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C. Joslin Thambi

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Vision A poverty free, prosperous, equitable and sustainable society Mission To empower 15, 00,000 poor and vulnerable households economically and socially by 2015, through establishing sustained access to financial and capacity building services Slogan 15 by 15 BWDA FINANCE LIMITED

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History/ Genesis of BWDA/BFL 1985: Bullock-cart Workers Development Association (BWDA) started work with the aim to work for the socio-economic development of bullock-cart workers & their families in TN. 1986: Registered under the Tamil Nadu Societies Registration Act, 1975. 1988: BWDA started forming groups of women members of bullock-cart workers families 1992: it started working with other low income families Initially, promoted SHGs to link them with local banks for loans. After 1998: Began lending to SHGs to supplement loans from banks. 2003: BWDA has taken over an NBFC, renamed as BWDA Finance limited (BFL). Increasingly BFL undertakes the microfinance operations, BWDA handles the agenda of development activities: Education, Health & Sanitation, Awareness Programmes, Vocational Training as well as group promotion. BWDA FINANCE LIMITED

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Geographical Coverage BWDA FINANCE LIMITED

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BFLs Growth BWDA FINANCE LIMITED S. No Particulars2006-072007-082008-092009-10Upto July 2010 1Branches1525263237 2Staff297555604651667 3SHGs1270815723194122388924245 4Members236388292729358840437317443419 5Cumulative Borrowers 340671544744701710877498906751 6Active Borrowers 185448210721263968220645187896 7Portfolio (INR. In Million) 640.50851.301019.821181.431163.28

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Rating BWDA FINANCE LIMITED S.No.YearRating Institution Supporting Agency BWDABFL 1.2004M-CRILC-GAP & BFLA- 2.2006M-CRILBFLAA 3.2007M-CRILBFLAA 4.2008M-CRILBFLA- 5.2009CRISILBFL-MFR-4

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Growth Strategy Penetration & expansion strategies adopted Diverse approaches SHG, JLG, Individual Saturation of blocks and districts Cluster approach SHG Formation in new areas based on demand Less interest rate on reducing balance. Monthly repayment. Career growth opportunities for staff. Decentralised management. Diversified sources of Borrowings Various loan products BWDA FINANCE LIMITED

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Challenges Regulatory constraints - Unclear stand of various State Govt.,/RBI about the role of MFIs Government schemes for waiver of loans Govt. sponsored groups operating with political ambition. Multiple lending resulting in unhealthy competition Increase in cost of funds High demands of return & control by external investors Inability to meet the demand of the customers due to financial constraints Equity Large community share holders & less external investors. Lack of tailor-made software for local needs Expectation for regular dividend by the community share holders Huge gap between the demand and supply of new funds BWDA FINANCE LIMITED

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Opportunities Emerging new opportunity to finance in semi urban & village areas for income generation schemes. Excellent scope for introduction of new, viable, need based, customer oriented financial & non financial products. Growing demand from rural households, due to inability of financial sector to penetrate and bring about financial inclusion. Willingness of Institutional supporters Acceptance of External and Internal Investors Induction of new professionals Strong support service from BWDA,CED and Micro-save Credit Plus services to the clients and their family members Potential of e-banking & m-banking and other technology oriented services Fine tuning of organization due to regulatory demands BWDA FINANCE LIMITED

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Funding Initially provided bank linkage Started getting & giving loans from financial institutions at less interest rates. Graduation to a NBFC more avenues Increase in cost of funds inability to provide cheap services as before. Institutional investors access to funds Equity investors demand for more control tendency to drift from mission to meet investor demands Investors also drive for organizational betterment due to their standardized benchmarks Commercial investors may affect the social motive importance of choosing right investors Focus on transferring maximum benefits to the poor BWDA FINANCE LIMITED

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Funding Gap in capital if Venture Capital and investors lose interest Constant pressure to improve operational standards & returns to rouse the interest of investors Adequate systems & controls for efficient credit management Unhealthy competition by certain organizations with excess funds but lack of social motive which disrupt functioning of MFIs working for betterment by multiple lending to its clients. Savings a source of funding and regulatory restrictions Plans to tap other sources of funding Impact of securitization on the poor and conflict with return driven investors BWDA FINANCE LIMITED

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Financial Partners Rabo Bank Cordaid SIDBI Deutsche Bank Rashtriya Mahila Kosh Manaveeya Lakhmi Vilas Bank Axis Bank ING Vysya Bank Corporation Bank HDFC Bank FWWB of India IDBI Bank Limited Karur Vysya Bank Development Credit Bank South Indian Bank State Bank of Tranvacore Canara Bank Indian Overseas Bank BWDA FINANCE LIMITED

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Financial Partners Rabo Bank Introduction - Boulder microfinance training 2005 Less interest rates Capacity building & handholding Cordaid Introduction Tsunami funding after BWDA was acknowledged for its activities when they were evaluating the efforts of other institutes they funded Less interest rates Capacity building & Institutional support SIDBI Microfinance activities Capacity building support BWDA FINANCE LIMITED

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Financial Partners Deutsche Bank Introduction by tsunami funding Less interest rate Rashtriya Mahila Kosh less interest rate Other partners Funding on demand Comparatively high interest rates All financial partners provide financial support Funding is based on BWDA/BFLs efficient performance Partners play a key role in the organization's growth Certain partners have evolved from loan providers to equity investors BWDA FINANCE LIMITED

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Financial Partners Performance criteria and standardization demands of funders has increased over time Partners providing capacity building are very important as they facilitate improvement in organization morale. Partners providing funds at less interest rates play a critical helping the organization provide better service to the clients by reducing their interest rate burden Mutual trust & returns to all participants Motivation to fund profit focus or social focus? BWDA FINANCE LIMITED

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Financial Institution wise Loan Sanctioned & Outstanding BWDA FINANCE LIMITED InstitutionSIDBIAXISHFBFWBRABCORDEUINGKVBSIBHFLDCBCNBMHIIDBI Loan Amt109887000170017052312931331000 10502009005001200900 OSB535014851337671061171332866768581564385001200900

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Operational Partners RABO Foundation CORDAID Deutsche Bank Small Industries Development Bank of India (SIDBI) Tamil Nadu State Social Welfare Board Tamil Nadu Voluntary Health Association Horticulture Department of Tamil Nadu LIC of India United India Insurance Company Rural Development Agency BWDA FINANCE LIMITED

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BWDA/BFL activities Education services for the underprivileged BWDA Arts & Science college BWDA Polytechnic college BWDA Schools BWDA Summer School Skill & Livelihood training Entrepreneurial development activities Health programs Social, environmental, health, educational, technical awareness programs BWDA FINANCE LIMITED

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A Few Photos of our Activities Skill Training Programmes BWDA FINANCE LIMITED

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Income generation activities BWDA FINANCE LIMITED Multipurpose shop Photo copier & Telephone booth Electrical shop Milk vending

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BWDA Educational Programmes BWDA FINANCE LIMITED BIDFin, Courtalam BWDA Polytechnic College BWDA School BWDA Arts & Science College

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BFL Branch Offices BWDA FINANCE LIMITED Villupuram II Villupuram Dist. Panagudi Tirunelveli Dist. Madhakadipet - Pudhucherry Dist. Ambasamudram Tirunelveli Dist.

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Thank you BWDA FINANCE LIMITED BFL