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