Sept 10, 2007

Recently we had a conversation with Biswa micro finance (Sambalpur) leadership. The questions and answers regarding the operation and progress are reproduced below with minor edits. Moreover, Darshan is planning a visit to Sambalpur in 3rd week of December, 2007 for face to face discussions and site visit.  (We encourage other members and supporters of Biswa micro finance project to do site visits and/or ask Biswa helpful questions, and report back.)

 

Specific questions:

1. What is the current success and progress report of BISWA NBFC?
2. What is the interest rate structure for the various clients now?  Is there any change in current interest rates charged by Biswa NBFC?
3. What social investment and grassroots efforts are happening with MicroFi's direct investment?
4. Please include any financial documents customary since some members here would like those disclosures.
5. Do you have a website for Biswa MicroFi for members and potential supporters to look up?

 

Answers from our conversations:

1. As you know, a Delhi based NBFC  named Credible Securities Finance & Pvt. Ltd. has been acquired by us since 1.4.2006 and we started own office at  Sambalpur from 1.7.2006 with its operation from 16.11.2006. We  have filed application with Reserve Bank of India(RBI) and  Registrar of Companies(ROC) for change of the name of the NBFC to  BISWA MICROFINANCE SERVICES Pvt.Ltd. and the application is likely  to be approved by the RBI and ROC. The NBFC has an authorised share  capital of Rs.4 Crores out of which Rs.1.5 Crores is the paid up  capital. Out of the paid up capital of Rs.1.5 Crores, BISWA has a  share capital of Rs.76.5(51%) Lakh and Bellweather Micro Finance  Trust, Netherland has a share capital of Rs.73.5 Lakh(49%). Out of  the money of Rs.76.5 Lakh put up by BISWA, the NRI loan at the  rate of 5% interest is 51 lakh. Besides this equity capital , the  NBFC has borrowed Rs.2 Crores as convertible debts from  Bellweather Micro Finance Trust @7% interest rate. The NBFC hss so  far disbursed Rs.5 Crores and have a present outstanding of Rs.2.8  Crores .The NBFC has incurred a loss of Rs.8 lakh during the first  year. The NBFC is in the process of getting more loan frunds from  different banks to increase its operation as well as make a profit  by 31st March 2007.

 

2.The NBFC is lending to only three types of clients: To BISWA  promoted Federations to lend to the members self help groups of  the federations, to BISWA to lend to the groups those who have not  been federated, and to other NGO' having good track record in  doing micro finance programme. All this three types of lending  carry an equal lending rate of 13% per annum which has been  revised to present rate of 15%. However no fresh loan has been  sanctioned by the NBFC after the rate has been revised from 13% to  15%.  Please note that the varied rates earlier proposed have now been made into this single rate for better management and follow up as well as to reduce the cost of operation.

 

3.The Social and Micro Enterprise developments are being  undertaken by BISWA at the grass root level with the Micro  Finance Loan. This is in the shape of establishment of micro  enterprise for creation of self employment opportunities. This  year we are targeting for creation of 1,50,000 employment  opportunity across the state. Besides doing this micro enterprise  development , in collaboration with BKMM eye hospital, we are  doing 10-15 eye camps in 13 districts of the state, providing eye  operation facility and also eye care facility. Besides this , we  are able to organise regular health camps across the state where  there is also a peoples contribution .We are also in the process  of distribution of Medicated Mosquito Nets in the districts of  Kandhamal, Sambalpur, Bargarh, Bolangir and Keonjhar which is  linked to Micro Finance Programme for Malaria eradication. Here we  are not only providing Mosquito Nets, but also making regular  awareness creation. We have so far made 57850 Women literate who  were illiterate before they join in the self help group in their locality. We have also promoted 206 federations which in the  process of paving the way to Women owned, Women controlled and  Women managedself sustainable institutions for development of the  own locality where federations have been promoted. Besides this we  are also intervening in Beggars Rehabilitation for whom there is  no scheme in the Government. With the success in rehabilitating the  leprosy beggars of Hatibari Health Home, the Government has  requested us to rehabilitate the beggars at Puri in the front of  Lord Jagannath Temple, in front of Lokanath Temple, on the sides  of the sea beach, near Swargdwar and at the sites of Konark  Temple. We have already made a survey and in the process of  mobilisation of resources for rehabilitation of these beggars  through this Micro Finance Programme. These are some of the  examples of social development taking place.  

 

4. I have attached herewith the progress report of BISWA as of 31st  July 2007. The financials of BISWA NBFC has already been provided  in Point No.1 above. As the BISWA is in the process of graduation  from an NGO to a full fledged Micro Finance Bank , the process of  which has already been started by establishing the NBFC, the  gradual process will be a gradual promotion of Federations which  are registered as MBT's , which are Women Controlled, Women  managed and Women owned organisations and linked to the NBFC;  till that point, the progress report of BISWA Micro Finance  programme along with that of the NBFC may please be reviewed.  

 

5. At Present BISWA Micro Finance does not have a Website. However ,  I would request you to kindly visit the website of BISWA to have  an watch over the Micro Finance Porgramme.  www.biswa.org

 

 

We have also obtained the current operational report on the BISWA NBFC’s micro loan activity as follows:

Name of district

Loan Details during the month

Outstanding Up to   Previous Month

 

Principal Repayment

Balance as on 31.07.2007

Achieved    

Total Demand as on 31.07.2007

Collection

Recovery %

Angul

                 315,069

 

           44,208

              42,783

                96.78

            272,286

Bargarh

            49,719,706

       288,160

       8,742,377

          8,600,726

                98.38

        41,407,140

Bolangir

            14,135,335

 

          351,407

            323,698

                92.11

        13,811,637

Boudh

            11,097,766

 

       1,126,761

            631,212

                56.02

        10,466,554

Deogarh

              7,125,233

       225,856

          463,811

            453,401

                97.76

          6,897,688

Jharsuguda

            13,519,053

 

          302,503

            292,396

                96.66

        13,226,657

Kalahandi

              8,657,865

       723,500

          253,661

            253,661

              100.00

          9,127,704

Koraput

              3,508,284

 

           48,493

              47,100

                97.13

          3,461,184

Malkangiri

              4,922,768

       107,800

          209,553

            209,553

              100.00

          4,821,015

Nawarangpur

              4,004,694

 

          203,751

            203,577

                99.91

          3,801,117

Nuapada

              4,627,693

 

          179,000

            178,509

                99.73

          4,449,184

Rayagada

              2,847,569

 

          177,941

            177,941

              100.00

          2,669,628

Sambalpur

            74,143,165

    2,808,389

     30,544,662

          8,303,089

                27.18

        68,648,465

Sonepur

              9,368,144

 

       1,532,871

            428,498

                27.95

          8,939,646

Sundargarh

            13,158,708

 

          518,000

            517,991

              100.00

        12,640,717

Balasore

                 232,075

 

           46,500

              46,383

                99.75

            185,692

Bhadrak

                    27,569

 

             4,806

              10,487

              100.00

              17,082

Cuttack

              4,129,293

 

           32,675

              32,675

              100.00

          4,096,618

Dhenkanal

              1,989,498

 

          188,292

            182,825

                97.10

          1,806,673

Gajapati

                 289,000

 

           31,000

              31,000

              100.00

            258,000

Ganjam

              1,541,503

 

          139,229

            139,229

              100.00

          1,402,274

Jajpur

              1,656,403

 

       1,125,473

          1,125,473

              100.00

            530,930

Jagatsingpur

              9,929,114

 

          322,760

            319,318

                98.93

          9,609,796

Kandhamal

              2,530,608

 

          154,959

            151,959

                98.06

          2,378,649

Keonjhar

              4,165,915

       123,000

          129,664

            129,664

              100.00

          4,159,251

Kendrapada

              2,847,135

 

          670,000

                     -  

                     -  

          2,847,135

Khurda

            10,504,251

       958,363

          552,039

            541,036

                98.01

        10,921,578

Mayurbhanj

              2,900,753

 

          171,308

            167,392

                97.71

          2,733,361

Nayagarh

              1,997,067

 

          342,727

            342,727

              100.00

          1,654,340

Puri

            15,610,407

       908,050

          675,363

            675,363

              100.00

        15,843,094

J. Champa

              1,285,400

 

          125,000

            123,456

                98.76

          1,161,944

Mahasamund

              1,182,966

 

          210,417

            208,710

                99.19

            974,256

Raipur

                 328,130

 

           17,644

              14,283

                80.95

            313,847

Durg

              1,439,612

 

          213,615

                     -  

                     -  

          1,439,612

Orissa NGO

            71,979,459

 

       6,150,450

          6,059,989

                98.53

        65,919,470

Chhattisgarh NGO

              5,945,559

 

          150,224

            147,536

                98.21

                     -  

WB NGO

              7,546,225

 

           28,250

              27,568

                97.59

                     -  

Jharkhand

              1,250,000

 

          112,500

                     -  

                     -  

          1,250,000

 

         363,662,769

    6,143,118

     56,293,894

        31,141,208

                55.32

      334,144,224

ICICI

      494,136,269

 

     34,694,914

        34,694,914

              100.00

      459,441,355

 

      857,799,038

 

     90,988,808

        65,836,122

                72.36

      793,585,579

Less Hard Core

 

 

    (17,999,965)

 

 

 

 

 

 

     72,988,843

        65,836,122

                90.20

 

 

 

 BISWA MICRO FINANCE PROJECT

 

PROGRESS PERFORMANCE AT THE END OF JULY-2007

 

 

1994-02

As on

As on

As on

 As on 

 As on 

 As on 

 For

 As on 

A.

GEOGRAPHICAL COVERAGE

 

Mar-03

 Mar-04

Mar-05

Mar-06

Mar-07

Jun-07

Jul-07

Jul-07

1

No. of State

1

1

1

1

9

9

9

0

9

2

No. of Districts

 

 

 

 

61

61

61

0

61

B.

S.H.G ANALYSIS

 

 

 

 

 

 

 

 

 

1

Total SHG Formation

558

982

2,265

4,699

12,437

22,768

23,418

15

23,433

2

Average SHG per SHG Promoter

56

49

67

50

52

60

62

1

62

3

Total S.H federation formed

 

 

3

12

67

164

191

0

191

C.

GRADATION OF SHGs

 

 

 

 

 

 

 

 

 

1

Grade-A

 

238

244

1,467

5,135

11,241

12,782

308

13,090

2

Grade-B

 

157

482

1,133

3,084

6,531

7,549

211

7,760

3

Grade-C

 

198

118

136

947

1,280

550

163

713

 

Total

 

593

744

2,736

9,166

19,052

20,881

682

21,563

D.

MEMBERS STATUS

 

 

 

 

 

 

 

 

 

1

Total Members

8,055

14,338

33,522

71,845

186,478

346,125

376,249

227

376,476

2

Average member per SHG/year

14

15

15

15

15

15

16

16

16

3

Average members per SHG Promoter

805

717

798

764

774

961

995

1

996

E.

SAVING ANALYSIS

 

 

 

 

 

 

 

 

 

1

Savings mobilized with the Group

2,154,996

3,563,644

8,374,605

15,864,140

38,984,200

95,456,892

109,476,030

        1,565,847

111,041,877

2

Savings with the Institution

 

 

 

3,675,440

17,340,651

40,280,507

45,162,309

        1,132,541

46,294,850

3

Total Saving Mobilized

 

 

 

19,539,580

19,539,580

135,737,399

154,638,339

        2,698,388

157,336,727

4

Saving rate per member/year

268

249

333

272

105

392

411

                   7

418

5

Average Saving per SHG/year

3,862

3,830

4,930

4,158

1,571

5,957

6,603

111

6714

6

JBY Insurance Coverage

0

0

0

3,780

14,598

60,196

73,222

2145

75,367

7

ICICI LOMBARD-Health Insurance

0

0

0

 

44,852

153,223

153,534

0

            153,534

F

LOAN ANALYSIS

 

 

 

 

 

 

 

 

 

1

No of Loan Disbursement

114

372

875

2,537

9,826

19,994

20,739

313

21,052

2

Amount of Loan Disbursed

552,775

9,606,913

23,610,052

86,027,150

648,007,642

1,751,772,310

1,814,327,989

        6,143,118

    1,820,471,107

3

Loan Size

4,849

25,825

26,983

33,909

65,948

87,615

87,663

            19,627

              86,475

4

Lonee Members

1,318

4,598

10,895

31,612

123,027

253,737

262,801

              1,913

264,714

5

No of Credit Officer

6

16

25

42

104

294

294

0

294

6

No of loan per Credit Officer

19

23

35

60

77

68

71

1

72

7

No. of Loanee per loan officer

220

297

436

753

961

863

894

                   7

              907.00

8

Portfolio per credit officer

75,697

311,595

452,201

781,410

4,357,196

3,117,095

3,129,729

 

 

 

 

BISWA MICRO FINANCE PROJECT

PROGRESS PERFORMANCE AT THE END OF June 2007

 

 

1994-02

As on

As on

As on

As on

As on

As on

 

 

 

Mar-03

 March 04

Mar-05

Mar-06

Mar-07

Jul-07

G.

LOAN OUTSTANDING

 

 

 

 

 

 

 

1

No. of loan outstanding

114

372

742

1,658

8,044

         15,170

          15,838

2

Amount Outstanding

484,151

4,985,512

11,305,028

50,451,116

557,721,112

  942,194,633

793,585,579

3

Avarage Outstanding

3,984

13,402

15,235

30,429

69,334

         62,109

          50,106

4

No of active members

1,318

4,598

9,111

22,362

101,721

       192,810

         193,463

5

Portfolio at Risk

0.50%

1%

1%

1%

0.30%

0.30%

 

H

REPAYMENT STATUS

 

 

 

 

 

 

 

1

Repayment from Borrowers

98.00%

99%

99%

99%

99.80%

99%

90%

LIVERAGE STATUS

 

 

 

 

 

 

Sl No

Name of the FFI/ Bank

Leverage Received

Amount Refund up to June-2007

Outstanding as on June-2007

 

 

 

 

 

 

 

 

1

State Bank Of India

            2,615,600.00

          2,615,600.00

                    -  

 

 

 

 

2

Bolangir Anchalik Gramya Bank

            3,868,100.00

          3,868,100.00

                    -  

 

 

 

 

3

SDCC,Sohela

                13,800.00

              13,800.00

                    -  

 

 

 

 

4

UBI Kulundi

               112,000.00

            112,000.00

                    -  

 

 

 

 

5

CARE-India-(Orissa)

           17,500,000.00

        17,500,000.00

                    -  

 

 

 

 

6

Friends of WWB.India

            9,000,000.00

          8,500,000.00

         500,000.00

 

 

 

 

7

Rastriya Mahila Kosh

           10,400,000.00

          6,300,000.00

       4,100,000.00

 

 

 

 

8

ABN AMRO Bank

           70,000,000.00

        30,200,000.00

     39,800,000.00

 

 

 

 

9

SIDBI

            5,000,000.00

          2,791,000.00

       2,209,000.00

 

 

 

 

10

Dr.Debiprasad Mishra

               500,000.00

            500,000.00

                    -  

 

 

 

 

11

NMDFC

            2,025,000.00

          1,519,750.00

         505,250.00

 

 

 

 

12

Swyongshree Cuttack

            2,400,000.00

          2,400,000.00

                    -  

 

 

 

 

13

The Bridge Foundation

               350,000.00

            350,000.00

                    -  

 

 

 

 

14

HDFC Bank Ltd

           52,000,000.00

        18,573,922.00

     33,426,078.00

 

 

 

 

15

UTI Bank Ltd

           80,000,000.00

        30,066,283.00

     49,933,717.00

 

 

 

 

16

Bank of India

           50,000,000.00

            571,473.00

     49,428,527.00

 

 

 

 

17

CITI Bank

           22,500,000.00

          5,625,000.00

     16,875,000.00

 

 

 

 

18

ICICI Bank Ltd

       1,084,508,456.00

       556,077,272.71

    528,431,183.29

 

 

 

 

19

Credible Securities & Fin.Pvt

           14,300,000.00

        12,300,000.00

       2,000,000.00

 

 

 

 

 

Total

    1,427,092,956.00

    699,884,200.71

 727,208,755.29