77

131

86

4

96

Upto 49

134

50-60

177

60+

1008

By PPI

134

83

11

89

11

88

1

Positive

1147

Neutral

144

Negative

28 #

11

1

88

113

86

32

61

By Well-being

7

Overall; By Family size, No. of Earning Members, PPI, Well-being



Round 2

N=

Overall

1319

Overall

111

88

By Occupation of Main Earner By Occupation of Respondent

Salaried

492

Self-Emp

809

Job Worker

16#

Others

2 #

Salaried

305

Self-Emp

472

Job Worker

298

Others

244

11 101 1

88 89

111

88

54

46

20

80

101

89

101

89

14

86

152

83



3.6 Monthly Household Expenses (MHE)

▪ In 2013, the average Monthly Household Expenses (MHE) is Rs. 12,495 as against Rs. 8,704 in 2010, an increase of 15% after adjusting for infl ation.

▪ The Monthly Household Expenses (MHE) have increased among 81% of households and decreased among 19% of households, over 2010.

▪ Comparison of the data in 2013 and 2010 relating to composition of MHE refl ects a fair degree of consistency in the data, (Refer Table 12).

Composit ion of Monthly Household Expenses (MHE) by Value

Head of Expense % in 2013 % in 2010

Rent 2.4 2.3

Electricity 4.1 3.8

Water 0.5 0.5

Cooking Fuel 4.5 4.5

Sub-Total 11.5 11.1

Food, Provisions 42.2 43.0

School Fees, Books etc. 6.5 6.5

Conveyance 2.4 3.4

Health-Care 4.0 4.3

Sub-Total 55.1 57.2

Loan Repayments 11.5 13.3

Savings 17.9 13.3

Sub-Total 29.4 26.6

Others, Miscellaneous Expenses 4.0 5.1

Grand Total 100 100

Table 12


20

63

17

32

55

10

26

56

9

19

62

18

22

65

13

35

53

9

16

66

17

11

26

54

9

20

68

11

26

62

11

13

30

48

9


Monthly Household Expenses (MHE) - Overall, by Region & State Chart 20A



Overall

8,704

1319

North

9,854

265

South

8,318

585

East

8,698

469

Delhi, UP

10,299

176

Rajasthan

8,141

89

Karnataka

8,510

431

T.Nadu

7,848

154

West Bengal

9,139

262

Bihar

8,481

90

Jharkhand

7,500

52

Orissa

7,324

65

Average

in Rs.

N=

Base

line

1

Housing & Utilties Food, Provisions, Groceries, Education, Conveyance, Health Care Loan Repayments, Savings Others, Misc. Expenses # Figs to be viewed with caution due to very small sample sizes.

3 9 1 1 3 1 1 2

27

57

11

5

Overall

12,495

1319

North

14,949

265

South

11,109

585

East

13,153

469

Delhi, UP

16,490

176

Rajasthan

11,856

89

Karnataka

11,022

431

T.Nadu

11,703

154

West Bengal

12,597

262

Bihar

13,968

90

Jharkhand

11,941

52

Orissa

15,334

65

Average

in Rs.

N=

Roun

d 2

29

55

12

24

57

18

34

52

9

28

57

10

23

56

20

26

61

12

34

52

9

33

52

11

28

56

10

24

63

10

26

63

12

34

53

8

4 5265511551



Monthly Household Expenses (MHE) - by MHI, Family Size, No. of EM’s Chart 20B

Figs in % Overall; By Monthly Household Income (MHI), Family size, No. of Earning Members

Overall

8,704

1319

Upto

Rs. 4,000

5,780

128

Rs. 4,001 -

Rs. 6,000

6,682

310

Rs. 6,001 -

Rs. 8,000

7,842

336

Rs. 8,001 -

Rs. 10,000

9,293

233

Rs.

10,000+

11,847

312

Upto 4

8,393

703

4+

9,053

616

1

7,445

271

2

8,639

274

2+

9,915

307


Average

in Rs.

N=

Base

line

27

57

11

5

20

65

12

23

61

13

26

58

12

27

58

11

31

53

10

28

54

11

25

60

11

24

61

12

27

57

12

28

57

10

3 3 5 5 7 6 4 4 5 6


Overall

12,495

1319

Upto

Rs. 4,000

5,119

11 #

Rs. 4,001 -

Rs. 6,000

6,667

31

Rs. 6,001 -

Rs. 8,000

8,960

106

Rs. 8,001 -

Rs. 10,000

10,178

203

Rs.

10,000+

13,581

968

Upto 4

11,407

655

4+

13,626

664

1

12,105

217

2

11,795

686

2+

13,839

416

Average

in Rs.

N=

Roun

d 2

29

55

12

4

17

62

16

24

58

12

26

57

12

25

59

12

30

54

11

31

53

12

25

60

11

24

61

12

27

57

12

28

57

10

6 5 5 4 4 5 4 4 5 6



Monthly Household Expenses (MHE) - by PPI & Current Well-being Rating Chart 20C

Figs in % Overall; By PPI, Well-being

Average

in Rs.

N=

Overall

8,704

1319

Upto 49

7,046

458

50-60

8,910

242

60+

9,756

619

Positive

8,996

800

Neutral

8,230

448

Negative

7,816

71

27

57

11

5

Base

line

28

59

9

28

55

12

26

57

12

28

56

11

25

59

12

21

63

14


4 5 5 5 4 2

Average

in Rs.

N=

Overall

12,495

1319

Upto 49

9,124

134

50-60

11,638

177

60+

13,016

1008

Positive

12,449

1147

Neutral

13,276

144

Negative

10,819

28 #

33

57

6

31

55

9

29

55

12

30

55

1

26

55

15

28

58

12

29

55

12

4 4 5 4 4 4 2




Monthly Household Expenses (MHE) - by Occupation of Main Earner, Respondent Chart 20D


Base

line

Overall

8,704

1319

Overall

27

57

11

5

Average

in Rs.

N=


Salaried

8,075

657

Self-Emp

9,261

643

Job Worker

9,166

16 #

Others

6,513

3 #

By Occupation of Respondent

Salaried

7,709

291

Self-Emp

9,292

599

Job Worker

9,155

163

Others

8,168

266

25

59

12

28

56

11

25

60

10

24

59

17

25

59

11

27

56

11

26

60

11

25

58

12

4 5 5 5 56 3

29

55

12

4

Overall

12,495

1319

Average

in Rs.

N=

Salaried

12,130

492

Self-Emp

12,773

809

Job Worker

8,785

16 #

Others

13,631

2 #

Salaried

11,046

305

Self-Emp

13,471

472

Job Worker

11,944

298

Others

13,196

244

Roun

d 2

30

55

11

28

56

12

30

52

13

26

43

31

31

53

11

30

54

12

29

57

11

26

58

12

4 4 5 5 44 3




Proportion of respondents whose Monthly Household Expenses has increased, remained same, decreased Chart 21



Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65

Round 2

N=

19

81

26

74

15

85

21

79

26

74

27

73

18

82

6

94

25

75

24

76

6

94

13

87

Overall

Overall

1319

By MHI

Upto

Rs. 4,000

11 #

Rs. 4,001 -

Rs. 6,000

31

Rs. 6,001 -

Rs. 8,000

106

Rs. 8,001 -

Rs. 10,000

203

Rs. 10,000+

968

By Family size

Upto 4

655

4+

664


1

217

2

686

2+

416

19

81

45

55

36

64

35

65

21

79

17

83

23

77

16

84

21

79

20

80

18

82

Round 2

N=


Increased Remained Same Decreased # Figs to be viewed with caution due to very small sample sizes.

Overall; By PPi, Well-being

Overall

1319

Upto 49

134

50-60

177

60+

1008

Positive

1147

Neutral

144

Negative

28 #


Round 2

N=

19

81

17

83

21

79

19

81

19

81

18

82

21

79





Overall

1319


Round 2

N=

19

81

Salaried

492

Self-Emp

809

Job Worker

16#

Others

2 #

Salaried

305

Self-Emp

472

Job Worker

298

Others

244

19

81

19

81

37

63

50

50

17

83

18

82

22

78

20

80


Respondents Contributions to Monthly Household income (MHI) & Monthly Household Expenses (MHE) - Overall, by Region, State

Table 13


Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

Respondent's Income as % of Monthly House hold Income (MHI)

28 27 27 30 29 26 26 31 30 30 23 30

Respondent's Income as % of Monthly House hold Expense (MHE)

27 24 28 28 23 28 27 31 27 32 24 25

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

Respondent’s Income as % of Monthly House hold Income (MHI)

27 24 29 26 25 24 29 28 25 37 24 21

Respondent’s Income as % of Monthly House hold Expense (MHE)

35 26 43 30 26 29 43 41 29 35 31 24


3.7 Notional Monthly Household Surplus/Defi cit

▪ The notional average monthly household surplus is Rs. 3,369 in 2013 as against a notional average monthly defi cit of Rs. 313 in 2010.

▪ Most households with a monthly household income of below Rs. 10,000 have a monthly defi cit and fi nd it very diffi cult to generate a surplus. However, in such households, the

extent of the monthly defi cit seems to on the decline, going by comparison of such data between 2013 and 2010.

▪ All sub-groups seem to be relatively better off fi nancially than they were in 2010 and those with shortfalls have been able to reduce their monthly defi cits.


Notional Monthly Household Surplus/Defi cit (in Rs.) - Overall, by Region & State Chart 22A



Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N=

♦ Monthly Household Income (MHI) ♦ Monthly Household Expenses (MHE) □ Notional Monthly Surplus /Defi cit

♦♦8,704

8,391

-313

9,854

8,472

-1,382

♦

♦ ♦♦8,501

8,318183 253

685

8,698

8,207

-491♦♦ ♦

9,85410,299

8,294

♦

♦♦♦

♦ ♦-2,005

-668

8,826 8,763

8,1418,510

7,848

7,768

-80 ♦♦

9,139

8,475

♦♦

9,123

8,481♦♦

6427,994

7,500

495 ♦♦

-1296

7,324

6,028

♦

♦

Base

line

Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N=

♦♦16,846

16,490

35614,902

13,153

1,749 ♦♦ 14,624

12,597♦

♦2,027Ro

und

2 ♦15,864

12,495

3,369

♦

♦♦16,072

14,949

1,123

♦16,541

12,495

5,432

♦

♦14,541

11,856

2,685

♦

♦16,232

11,022

5,209

♦

♦17,409

11,703

5,706

♦

♦

-463

♦13,968

13,505

15,374

11,941

♦3,433

♦

17,582

15,334

♦2,248

♦


♦ Monthly Household Income (MHI) ♦ Monthly Household Expenses (MHE) □ Notional Monthly Surplus /Defi cit


Notional Monthly Household Surplus/Defi cit (in Rs.) - by MHI, Family Size, No. of EM’s Chart 22B


Overall

Overall

1319

By MHI

Upto

Rs. 4,000

128

Rs. 4,001 -

Rs. 6,000

310

Rs. 6,001 -

Rs. 8,000

336

Rs. 8,001 -

Rs. 10,000

233

Rs. 10,000+

312

By Family size

Upto 4

703

4+

616


1

271

2

274

2+

307

19

81

N=

♦♦8,704

8,391

-313

Base

line

♦7,445

6,433

-1,012♦

♦11,240

9,915

1,325

♦

♦♦8,639

7,926

-715♦♦

9,053

8,982

-71♦♦8,393

7,873

-520

♦♦14,375

11,847

2,529

♦♦9,293

9,155

-138

♦♦5,780

3,199

-2,581♦♦

6,682

5,284

-1,398♦♦

7,842

7,148

-694

Overall

1319

Upto

Rs. 4,000

11 #

Rs. 4,001 -

Rs. 6,000

31

Rs. 6,001 -

Rs. 8,000

106

Rs. 8,001 -

Rs. 10,000

203

Rs. 10,000+

968

Upto 4

655

4+

664

1

217

2

686

2+

416N=

Roun

d 2 ♦

15,864

12,495

3,369

♦

♦♦12,105

11,513

-592

♦♦6,667

5,524

-1,143♦♦

5,119

3,603

-1,516

♦♦8,960

7,388

-1,572♦♦

10,178

9,308

-870

♦♦

18,638

13,581

5,057 ♦♦

13,887

11,407

2,480

♦♦

17,815

13,626

4,190 ♦♦13,960

11,795

2,166

♦

♦

21,274

13,839

7,435


Notional Monthly Household Surplus/Defi cit (in Rs.) - by PPI & Current Well-being Rating Chart 22C

Overall; By PPi, Well-being

Overall

1319

7,046

7,237♦ 192♦

Upto 49

458


N=

♦♦8,704

8,391

-313

Base

line

50-60

242

8,910

8,497♦ -413♦

60+

619

9,756

9,203♦ -553♦

Positive

800

8,996

8,974♦ -22♦

Neutral

448

8,230

7,449♦ -780♦

Negative

71

7,816

7,758♦ -57♦

Overall

1319

12,428

7,237

♦

3,304♦

Upto 49

134


N=

Roun

d 2

50-60

177

60+

1008

Positive

1147

Neutral

144

Negative

28 #

♦15,864

12,495

3,369

♦

12,774

10,819

♦

1,955

♦

14,800

13,276

♦

1,524

♦

16,073

12,449

♦

3,624♦

16,369

13,016

♦

3,353♦

15,592

11,638

♦

3,954♦



♦♦8,704

8,391

-313

Base

line


Notional Monthly Household Surplus/Defi cit (in Rs.) - by Occupation of Main Earner, Respondent Chart 22D


Overall

1319


Round 2

N=

Salaried

657

Self-Emp

643

Job Worker

16#

Others

3 #

Salaried

291

Self-Emp

599

Job Worker

163

Others

266

8,075

7,862

♦

-212

♦

9,261

8,934

♦

-327

♦

8,168

7,465-703♦♦

9,155

8,681

-474♦♦9,292

8,871-421♦♦8,086

7,709

♦

377

♦

9,166

7,763♦ -1,403♦

10,767

6,513

♦

4,254♦

Overall

1319

Round 2

N=

Salaried

492

Self-Emp

809

Job Worker

16#

Others

2 #

Salaried

305

Self-Emp

472

Job Worker

298

Others

244

Roun

d 2 ♦

15,864

12,495

3,369

♦

14,927

13,196

1,732

♦♦

15,091

11,942

3,149

♦

♦

17,351

13,505

3,846

♦♦14,874

11,007

3,867

♦♦

19,004

17,110

-1,894 ♦♦

9,270

8,979-291♦♦

16,056

12,736

3,320

♦♦

15,767

12,194

3,574

♦♦

♦ Monthly Household Income (MHI)

♦ Monthly Household Expenses (MHE)

□ Notional Monthly Surplus /Defi cit



Notional Monthly Household Surplus/Defi cit as a % of Monthly Household Income (MHI) - Overall, by Region & State

Chart 23A



Overall

1319

1319

North

265

265

South

585

585

East

469

469

Delhi, UP

176

176

Rajasthan

89

89

Karnataka

431

431

T.Nadu

154

154

West Bengal

262

262

Bihar

90

90

Jharkhand

52

52

Orissa

65

65

Baseline

N=

Round 2 N=

21

- 4

-16

2

-6

- 24

83

-1-8

7

-3

6

-21

13

22

14

3332

18

2

12

33

7



Upto

Rs. 4,000

128

11 #

Rs. 4,001 -

Rs. 6,000

310

31

Rs. 6,001 -

Rs. 8,000

336

106

Rs. 8,001 -

Rs. 10,000

233

203

Rs. 10,000+

312

968

Upto 4

703

655

4+

616

664

1

271

217

2

274

686

2+

307

416

21

- 4


Notional Monthly Household Surplus/Defi cit as a % of Monthly Household Income (MHI) - by MHI, Family Size, No. of EM’s

Chart 23B

Figs in %

Overall

1319

1319

Baseline

N=

Round 2 N=



-42-21

-21-9

27 18 24

-5

1635

-81

-26 -10-2

18

-7 -1-16

-912



Notional Monthly Household Surplus/Defi cit as a % of Monthly Household Income (MHI) - by PPI & Current Well-being Rating

Chart 23C

Figs in %

Upto 49

458

134

50-60

242

177

60+

619

1008

Positive

800

1147

Neutral

448

144

Negative

71

28 #

Overall

1319

1319


21

- 4

2521 21

23

10

15

3

-5-6

0.02

-10

-1


Baseline

N=

Round 2 N=

Baseline Round 2



Notional Monthly Household Surplus/Defi cit as a % of Monthly Household Income (MHI) - by Occupation of Main Earner, Respondent

Chart 23D



By Occupation of Respondent

Salaried

657

492

Self-Emp

643

809

Job

Worker

16#

16#

Overall

1319

1319

Baseline

N=

Round 2 N=

Salaried

291

305

Self-Emp

599

472

Job

Worker

163

298

21

- 4

22

-3 -4

21

26

2320

-5-5

5

-18

1

Overall

Baseline Round 2



3.8 Savings

▪ In 2013, 81% of customers contacted during the survey indicate their households are able to save some money from time to time, up from 63% in 2010. This proportion has increased over that of 2010 in all the regions and states.

▪ Of these households, 64% are able to save some amount every month

▪ The average amount saved per year is about Rs. 1,469 (Rs. 1,169 in 2010).


Reported Savings - Overall, by Region & State Table 14


Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

Do you save some money from time to time?

63 44 65 71 46 39 83 14 79 58 62 66

Baseline N= 829 116 380 333 81 35 359 21 # 206 52 32 43

Whether able to save every month

78 85 82 72 80 97 83 67 73 79 72 58

Average Savings per year in Rs

1,169 821 1,517 894 786 904 1,546 1,026 995 864 1,017 353

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

Do you save some money from time to time?

81 73 84 82 62 96 92 61 82 97 79 68

Round 2 N= 1072 194 492 386 109 85 398 94 214 87 41 44

Whether able to save every month

64 70 50 80 56 87 52 41 76 92 95 61

Average Savings per year in Rs

1,469 1,851 1,190 1,633 2,179 1,431 1,196 1,164 1,421 1,378 1,987 2,834


3.9 Insurance - Life & Health

▪ In 2013, 24% of customers contacted during the survey, claim to have a Life Insurance policy against 16% in 2010.

▪ Barely 3% claim to have a Health Insurance policy, an identical proportion to that obtained in the 2010 survey.

Life Insurance Policy - Overall, by Region & State Chart 24A

Baseline - 2010Round 2 - 2013Figs in %Overall; By Region & State

Baseline

N=

Overall

1319

1319

North

265

265

South

585

585

East

469

469

Delhi, UP

176

176

Rajasthan

89

89

Karnataka

431

431

T.Nadu

154

154

West Bengal

262

262

Bihar

90

90

Jharkhand

52

52

Orissa

65

65

Round 2

N=


1624

612

16 18 21

36

37 10

2219 21

511

21

34

20

31

17

3126

57


Health Insurance Policy - Overall, by Region & State Chart 24B


Baseline

N=

Overall

1319

1319

North

265

265

South

585

585

East

469

469

Delhi, UP

176

176

Rajasthan

89

89

Karnataka

431

431

T.Nadu

154

154

West Bengal

262

262

Bihar

90

90

Jharkhand

52

52

Orissa

65

65

Round 2

N=


3 3 2 3 3 3 2 4 2 3 1 2 3 1 37

1 3 4 2 2 3

15



3.10 Other Loans Taken & Preferred Sources for Next Loan

▪ In 2013, 29% of customers contacted during the study, as against 20% in 2010, claim to have taken one or more loans that are being serviced by them at present, from sources other than Ujjivan.


Loans from sources other than Ujjivan - Overall by Region & State Table 15A


Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

Loans Taken 20 3 29 18 4 1 35 12 16 9 17 40

Average No. of Loans Taken

1.10 1.00 1.11 1.09 1.00 1.00 1.12 1.00 1.09 1.00 1.00 1.15

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

Loans Taken 29 11 28 40 6 21 32 15 43 28 35 46

Average No. of Loans Taken

1.05 1.13 1.04 1.05 1.09 1.16 1.04 1.04 1.02 1.00 1.11 1.17


▪ In 2013, the purposes for which loans have been taken from sources other than Ujjivan are business needs (58%, up from 51% in 2010) and for a wide assortment of other needs.

Purpose of Loans Taken f rom O ther S ources

Purpose of Loan % in 2013 % in 2010

Base: Number of Loans 397 288

Business-Unspecifi ed 49 34

For business (various businesses mentioned) 9 17

To Buy Land, Site, Building House 7 6

To Buy Vehicle/Repair a Vehicle 5 5

Marriage Purpose (Daughter) 4 6

Children's Education 3 3

To Buy Cow, Livestock 3 5

Medical, Health Expenses 2 7

For Agriculture, Cultivation 2 3

To buy Jewellery, Recover from Pawn Broker 2 2

House Purpose, Household Expenses 1 2

For Personal Expenses, Household Articles, Durables 1 2

To Repay Existing Loan 1 1

Capital Expenditure for Business(Machine) 1 1

To repair/renovate house 3 2

For House on Lease/Rent 1

Others 3 2

No Response 4 1

Total 100 100

Table 15B


▪ In 2013, the major source from which other loans have been taken are Microfi nance institutions (MFIs) reported by 79% of those who have taken other loans. This proportion was 61% in 2010. Loans from ‘Money-lenders’ seem to have dropped with barely 3% reporting having taken loans from them in 2013, as against 15% in 2010.

Loans f rom S ources O ther than Uj j ivan

Source of Loan % in 2013 % in 2010

Base: Number of Loans 397 288

MFIs 79 61

Self Help Groups (SGH), Sanghas 7 8

Financiers, Pawn Brokers, Money Lenders 3 15

Banks, Nationalized Banks, Co-operative Banks 2 2

Para Banking, NBFCs 2 1

Friends, Neighbours 1 4

Relatives 6

Co-operative Society 1

Others 1 1

No Response 5 1

Total 100 100

Table 15C

▪ In 2013, 76% of customers say their preferred source for the next loan they will take will be Ujjivan (89% in 2010). In our view, one cannot read too much into this proportion from both rounds of the study, 2010 and 2013, since there may have been a strong bias in favour of Ujjivan in response to this question.

Preferred S ources for Nex t Loan

Sources for Next Loan % in 2013 % in 2010

Ujjivan 76 89

Relatives 7 2

Financiers, Pawn Brokers, Money Lenders 3 1

Neighbours 3 1

MFIs 2 1

Friends, Colleagues 2 1

Banks, Nationalized Banks, Co-operative Banks 2 1

Self Help Groups (SHG), Sanghas 1 1

Employer 1

Others 1 3

No Response 2

Total 100 100

Table 16


3.11 Healthcare Expenses in Last 1 Year

▪ For some reason, in this round of the survey, there has a been signifi cant drop in the proportion of households that have revealed the expenditure incurred by the household during the last 1 year with respect to health care. By this token, all the data relating to healthcare expenses in this sub-section must be viewed with caution.

▪ In 2013, only 46% of customers contacted during the study have reported their household expenditure on health care in the last one year, as against 81% in 2010

▪ The average amount spent on healthcare by such households in the last 1 year is Rs. 14,444.


Healthcare Expenditure in Last 1 Year - Overall, by Region & State Table 17


Over all

By Regions By State


Raja- sthan

Karn- ataka

Tamil Nadu


khand Orissa

Round 2 N= 1319 265 585 469 176 89 431 154 262 90 52 65

% of households reporting Annual Health Care Expenses

46 14 75 29 13 17 82 56 40 10 17 18

Baseline N= 1319 265 585 469 176 89 431 154 262 90 52 65

% of households reporting Annual Health Care Expenses

81 72 82 84 89 40 88 67 95 79 62 63


Upto Rs.2,000 Rs.2,001-5,000 Rs.5,001 - Rs.10,000 Rs. 10,000+



Amount Spent Towards Healthcare Expenditure in Last 1 Year (in Rs.) - Overall, by Region & State Chart 25A

Overall; By Region, State Figs in %


Overall

5,714

1066

North

10,739

192

South

4,630

481

East

4,587

393

Delhi, UP

11,059

156

Rajasthan

9,353

36

Karnataka

3,722

378

T.Nadu

7,961

103

W. Bengal

2,686

249

Bihar

10,183

71

Jharkhand

11,822

32

Orissa

798

41

Average =

N =

Base

line

11

17

24

48

22

33

23

22

8

13

25

54

8

12

23

57

21

31

25

23

25

44

17

14

11

24

60

17

20

28

35

10

24

64

24

23

32

21

31

22

16

31

100

5 2

Overall

14,444

612

North

24,974

38

South

12,124

438

East

18,973

136

Delhi, UP

27,087

23 #

Rajasthan

21,733

15 #

Karnataka

8,977

352

T.Nadu

25,006

86

W. Bengal

13,951

106

Bihar

51,556

9 #

Jharkhand

54,444

9 #

Orissa

12,292

12 #

Average =

N =

Roun

d 2

22

16

21

41

48

18

18

16

18

17

22

43

28

12

18

42

44

17

17

22

67

22

11

78

11

11

53

20

20

7

15

16

24

45

30

19

15

36

18

10

20

52

49

17

17

17

Loan taken for Healthcare Expenses in Last 1 Year - Overall, by Region & State Chart 25B


Baseline

N=

Overall

1066

612

North

192

38

South

481

438

East

393

136

Delhi, UP

156

23 #

Rajasthan

36

15 #

Karnataka

378

352

T.Nadu

103

86

West Bengal

249

106

Bihar

71

9 #

Jharkhand

32

9 #

Orissa

41

12 #

Round 2

N=


18 147

45

28

8 10

24

8

26

3

73

123

86

26

512

31

56

16

89

58



PPI Score Probability of Being Poor %

3.12 Progress Out of Poverty (PPI) Indicators

▪ In 2013, the PPI is 70 corresponding to a probability of 16.3% of having a per capita income of US$1.50 per day and a probability of 42.9% having a per capita income of US$2 per day, for the gross sample of 1,319 customers contacted during this study. As against this, for 2010, the PPI was 57 with a

probability of 18.7% of having a per capita income of US$1.50 per day and a probability of 69.9% having a per capita income of US$2 per day.

▪ In 2013, 70% of the customers contacted have a PPI of 60+ as against 47% with a similar PPI in 2010.


PPI at US$1.50 per day per capita - Overall, by Region & State Chart 26A



Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

W. Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N =

Base

line

57 62 52 60 66 56 51 54 62 62 61 52

38.7

22.7

34.5

22.7 21.8

38.734.5 34.5

22.7 22.7 22.7

34.5




Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

W. Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N =

Roun

d 2

70 72 68 71 74 68 68 67 72 72 72 64

16.3 16.3

21.8

16.3 16.3

21.8 21.8 21.8

16.3 16.3 16.3

22.7


57 62 52 60 66 56 51 54 62 62 61 52



PPI at US$2.00 per day per capita - Overall, by Region & State Chart 26B



Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

W. Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N =

Base

line

69.955.2

64.0

55.2 50.0 69.964.0

55.2 55.2 55.2




Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

W. Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N =

Roun

d 2

70 72 68 71 74 68 68 67 72 72 72 64

42.9 42.9

50

42.9 42.9

50 50 50

42.9 42.9 42.9

55.2

64.0 64.0


▪ In 2013, only 23% of customers contacted during this survey, have a PPI of less than 60. In 2010, 53% of customers contacted during the Baseline Survey had a PPI of less than 60.


Composition of PPI bands - Overall, by Region & State Chart 26C



Base

line

Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N=

Upto 49 50 to 60 60+


47

18

35

58

25

17

36

17

47

54

17

29

63

27

10

47

22

31

34

16

50

42

18

40

56

17

27

63

19

18

61

12

27

28

17

55

Roun

d 2

Overall

1319

North

265

South

585

East

469

Delhi, UP

176

Rajasthan

89

Karnataka

431

T.Nadu

154

West Bengal

262

Bihar

90

Jharkhand

52

Orissa

65N=

77

13

10

84

12

72

14

14

78

13

9

89

9

75

18

7

72

15

13

72

11

17

79

11

10

87

10

78

12

10

57

28

154 2 3

Implications of Findings 85

Implications of Findings4.1 Several positive changes and

improvements in the lives of customers since 2010

▪ The fi ndings of the study indicate that several positive changes and improvements have impacted the quality of lives of the customers contacted in 2010, which bode well for Ujjivan and for the microfi nance industry.

▪ Having said this, it will be naïve and presumptuous to attribute these changes solely to the one or more relatively small ticket loans given to these customers by Ujjivan.

▪ These changes have, in all likelihood, come about based on a combination of extrinsic factors (such as increase in wages of customers since 2010, wages getting pushed up across the board after introduction and roll out of MNREGA, thrust on fi nancial inclusion and opening of bank branches, Aadhar enrolment eff orts, impact of local economies where Ujjivan’s customers reside, and so on), and intrinsic factors (such as increase in income of respondents, increase in number of earning members in the household and improvement in circumstances of households).

It is diffi cult to determine the specifi c aspects of customers’ lives that have been impacted by Ujjivan and to establish a causal relationship. Despite this, going by the results of this study across various tangible and intangible dimensions, there is evidence of some positive changes that have occurred in the fi nancial standing and quality of lives of Ujjivan’s customers.

Impl

icatio

ns of

Find

ings

4.2 The Phenomenon of Drop Outs

▪ While, ostensibly, there may be a host of sound reasons for customers dropping out, it will be worthwhile for Ujjivan and other MFIs to invest time, money and eff ort in trying to understand the prime, underlying causes for this phenomenon.

▪ If fairly substantial numbers of MFI customers exit after just 1 or 2 loan cycles, it will be a drag on the organizations and their resources as well as nullify the gains eff ected by enlisting a large number of new customers, year on year.

▪ There is also a strong case for MFIs to come together in this respect and share data relating to drop outs.

▪ Lastly, in order to arrest the rate of drop outs, MFIs will need to off er much more than just loans in several variants. They will need to fi nd ways and means to address a host of other needs of its customers.

Some of the other needs of MFI customers that need to be addressed include saving products, assistance in opening bank accounts, life insurance for the main earners of a household with term covers that are realistic in size, health insurance for all family members and especially the main earners of a household, access to good quality health care, improved living conditions and more.


About Ujj ivanUjjivan Financial Services Private Limited was launched in 2005. In an endeavor to contribute to attaining full fi nancial inclusion for India’s poor, Ujjivan chose to complement the existing microfi nance institutions (MFIs) by serving the urban and semi-urban poor populations.

OutreachUjjivan has its head offi ce in Bangalore which is also the regional offi ce for the south. Ujjivan has 3 other regional offi ces - New Delhi (North), Kolkata (East), Pune (West). Ujjivan has 310 local branches across 21 states covering 47 under-banked districts in the country.

Ujjivan’s presence *

Abou

t Ujji

van

East Region*

States/UTs 6

Total Branches 101

Customers 359,392

Loan Amount Disbursed (Rs. Million) 14,607

S outh Region*

States/UTs 5

Total Branches 93

Customers 320,549


Nor th Region*

States/UTs 7

Total Branches 63

Customers 254,936


West Region*

States/UTs 2

Total Branches 44

Customers 170,665


KolkataKolkata

New DelhiNew Delhi

BangaloreBangalore

PunePune

* Data (tables & map) as of March 2013. Note - As of August 2013, Ujjivan has 325 branches present across 21 states serving a customer base of 1.2 million.

About Ujjivan 87

Ujjivan’s missionProvide full range of fi nancial services to the economically active poor to achieve fi nancial inclusion and help alleviate poverty

Ujjivan’s brand message“Build a better life”

Goals1. Provide full range of fi nancial services

required by the customers

2. Build a social enterprise with a double bottom line, which is best in class in all aspects for its stake holders: customer service and protection, innovation, effi ciency, return to investors, workplace engagement, leadership, and governance

3. Operate a viable business to provide investors with adequete return on equity

4. Attract and retain quality talent and provide professionally rewarding career paths

5. Approach poverty reduction in a holistic manner in partnership with Parinaam Foundation (sister NGO) through social welfare programs in education, health care, vocational training, community development, and shelter for disaster relief, to enable customers to lead a ‘better life’

Loan PortfolioUjjivan has a current outstanding portfolio of Rs.11,260 million with a 99.8% repayment rate. Post crisis of 2010 and the new rules and regulations of the Reserve Bank of India (RBI) setting margin & interest rate caps, Ujjivan undertook successfully a multi-pronged program to increase effi ciency and reduce

operating margin. Ujjivan’s portfolio quality was relatively unaff ected during the crisis because of its lack of exposure in Andhra Pradesh.

Dec -06

12,00,000

10,00,000

8,00,000

6,00,000

4,00,000

2,00,000

0Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Customer Growth

No.

of C

usto

mer

s

50,000

45,000

40,000

35,000

30,000

25,000

15,000

20,000

5,000

0

10,000

Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Disbursement GrowthRs

. in

mill

ions

Customer Growth

Ujjivan’s Customers Ujjivan believes its customers are its most important stakeholders. Ujjivan serves over 1.1 million active customers spread across 21 states. Ujjivan’s customers are hard working and industrious with 82% of the total customer base, self-employed. They own small shops and tailoring units while many are employed as domestic workers or piece rate workers in factories.

Disbursement Growth (Cummulative)


Customer occupations1. Shopkeepers2. Grocery vendors3. Tailors4. Flowers/Vegetable vendors5. Manufacturers6. Agarbatti (incense) rolling workers7. Beedi (mini tobacco) workers8. Factory workers9. Housemaids10. Petty traders11. Saree businesses

Customer Occupations

Self - Employed Salaried Others Job / Piece Works Housewife

South North East West

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0

Service Quality - Customer Retention, Care and Protection

In the past few years, Ujjivan has pioneered a comprehensive Service Quality Program which focuses on customer protection & retention. The program meets regulatory requirements and international customer protection standards. In 2012-2013, the program focused on reinforcing customer redressal procedures through continuous trainings and staff -customer-connect programs.

Customer Retention ProgramsHigh customer dropout rates are a serious threat to achieving the goal of fi nancial inclusion. Ujjivan believes that long-term relationships with customers are necessary in order to have a positive impact on them. Ujjivan has employed a number of initiatives to constantly assess customer feedback to improve product effi ciency, service quality and delivery mechanism.

1. Exit interviews for idle and dropout customers are conducted through Customer Care Representatives (CCRs). CCRs are appointed at all branches, which have been operating for more than 2 years. The interviews are conducted to understand why customers are not interested in subscribing for a new loan and subsequent reasons for dropping out. Further, interview feedback is used to revise policies and procedures and thereby help retain existing clients.

2. Retention campaign eff orts include promotional activities such as distribution of brochures to customers in local languages, display of posters in branches and giving recognition awards to branches for their business and social performance. These activities have helped in converting many dropouts

Products and ServicesUjjivan off ers a range of customized products and services to its customers. Along with a core product line, Ujjivan continues to design and expand its portfolio by off ering products which cater to the variety of needs of the customer.

About Ujjivan 89

and idle customers into active borrowers of Ujjivan. The total customers retained through these initiatives were 50,000+ with a loan portfolio of more than Rs 860 million

3. Strengthening of fi eld processes and credit approval systems post crisis has helped Ujjivan improve their customer retention rate from 65% to 72% during FY 2012-13.

Comprehensive code of conductUjjivan revised its Code of Conduct (CoC) which is more comprehensive and easy to interpret by its employees and customers. The revised code integrates guidelines from Reserve Bank of India’s Fair Practice Code, Smart Campaign’s global standards for client protection principles, and MFIN and Sa-Dhan’s joint Code of Conduct. The revised CoC and the customer grievance redressal procedure is translated into 9 local languages and is also displayed in all branches. Also, the stakeholders and the general public can access the information.

Service Quality Awards for employeesUjjivan has initiated Service Champion awards for its employees to recognize and celebrate the exceptional performance of the employees.

Ujjivan’s Awards & Accomplishments1. 2013 - Global accreditation of the Client

Protection Program through the Smart Campaign, which is sponsored by Accion, Credit Suisse, Deutsche Bank, Ford Foundation, OMIN, IFC, SIDBI and USAID. The certifi cation was completed by rating agency M-CRIL.

2. 2012 - Achieved a score of 94.50 (out of 100) in a Responsible Business Index Survey conducted by MFIN. The industry average was 89 and the results were based on data collected from 41 leading MFIs

3. 2011 - Awarded the Best Microfi nance Oraganisation of the year award for the large MFI category by HSBC and ACCESS Development Services.

Ujjivan’s FuturePost the crisis in the Indian microfi nance industry and advent of new regulations from the Reserve Bank of India, Ujjivan was focussed on becoming more effi cient and lowering its operating expenses to viably operate under the new environment. the group lending installment loans along with life insurance businesss, the classical microcredit business, will remain the base business. However, Ujjivan plans to transform itself into a provider of full range of fi nancial services for its customers. The goal would be to provide them comprehensive fi nancial inclusion and enable them to better their lives. This will involve extending customized loans based on end use, savings, remittances, insurance and pensions. These services will be provided either directly by Ujjivan as far as the regulations permit or as distributor of fi nancial services originated by other fi nancial institutions.

BIBLIOGRAPHY▪ (2005). The Maturing of Indian Microfi nance – Findings and Policy Implications from a national

study. EDA Rural Systems Private Limited and Small Industries Development Bank of India (SIDBI). ( www.edarural.com/documents/The-maturing-of-Indian-microfi nance.pdf )

▪ Dr. Desai, R., Bajaj Chaudhary, R., Srinivasan, N., Pestelli, M., Krell, W,M., Gaul,S., MIX Market; Edited by: Srinivasan, G., Agashe, R., Garriott, A. (2011) Microfi nance India – The Social Performance Report 2011. Access Knowledge Series. Access Development Services. ( www.microfi nanceindia.org/social-performance-reports/1018 )

▪ (2009). Banking the Poor. The International Bank for Reconstruction and Development. The World Bank group. ( http://elibrary.worldbank.org/content/book/9780821377543 )

▪ Intellecap, Care, Michael and Susan Dell Foundation, ICICI Bank. (2006). A promise to Pay the Bearer – An Exploration of the Potential for Microfi nance for Urban Microfi nance in India. ( http://intellecap.com/publications/promise-pay-bearer-exploration-potential-urban-microfi nance-india )

▪ IPSOS. (2011). Count Us In – Aspirations for Financial Inclusion. Understanding Demand for Financial Services among Low Income Customers in India. ( http://www.cmef.com/document.doc?id=911 )

▪ (2012). Microfi nance Review-2012: MFIs in a Regulated Environment – A Financial and Social Analysis. M-CRIL. ( http://www.m-cril.com/Backend/ModulesFiles/NewsEvents/M-CRIL-Microfi nance-Review-2012-MFIs-in-a-Regulated-Environment.pdf )

▪ (2012). Microfi nance in India, Way Forward 2012. Microfi nance Advisory Group. ( http://www.ujjivan.com/sites/default/fi les/Microfi nance%20Vision%20Report%20May%202012.pdf )

▪ Coperstake, J., (2013). Research on Microfi nance in India: Combining Impact Assessment with a Broader Perspective (Vol. 41, Supplement 1). Special Issue: The Field of Microfi nance and Development: Showcasing India. Oxford Development Studies.

▪ Bhatia, A., Dr. Deepak, M., Vikas, S. (2013). Microfi nance in India and its Impact on Poverty Alleviation (Vol. 3, Issue 2). Asian Journal of Research in Economics and Management.

Abou

t Ujji

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