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 NBFCs 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