45 | Annual Report | 2024-2025 This marks the third consecutive year since the department’s inception in FY 2023 that Arohan has surpassed INR 100 Cr in annual recoveries—an achievement that not only highlights operational excellence but also reinforces Arohan’s ongoing commitment to financial inclusion, customer rehabilitation, and sustainable credit growth. Customer Engagement and Recovery Strategies: A Balanced Approach to Support and Resolution To achieve meaningful recovery outcomes while supporting customers in financial stress, Arohan implemented a set of broad, customer-centric strategies in FY 2025. These initiatives are designed not only to drive recoveries but also to rebuild customer trust and creditworthiness through proactive engagement, education, and structured resolution mechanisms. Field Strategy: Personalised Outreach and Education • Customer Household Visits and Promise to Pay (PTP): Arohan’s team of Receivable Executives (REs) plays a crucial role in directly engaging with customers through household visits. Their efforts focus on establishing rapport, educating customers about the importance of maintaining a strong credit history, and encouraging timely repayments. When immediate payment is not feasible, REs work with customers to secure Promise to Pay (PTP) commitments, ensuring clarity and mutual accountability. • Data-Driven Engagement with Recovery Scorecards: To prioritise and personalise outreach, Arohan has developed customerlevel Recovery Scorecards. These are informed by each customer’s collection history, payment patterns, current delinquency status, and performance metrics—both with Arohan (on-us) and externally (off-us). These insights enable targeted, effective follow-ups tailored to individual circumstances. Legal Strategy: Structured Escalation with Fair Warning • Soft Reminders and Legal Notices: As part of a phased approach, Soft Reminder Letters are issued to encourage repayment and serve as an early intervention tool. If customers remain unresponsive, formal Legal Notices are issued through empaneled Advocates, emphasizing the seriousness of the obligation while still offering opportunities for resolution. • Alternative Dispute Resolution via Lok Adalats: Arohan has also actively leveraged settlement opportunities through Special Lok Adalats and National Lok Adalats, providing customers with a fair and legal platform to settle dues. These initiatives not only expedite resolution but also offer customers a dignified path to restore their credit standing. Through these legal interventions, Arohan recovered over INR 28 Cr in FY 2025—1.4x higher than the previous fiscal year—demonstrating the effectiveness of a balanced strategy that emphasizes both firmness and fairness. Other Key Recovery Initiatives: • Sandhi Settlement Scheme: To maximize recoveries from written-off accounts, Arohan launched the Sandhi Scheme in February 2021, offering such customers a one-time settlement (OTS) opportunity on the basis of a pre-defined settlement matrix. Recovery through Sandhi stood at INR 60 Cr as on March 31, 2025 compared to INR 34.81 Cr as on March 31, 2024, INR 6 Cr as on March 31, 2023, and INR 1.30 Cr as on March 31, 2022. Recovery Amount (in Cr.) 12.00 45.21 112.79 140.34 124.42 FY21 FY22 FY23 FY24 FY25 0.40 0.90 4.70 Recovery through Sandhi Scheme (in Cr.) 28.81 25.54 FY’21 FY’22 FY’23 FY’24 FY’25
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