Margadarsi targets ₹12,000 crore turnover this year

Margadarsi Chit Fund has targeted a turnover of ₹12,000 crore in the current financial year, up from

Margadarsi Chit Fund has targeted a turnover of ₹12,000 crore in the current financial year, up from ₹9,712 crore in 2021-22.

The fund’s managing director Sailaja Kiron told a media conference on the occasion of the organisation celebrating its 60th anniversary on Friday that it has a robust recovery rate of 99%, mainly due to its strong operational procedures.

A stringent documentation of subscribers details is very crucial for recoveries. “We ensured strict sureties and securitisation. As a result, the fund is best in recovery and ensured that its bad debts are as low as 0.1% to 0.2% per annum. The fund took more time to enrol subscribers,” she said adding that the levy of GST on chit fund industry is painful.

The disbursals to subscribers every month were in the range of ₹600 crore and ₹650 crore. The disbursement is as fast as three days for chit winners.

On the diversification plans of the fund, Ms. Kiron sounded positive but did not elaborate. “Wait and see,” she remarked.

Tracing the sixty year journey of Margadarsi Chit Fund since its inception on October 1, 1962, Ms. Kiron attributed the success story to the vision of founder chairman Ramoji Rao. The fund functioned with integrity and maintained financial discipline and ethical code of conduct. It operated with a network of 108 branches in Telangana, Andhra Pradesh, Karnataka and Tamil Nadu. It has 60 lakh subscribers and 4,300 employees. There are 6,217 chit groups.