Presentation on theme: "FYDFI Meeting April 2014. About ASA ASA India has been incorporated under the Indian Companies Act and registered with RBI as NBFC (applied for MFI-NBFC."— Presentation transcript:
FYDFI Meeting April 2014
About ASA ASA India has been incorporated under the Indian Companies Act and registered with RBI as NBFC (applied for MFI-NBFC ). The company is part of ASA International Group that has operations besides India in Philippines, Pakistan, Sri Lanka, Ghana, Nigeria, Cambodia, Kenya, Uganda, Tanzania, Burma. Proposed greenfield operations: Sierra Leon, Rwanda, Malawi, Zambia and Cameroon;
3 About ASA International ElementsInformation ASA International Microfinance Investment Vehicle Established2007 RegisteredMauritius Organizational Type Limited Liability Company Operating Location Asia & Africa Fund AllocationUSD 125 Million Operation Methodology Greenfield & Equity investment Operation Strategy ASA Cost Effective & Sustainable Microfinance Model
ASA International - Global Presence
ASAI India – Shareholding: ASA International Holding ASA International India Microfinance Pvt Limited Proswift Consultancy Pvt Ltd 100% Equity 75% Equity 25% equity
ASAI India - Methodology ASAI India follows the ASA Bangladesh’s “Low cost Sustainable Model” popularly known as ASA Model. ASA’s cost effective model has proven itself in different countries in Asia and Africa. Under this model, ASA branches have proved its capacity to reach a break even point within a year. This model is simple as well as cost-effective. This cost effective method covering Branch Office to the Central Office ensures ASA’s dedication towards its mission for reducing poverty.
ASAI India - Management The Board of Directors of ASAI India have sizable experience in the field of Banking, Microfinance and the Social Sector with global level exposure. ASAI India has a professional set-up with experienced personnel at all levels of management. The strong and professional local Management is also supported by ASA Bangladesh and ASA Netherlands through technical, Systems/IT, Legal, Risk Management, training and administrative inputs.
About Proswift Consultancy Pvt Ltd Company registered under the Indian Companies Act. An Indian Operating Company formed to provide training, consultancy in the field of Microfinance. Also involved in Financial literacy, marketing of micro insurance products. Plans to provide services related to Health, education, training targeting the bottom of income pyramid.
Proswift Consultancy Pvt Limited Activities in India Technical Support to Microfinance Institutions. Mahasemam Trust, Madurai Vindhyanchal Finlease Private Limited, Lucknow ASA India Training Jagaran Microfinance Pvt Limited Grihastha Finance Ltd Samhita Society ASA India Microinsurance Bajaj Life Insurance
101`` ASA International ASA India-Operational Areas Number of Branches Apr’13” State West Bengal 91 Fifteen District- 1)Darjeeling 2)Cooch Behar 3)Jalpaiguri 4)South Dinajpur 5)Malda 6)Murshidabad 7)Birbhum 8)Nadia 9)Burdwan 10)North 24 Pgs 11)South 24 Pgs 12)Howrah 13)East Midnapore 14)Hooghly 15)Kolkata Assam4One District – Kamrup Tripura4One District – Agartala Bihar2One District – Kishanganj UP1One District – Varanasi
Operational Snapshot (ASAI India) Sl. NoParticularsAs on 31 st march States Covered 5 2Districts covered 19 3Branches Borrowers No of loan officers 250 6No of total staff 415 7Portfolio Rs in Crores (Incl interest) PAR>30 days (%) 1.31% 9Repayment rate (%) 99.66
ASAI India Projections - Balance Sheet
ASAI India Projections – Profit & Loss
ASA’s Innovation in Microcredit Flexibility of group formation/No bindings on group guarantee Simplicity and transparent system Low-costs management Standardization Delegation of authority in the field level Innovative staff recruitment and on-the-job (each one-teach one) training Simple and shorter loan processing, less waiting time for the borrower Written manual thereby uniformity and greater control. Strong monitoring and supervision Standard and low cost structure on furniture, fixture and overall management costs Donors free sustainable growth, high ROA and ROE. Strong IT and Systems-AMMS software covering operational, financial, MIS and HR. Developed in-house by ASA Bangladesh and used globally across all countries.
ASA’s Innovation in Microcredit ASA’s Operating Model distinguishes from many other microfinance institutions through its standardized and efficient policies and procedures Exclusively working capital loans for income generating activities Individual client selection, no joint liability, which has the advantage that (i) each prospective client’s business is more carefully evaluated, (ii) good clients are not penalized by non- performing clients, and (iii) clients are not dependent on group formation prior to first loan Lending groups are formed in order to achieve and maintain distribution efficiencies in order to maintain weekly client contact and collect installments Highly standardized lending and control model Centrally controlled policies and procedures combined with decentralized credit decision Rigorous focus on cost control and achieving ongoing cost efficiencies Flexible loan products suited to client’s capacity to repay Graduation principle – good credit record provides access to bigger loans Ongoing focus on improving products and loan protection through various insurance schemes Rapidly scalable, primarily dependent on the ability to train and maintain experienced staff Through the application of ASA’s Operating Model, ASA’s and ASA International’s (i) cost/income ratio is comparatively low and return on outstanding loan portfolio is high despite never charging higher interest rates than any of its peers/competitors, and (ii) portfolio quality remains high
International Recognition and Awards “ Banking at the Bottom of the Pyramid” Award by Financial Times and International Finance Corporation (IFC) UK (2008) Selected as the best MFI worldwide by Forbes (Dec 2007) “The Ford Motor Model of Microfinance” Asian Development Bank Best International Technical Service Provider for UNDP Micro Start Program in the Philippines and Nigeria Placed in all the six categories with exceptional best result: MIX Report 2005 Empowerment of Women Award
ASA International - Excellent Social Performance Track Record 21 ASA International Social rating Five star rating by GIIRS (Global Impact Investing Rating System) for second year in a row GIIRS is a ratings and analytics platform for impact investing that provides comparable and verified social and environmental performance data on high impact companies seeking investment capital GIIRS now has the largest database of social and environmental performance data on private companies Out of 219 companies rated ASAI scored highest rating in three benchmark groups (company vs market, market & sector, and market & size) Social responsible investment ASAI signing up as signatory to the United Nations-supported Principles for Responsible Investment (PRI) Initiative. The Principles are voluntary and aspirational offering a menu of possible actions for incorporating ESG issues into investment practices across asset classes PRI Initiative is the leading global network for investors to publicly demonstrate commitment to responsible investment Social policies and practices ASAI adopted the SMART principles. These Client Protection Principles are the minimum standards that clients should expect to receive when doing business with a microfinance institution based on consensus in the microfinance industry ASAI desires to be fully transparent in the pricing, terms, and conditions of all its financial products. It also aims offer the most competitive rates in each of the markets it is active in ASAI promotes the establishment and use of credit bureaus Public reporting ASAI publishes data on mix market
Impact Study ASA India – Impact through Microfinance Client Basanti Sarkar Activity: Papad Manufacturing ASA Group: Deep First Loan Rs.10,000/- Current Loan Rs.12,000/- Basanti’s success story goes back to 4 years ago when her husband suffered a huge loss in his Saree business. The family was pushed towards scarcity, getting out of such situation became a major challenge in absence of finance. She approached ASA India and narrated her situation and sought support. With funding from ASA India she decided to go into Papad making for her livelihood activity. The activity not only supported her family, provide good education to her children, she could repay the loan as also expand her business. She continued to avail loan from ASA after repayment of the previous cycle. Presently her annual turnover exceeds Rs 4 lakhs with annual profits of around Rs 1 lakh. What started as a small self-employed unit now provides employment to 8 to 10 families in the locality. “I used to spend sleepless nights worrying about my family and children when my husband’s business failed. ASA has given me a new of life and now I am able to provide my family a good living standard.”
Impact Study Client Mala Paul Activity: Clay modeling ASA Group: Nandini First Loan : Rs. 8,000 Current Loan: Rs. 15,000 “ASA support in addition to the financial security has provided us and our art recognition.” She is an empowered woman from Kumartuli area of North Kolkata who now successfully running the business venture and assisting her husband to shoulder the responsibility of her family. Her 13 year old daughter could be educated at one of the reputed schools at Kolkata. Apart from the income her talent has been recognized at state and national level through: Various awards, recognitions, cash rewards. A documentary on her talents and achievements, the documentary being selected as 4 th best out of 350 documentary. A contract from Howrah Municipal Corporation for Rs. 1,40,000/- to make clay model depicting scenes from Hindu religious epic Ramayana to be displayed at Bellilious Park. Life has been a struggle for Mala Paul and her husband Bhanu Rudra Paul before they approached ASA India. The meager Rs income was inadequate to make ends meet. Mala Paul approached ASA India, with ASA India’s support activity expanded; orders started flowing-in thereby the turnover and income. She kept repaying the loan in a disciplined manner, again approaching for next cycle of loan. Her business now has a annual turnover of over Rs.4 lakhs with her income more than Rs. 1 Lakh.