A PRESENTATION BY: DAMINI GANDHAM POLASH MUKERJEE BINDU UPADHYAY.
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Transcript of A PRESENTATION BY: DAMINI GANDHAM POLASH MUKERJEE BINDU UPADHYAY.
A PRESENTATION BY:
•DAMINI GANDHAM
•POLASH MUKERJEE
•BINDU UPADHYAY
To reduce economic and social poverty significantly by creating employment through providing cost effective , sustainable financial and other development services.
To be a world-class international microfinance institution serving 8 million clients by 2014
ObjectiveTo work with those who are socially disadvantaged and economically exploited, especially women. Bandhan works for their social upliftment and emancipation by providing micro financing services.
C Cost effective and simple
R Respect for all
E Exemplary governance
A Accountability
T Transparency and integrity
E Effective team work and commitment
Need for intervention (or in our words, JUSTIFICATION)
•Poverty in West Bengal is wide spread (Estimated by the NGOs to be about 50%...!
•Poor need both, savings as well as credit services due to lack of financial asset base.
•Existing banking and non-banking sources are incapable of meeting the credit needs.
•Present system is Collateral based.
•Reliance on grant funds to support MF operations was difficult, loans were a better option.
Need for MFI’s
Credit has to be created for demand condition
Has worked as a mechanism to correct market imbalance
Has worked as a empowerment tool Cheaper credit has allowed people to
innovate and take risks
Threats
Winning confidence Dominance of traditional money-
lenders Overcoming people’s expectations
Weakness
Model is complex, not easily replicable.
Microfinance targets only HCP, others left out.
Opportunities
Plenty of scope to expand Development activities into other states
Move from HCP to poor.
Strengths
High level of international recognition Easy corpus formation due to credibility Network spread in 18 states The model – Sustainability The progress speaks for itself Bottom up approach to development Expansion of choice availability to IB’s
Geography
Bandhan is active in 18 states and union territories where it operates 1553 branches
History
BANDHAN AT A GLANCE
BANDHAN I B
Loans/Training/Other Benefits
Installments
DONORS
Money
Awards
Money/ Value
TRANSACTION MODEL
MARKET
Goods/ Services Return
s
Villagers
Employment Services
Methodology• Group formation individual lending
approach.• A group of 10-20 members is formed.• Clients have to attend the meetings
for 2 successive weeks. • After 2 weeks they are entitled to
receive loans. • The loans are disbursed individually
and directly to members.
Organizational structure
Intended Beneficiaries
Landless and asset less women. Monthly income less than Rs 3500 in
rural areas, less than Rs 5000 in small towns and less than Rs 7000 in big cities and metros.
Those who do not own more than 1/2 an acre of land or capital equivalent .
Why women..?
Women possess skill sets which can be used to generate livelihood.
They are better financial managers.
Direct Benefits
Dual objective: Poverty alleviation and women empowerment.
Increasing family income through women helps increase status of women in the family and society.
Confidence and decision making power increases.
Indirect Benefits
Aids formation of Small scale / cottage industries such as : Zari work Embroidery Animal Husbandry Crafts work Vegetable vending etc.
These industries create employment for the whole population.
Finances
Income Source Percentage
Service Charges/ Interest received
82.24%
Grant 11.02%
Admission fee 4.54%
Bank Interests 1.12%
Miscellaneous 1.09%
Expenditure Percentage
Establishment and Administration 44.10%
Financial Costs 28.44%
Personnel costs 27.46%
Donors
Loan products
Micro loans for health, enterprises and health Interest: Reducing balance method Loans are sanctioned to enable members to
pursue income generating activities Borrowers and their spouse are covered
under insurance They are not fined for late payments( no
penalty) Weekly / fortnightly/ monthly instalments
based on choice Loan granted without a collateral
Pension Services Remittance services: International
money transfer services brought closer to the homes of those whose families are abroad. Tie up with Western Union in August 2010
These are the programs operational through microfinance
Targeting the Hard Core Poor Grant based program Objective- Uplift them
to mainstream finance Formation of village
committees that act as guardians after the completion of the program
They have received grants from various associations ( International)
Bandhan Education Program
Non formal primary education program
Special focus on girl child Greater access of primary education Participation of local community in
the system 5000+ Students across 8 districts,
145 villages Value system- prohibition of violence Parent teacher meetings
Other programs
Employing the unemployed program Bandhan health program Bandhan livelihood program Axis bank Bandhan holistic
assistance
Arfa bibi•Begging
•Indentified as HCP
•4 Goats 11 Goats
•3 Goats 10 Chicken
•Poultry farm
•Land lease – Agrcultural cultivation
MF loan = 3000 INR
“My life changed entirely in 24 months….. I owe it all to Bandhan. ”
Future Plans (Prognosis)
Pan India coverage to reach out to the unreached.
Diversifying/modifying products according to the clients need.
Achieve the vision statement.
Thank you