Presentation on theme: "ASA International India Microfinance Pvt Ltd"— Presentation transcript:
1 ASA International India Microfinance Pvt Ltd FYDFI MeetingApril 2014
2 About ASAASA 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 ElementsInformationASA InternationalMicrofinance Investment VehicleEstablished2007RegisteredMauritiusOrganizational TypeLimited Liability CompanyOperating LocationAsia & AfricaFund AllocationUSD 125 MillionOperation MethodologyGreenfield & Equity investmentOperation StrategyASA Cost Effective & Sustainable Microfinance Model
5 ASAI India – Shareholding: ASA International HoldingASA International India Microfinance Pvt LimitedProswift Consultancy Pvt Ltd100% Equity75% Equity25% equity
6 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.
7 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.
8 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.
9 Proswift Consultancy Pvt Limited Activities in IndiaTechnical Support to Microfinance Institutions.Mahasemam Trust, MaduraiVindhyanchal Finlease Private Limited, LucknowASA IndiaTrainingJagaran Microfinance Pvt LimitedGrihastha Finance LtdSamhita SocietyMicroinsuranceBajaj Life Insurance
10 ASA India-Operational Areas ASA InternationalASA India-Operational AreasNumber of BranchesApr’13”StateWest Bengal91Fifteen District-DarjeelingCooch BeharJalpaiguriSouth DinajpurMaldaMurshidabadBirbhumNadiaBurdwanNorth 24 PgsSouth 24 PgsHowrahEast MidnaporeHooghlyKolkataAssam4One District – KamrupTripuraOne District – AgartalaBihar2One District – KishanganjUP1One District – Varanasi101` `10
11 Operational Snapshot (ASAI India) Sl. NoParticularsAs on 31st march 20141States Covered52Districts covered193Branches1024Borrowers84313No of loan officers2506No of total staff4157Portfolio Rs in Crores (Incl interest)53.258PAR>30 days (%)1.31%9Repayment rate (%)99.66
18 ASA’s Innovation in Microcredit Flexibility of group formation/No bindings on group guaranteeSimplicity and transparent systemLow-costs managementStandardizationDelegation of authority in the field levelInnovative staff recruitment and on-the-job (each one-teach one) trainingSimple and shorter loan processing, less waiting time for the borrowerWritten manual thereby uniformity and greater control.Strong monitoring and supervisionStandard and low cost structure on furniture, fixture and overall management costsDonors 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.
19 ASA’s Innovation in Microcredit ASA’s Operating Model distinguishes from many other microfinance institutions through its standardized and efficient policies and proceduresExclusively working capital loans for income generating activitiesIndividual 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 loanLending groups are formed in order to achieve and maintain distribution efficiencies in order to maintain weekly client contact and collect installmentsHighly standardized lending and control modelCentrally controlled policies and procedures combined with decentralized credit decisionRigorous focus on cost control and achieving ongoing cost efficienciesFlexible loan products suited to client’s capacity to repayGraduation principle – good credit record provides access to bigger loansOngoing focus on improving products and loan protection through various insurance schemesRapidly scalable, primarily dependent on the ability to train and maintain experienced staffThrough 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
20 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 BankBest International Technical Service Provider for UNDP Micro Start Program in the Philippines and NigeriaPlaced in all the six categories with exceptional best result: MIX Report 2005Empowerment of Women Award
21 ASA International - Excellent Social Performance Track Record Social ratingFive star rating by GIIRS (Global Impact Investing Rating System) for second year in a rowGIIRS 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 capitalGIIRS now has the largest database of social and environmental performance data on private companiesOut of 219 companies rated ASAI scored highest rating in three benchmark groups (company vs market, market & sector, and market & size)Social responsible investmentASAI 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 classesPRI Initiative is the leading global network for investors to publicly demonstrate commitment to responsible investmentSocial policies and practicesASAI 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 industryASAI desires to be fully transparent in the pricing, terms, andconditions of all its financial products. It also aims offer the mostcompetitive rates in each of the markets it is active inASAI promotes the establishment and use of credit bureausPublic reportingASAI publishes data on mix market2121
22 Impact StudyASA India – Impact through MicrofinanceClient Basanti Sarkar Activity: Papad ManufacturingASA 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.”
23 Impact Study Client Mala Paul Activity: Clay modeling ASA Group: NandiniFirst Loan : Rs. 8, Current Loan: Rs. 15,000“ASA support in addition to the financial security has provided us and our art recognition.”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.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 4th 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.