C. Joslin Thambi. Vision “A poverty free, prosperous, equitable and sustainable society” ...
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- Slide 1
- C. Joslin Thambi
- Slide 2
- 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
- Slide 3
- 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