micro finance indian scenario

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March, 2011, Issue - X

A JOURNAL FOR MICROFINANCE

Sa-Dhan: The Association ofCommunity Development FinanceInstitutions (CDFIs) represents

countrywide a total of 251 membersacross 20 s ta tes wi th loanoutstanding of Rs. 18,344 crore (4billion USD) and client outreach of2.67 crore (26.7 million).

Sa-Dhan stresses on needto protect clients 1

New draft of MFI Bill togive more teeth to RBI 6

Upcoming Events 16

Sober Mood at NationalMicrofinance Meet 2

Sa-Dhan-FICCI NationalMicrofinance Conference2011 - Re-engineeringMicrofinance: Need for NewProducts and Policies 3

The Budget Holds Positive Vibes for MFIs 7

Lack of funding still plaguesIndia microlenders 8

Impact of Current Scenarioof the Sector on Poor Clients – Voices from the field 9

Some self-help - and tribalwomen mean business 13

Need for reinventing the SHGbased microfinance model 10

ESAF to impart tech lifeskills to SHG members in TN, Kerala 11

M S Sriram: Microfinancepolicy - Rewind orTurnaround? 11

Options for low-incomehouseholds 14

*For internal circulation.

Sa-Dhan stresses on needto protect clients

*

Terry J O'BrienFinancial Chronicle

March 24, 2011Hyderabad

The microfinance industry, which has been facing

impediments owing to unhealthy practices, needs

to emphasise on client protection measure and

social performance needs. This could be done by widening

the choice on products and services and putting in place a

feedback and grievance-redressal mechanism, says Sa-

Dhan, a self regulatory body of micro-finance institutions

(MFIs). The new products could be innovated to meet

non-core needs such as enterprise skills training and other

livelihood support, education in basic health and nutrition

and linkages to medical services.

“Indian microfinance, in essence, is a single product credit

industry, making it imperative to find ways to design

basket of products and services to create 'real' financial

inclusion,” says the Client Protection & Social

Performance of Indian MFIs, an empirical report.

Around 109 institutes participated in various aspects of

the study. Right now, nearly one-third of the members are

facilitating savings, largely through the SHG bank linkagemodel. A number of them are beginning to offer

remittance facilities and pensions. In fact, the Malegam

Committee too, set up to study micro-finance in India, has

recommended to the effect that the MFIs to lend in a

targeted way to constitute 75% of their loan assets to be

under income generation activities.

In the wake of the reputation risk triggered in Andhra

Pradesh, Sa-Dhan had conducted a study to gauge the

social performance of its MFI members. The analysis in

this report shows that for better social performance of MFIs the efforts should be directed at avoiding over

lending and multiple lending and imparting financial

literacy to enable the clients to take informed decisions.



2

Board

Smt. Ela R. Bhatt,

Chair Emertius

Ms. Jayshree Vyas,

SEWA Bank (Chairperson )

Mr. Amiya Sharma,

RGVN (Co-Chair )

Mr. V. Salimath,

IDF(Treasurer )

Executive Director

Mathew Titus

Vice President

Achla Savyasaachi

Editor

Nilesh Arya

Published from

12 & 13, Second Floor,

MPTCD building, Special

Institutional Area, Shaheed

Jeet Singh Marg,

New Delhi - 110 067

Ph: 011 47174400,

Fax: 011 47174405

Web: [email protected]

Contact

Nilesh Arya :

Cell: +91 9818394477

March, 2011

Vibhuti AgarwalThe Wall Street Journal,16 March 2011

s India looks like it's heading toward national regulation of the microfinance industry,microlending institutions are also saying they need to plug loopholes in the crucial sector that aims to benefit the poor.A

Sober Mood at National

Microfinance Meet

Sanjay Sinha, managing director of Micro-Credit Ratings International Ltd., a leadingmicrofinance rating agency in Haryana said there was a lot that could be fixed. “The high growth led

to multiple lending and to over-indebtedness. Everybody needs to learn lessons from it,” he told anational conference on microfinance that got underway in New Delhi on Tuesday.

It’s the first major gathering of microfinance institutions since a crisis in the industry that sawAndhra Pradesh impose severe legislation last year on the lending groups after debtors in the statereported being harassed by them. Mr. Sinha also said it was important to understand the limits of what credit could do. “Microfinance alone cannot alleviate poverty–it needs to be mixed withactivities that provide skills. We need to put more effort into developing relationships,” he said. Mr.Sinha emphasized on the need for regulation to protect borrowers and enable microfinanceorganizations to function in a systematic manner.

Jayashree Vyas, of Sa-Dhan, the industry association that sponsored the conference, alsounderlined the need to get “closer to the clients and ensure ethical lending and recovery

practices.”Many microlenders said it was vital to have national-level regulation. In a report released

in January, India’s Reserve Bank proposed certain measures that could form the basis of suchregulation, including capping interest rates for loans to save borrowers from exploitation.

The Economic Survey that was released last month also directed the government to take steps toensure that borrowers understand the terms of contract when they borrow from microfinanceinstitutions. Shashikant Sharma, a senior bureaucrat in India’s finance ministry, promised thatmicrofinance was high on government’s agenda for financial inclusion. “The sudden and rapidgrowth of microfinance institutions has given rise to lending malpractices. A strong and effectiveregulation of the sector is therefore imperative to put the sector on the path of providing inclusivegrowth,” he said.

Last October, the government in Andhra Pradesh cracked down heavily on private microfinanceinstitutions, banning many of their activities following a string of suicides by borrowers who wereunable to pay their debts. R. Subramanyam, a spokesman of the Andhra Pradesh government,

said at the conference that the microfinance industry “needs to rediscover itself” and remember itsfocus on helping the poor. “The prosperity of clients and regulation of institutions are important for sustainable

The two-day National Microfinance Conference began in New Delhi on Tuesday.



March, 2011 3

Sa-Dhan-FICCI National Microfinance

Conference 2011 - Re-engineering Microfinance:

Need for New Products and Policies

Sa-Dhan in collaboration with Federation of IndianChambers of Commerce and Industry (FICCI)organized the National Microfinance Conference

2011 on “Re-engineering Microfinance: Need for New Products and Policies” on 15th and 16th March 2011 atHotel Ashok in New Delhi. The conference focused on theissues emanating from situation of absence of liquidity inthe sector, Malegam Committee recommendations and themicrofinance bill proposed by the government. Theconference attracted 800 participants comprising of theParliamentarians, RBI, Ministry of Finance, NABARD,SIDBI, banks, insurance companies, MFIs, community

based organizations, livelihood support organizations,academia etc. A brief of the deliberations is being provided

below:

The conference commenced with an inaugural address byShri Shashi Kant Sharma, Secretary-Financial Sector,Ministry of Finance. He reiterated the important role of MFIs in financial inclusion and the Government’scommitment to promoting and supporting the sector. In his

speech, he also emphasised the need for a suitableregulatory framework for the sector and urged MFIs to

follow the sector’s code of conduct . After his remarks, theconference also benchmarked the release of Sa-Dhan’snew publication titled “Client Protection & Social

Performance of Indian MFIs – An Empirical Report.”

“Reassessing Microfinance: Past Achievements andFuture Challenges,” the panellists in this first sessionreflected on the state of the microfinance sector, focusingon the question of whether microfinance has achieved itsobjective of helping the poor. Sanjay Sinha, ManagingDirector of M-CRIL, stated that practitioners should re-examine the dynamics of growth in the sector and cast aside the false belief in zero delinquency in order toaddress the problems that led to the AP crisis. Further, hesaid, microfinance alone cannot alleviate poverty - it must

be combined with other livelihood interventions. R.Subrahmanayam, Secretary of Rural Development,Government of Andhra Pradesh said that themicrofinance industry needs to “rediscover itself” by

focusing on increasing client well-being and ensuring thatclients can repay before disbursing credit. He expressedthe Government’s readiness to engage with the sector toresolve the existing stalemate in Andhra Pradesh.Vijayalakshmi Das, CEO, Ananya Finance for InclusiveGrowth, acknowledged that commercialization haschanged the relationship between organizations and their

clients with the caveat that many smaller MFIs still focuson building these relationships. After enumerating threesimilarities between events in Andhra Pradesh andmicrofinance crises in other countries, Greg Chen, SouthAsia Representative, CGAP spoke about the promise that

Shri Shashi Kant Sharma, Secretary-Financial Sector, Ministry of Financereleasing Sa-Dhan's report on “Client Protection & Social Performance of MFIs”

holistic development organizations (ex.BRAC in Bangladesh) and nextgeneration financial services modelssuch as FINO and IFMR Trust’sKshetriya Grameen Financial Serviceshold for increasing financial access.Rajeev Malhotra, Economic Advisor

to the Finance Minister, summarizingthe session acknowledged the need for flexibility in approach, transparency inoperations and financial literacy of theclients

“Financing Microfinance: LoweringBarriers to Investment,” AseemGandhi, Advisor to Sa-Dhan in thesecond session of the Conferencedetailed the risks associated withinvesting in microfinance and outlined

various ways that government andmicrofinance organizations could



March, 20114

encourage greater investment in the sector. RichardWeingarten, Managing Director of the NorwegianMicrofinance Initiative spoke about the need for aregulatory certainty as well as a framework that supports

microfinance activity without restricting growth. JayantaK Sinha, Chief General Manager, State Bank of Indialisted reasons why banks currently find it difficult to lendto microfinance institutions including a lack of transparency in their operations and concerns about MFI

governance. According to Samit Ghosh, ManagingDirector of Ujjivan Financial Services, microfinanceinstitutions should diversify their sources of debt and

forgo massive returns for a slower but more sustainable growth trajectory. N K Maini, Deputy ManagingDirector, SIDBI, summarized the initiatives taken by theLender’s Forum to improve transparency and certain

covenants in the lending agreement to ensure responsiblelending.

“Pricing: Balancing Financial Viability with SocialImpact,” panellists in this third session discussed the issueof interest rates and product pricing and most agreed thatan interest rate cap would be damaging for the sector aswell as for clients. Ramesh Ramanathan, Chairman of Janalakshmi Financial Services, said that an interest ratecap would negatively impact financial inclusion efforts since organizations would no longer find it profitable or feasible to expand to underserved areas of the country,where operating costs are higher. He suggested thatreturns could be regulated instead of the interest rate, ameasure that would not tie the hands of smaller MFIs andorganizations operating in remote rural areas. ManishKhera, CEO of FINO, suggested that microfinanceinstitutions could help reduce costs by borrowing from theBC model which has substantially lower per client costs.Arindom Datta Senior Director of RABO IndianFinance, agreed that an interest rate cap at 24 percent, assuggested by the Malegam Committee, would be harmful.He said that a flexible interest rate cap in the area of 24-34% may be more reasonable. Royston Braganza, CEO,Grameen Capital spoke about the need for domestic funds

for microfinance as well as the importance of tracking andmeasuring social impact. T K Arun from timesgroup,empathised the need for working with political circle inaddition to improving processes and introduction of technology

“Diversifying Financial Products for the Poor:MicroInsurance and Savings”, in this first Break Awaysession, Manoj K. Sharma, Director, MicroSave

presented the highlights of the study on savings andinsurance in South Asia. Francis Somerwell, Director,MicroCare mentioned that it is necessary to develop

participatory methods of educating potential customersand providing insurance products. Suresh Krishna from

Grameen Financial Services expressed that there is a needfor policy framework with suitable regulations andrestrictions that allow MFIs to offer savings and insuranceservices. Priya Kumar, AVP-Rural & Agri Business Group

said that micro insurance sector needs partnerships to besustainable. Gauri Shankar from IFC summerized thesession highlighting the need for appropriate policyframework, customised products, accountability intransactions and suitable pricing

Making the Business Correspondent Model Work:Challenges and Opportunities, in this breakaway session-IIthe discourse revolved around why the BusinessCorrespondent (BC) has not yet achieved the scale andimpact on financial inclusion that many had predicted.Beginning the session, Subhra Jyoti, CEO of Asomi

spoke about the role of mobile technology and POSdevices in reaching rural customers. Gobinda Bannerjee,General Manager Punjab National Bank, examined theviability of the BC model from a banker’s point of view – he opined that the model will not be viable until and unlessinstitutions can successfully offer savings plus products. Inaddition to speaking about importance of financial literacyin increasing account usage, Kartik Mehta, COOSwadhaar FinAccess, argued that to make the model moreeffective the RBI must allow NBFC-MFI’s to be BCs.Bijoy Bhattarcharya, Professor at WeSchool, noted that

banks will have to “hand hold” the model in the near termin order for it to be viable.

“Community Based Models: Voices from the Field,” theBreak Away session III, women from different statesrelated their experiences working for community-basedorganizations as well as their expectations from

policymakers and practitioners. Ms. Sarifan fromRajasthan described her large federation of 8000 as unifiedand dedicated to helping poorer members of society. Shethinks that credit is helpful when it is offered at a relativelylow rate of interest. Ms. Shiela spoke about the successher group has had at drawing women out of confinement,improving well-being of group members and their

families, and promoting savings behaviour. She is lookingfor financial support from banks so that she can continueher activities. Ms. Banoo Sheikh cited several instanceswhen her group mobilized to protect its members includingan incident where the group members protested against the

presence of a local bar which served men in her community. Her group has been successful at increasingsavings, addressing domestic violence and other socialissues and providing for members during emergencies.

The second day of the conference began with the SessionFour, titled “Reinventing the SHG Movement.” Ganesh

Pandey, Convenor, Shramik Bharati began the proceedings by noting that the SHG movement is indecline, as evidenced by numbers contained in the State of



March, 2011 5

the Sector Report. However, he predicted that themovement will be able to expand due to the uniongovernment’s creation of a 500 crores fund for SHGdevelopment. L.H. Manjunath, Executive Director of

SKDRPD, outlined the positive and negative aspects of the SHG model and outlined what he sees as the wayforward for the movement. S.L. Kumbhare, the Chief General Manager of NABARD, reminded delegates that the 7R’s are key in revitalizing SHGs: regular savings,regular meetings, regular internal lending, repeat loans,repayments, regular bookkeeping, and rotation of leadership. John Gaunt, Director of GY Associates Ltd,focussed on operations and the role of technology infacilitating outreach. Expressing concern for the sector inIndia, Rohini Nilekani stressed the need for community

based infrastructure for poverty alleviation and

empowerment

“Reforms in Practice: Code of Conduct and Self-Regulation,” panellists in session V of the Conferencediscussed the possibility and effectiveness of self-regulation at the institutional and sector-wide level. R.Prabha, Specialist in Banking and Microfinance, framedthe discussion by noting the need for new regulation andhighlighting successful examples of self-regulation.David Gibbons, Chairman, Cashpor Micro Credit, toldthe audience that his organization is one of only four microfinance organizations that have undergone a Codeof Conduct assessment, a review which allowed the

organization to recognize errant behaviour. WilliamTucker, Executive Director of Seep Network, looked toBolivia’s BancoSol as an example of successful client-institution interaction. He also spoke about theimportance of allowing market forces to work within anappropriate regulatory framework. He suggested it will

be useful for building mutually supportive frameworksfor supervision.

“Building Financial Infrastructure: How can the StateHelp”, the session VI of the Conference deliberated uponthe role of the state in creating infrastructure for the

efficient delivery of microfinance services, as set byShubhashis Gangopadhyay , Director, IndiaDevelopment Foundation and moderated by Y C Nanda, Chairman of Agriculture Finance Corporation. ColinRaymond from IFC said that credit information bureausare examples of empowering infrastructure and is a must need for microfinance sector . Vivek Kulkarni,Managing Director, Brickwork Ratings said thatinfrastructural set ups should ensure that the interest of

both MFIs and clients are not compromised. MathewTitus, of Sa-Dhan stressed upon the need for skilldevelopment and effective supervision of small and

regional MFIs

“Smart Regulation: Creating Policies that Work,” sessionVII, panellists debated existing regulatory proposals andoutlined recommendations for a modified regulatoryframework. Baijayanta Panda, Hon’ble Member of the

Parliament, spoke about of self-regulation and a statutoryregulatory framework for microfinance organizations.Such a framework would not stifle the industry. M.R.Umarji, the Chief Legal Advisor of the Indian BanksAssociation, presented the current regulatoryframework, and presented what he saw as a desirableframework for TF Thekkekara, Additional Chief Secretary of the Department of Minorities Affairs of theGovernment of Maharashtra, noted that the existence of multiple regulators could lead to chaos but alsoacknowledged that other regulators may be necessary if RBI chooses to only regulate NBFCs. Thiru K Allaudin,

Principal Secretary-PR & RD of the Government of Tamil Nadu, suggested that regulation should take placeat the national level, not at the state level. In addition, heemphasised the need to follow and build the supportframework for the Sa-Dhan code of conduct. VijayMahajan, Founder and Chairman of the BASIX Group,said that recent actions have nearly destroyed a sector thathas done so much good work for the poor. Mahajan statedthat we should look beyond the current situation andfocus on the potential of the sector.

In the closing session, titled “The Future of Microfinance,” Mathew Titus, Executive Director of Sa-

Dhan, posed questions to a distinguished panel on thefocus of microfinance in the future.

The questions focussed on the following

1. The role of state governments and their interventions in the supervision of microfinanceinstitutions.

2. The potential role of NABARD, and theavailability of refinance at lower costs

3. The focus of microfinance institutions in

reaching the poor. The speakers including ThiruK Allaudin, Jayshree Vyas, M.R. Umarji,Sukriti Likhi, K Muralidhara Rao all of whom discussed measures that institutions could take to

better serve their clients. Towards the end of thesession, Jayshree Vyas emphasized theimportant role of financial literacy in improvingfinancial services usage; she also announced thatthe year-2012 would officially be the Year of Financial Literacy.



New draft of MFI Bill to give more teeth to RBI

March, 20116

Dinesh UnnikrishnanLivemint.com

March 25, 2011

Mumbai:

he proposed microfinanceBill for governing India's Rs.22,000 crore microlending

industries is set to give more teeth tothe Reserve Bank of India (RBI) toregulate larger microfinanceinstitutions (MFIs). This will bedone by removing such entities fromthe purview of laws enacted by stategovernments such as the recentAndhra Pradesh Act.

The Union government last week appointed a committee under financial services joint secretaryK.V. Eapen to redraft the Billfactoring in the current realities inthe microfinance industry and therecommendations of the Malegam

panel, appointed by RBI. The panelhad suggested the creation of a newcategory of non-banking financialcompany MFIs, or NBFC-MFIs.

I n k e e p i n g w i t h t h erecommendations of the Malegam

panel, the Bill will focus more on borrowers and strengthen the handsof RBI to regulate MFIs by way of clearly defining such institutions,according to two members of the

panel. Both of them declined to be

identified because they are notsupposed to talk to media until thecommittee redrafts the Bill.

More importantly, the modified Billis expected to cover the entiremicrofinance sector, including thelarger entities. The earlier draftcovered only non-NBFC MFIsincorporated as trusts and non-governmental organizations thatconstitute a very small part of the

total industry. It also envisagedNational Bank for Agriculture

and Rural Development (Nabard)as the regulator for smaller MFIs.

T

The proposed microfinance Billassumes significance as it is expectedto resolve the regulatory uncertainty inthe ailing Indian microlending sector

by providing a clear framework. Most banks have stopped giving fresh loansto MFIs due to this uncertainty. Topofficials from RBI, Nabard andmicrofinance industry associations aremembers of the committee headed byEapen.

The committee is expected to submitthe modified Bill to the government bythe end of April and this will be tabledin Parliament in the monsoon session,according to members of the

panel.“There is a complete clarity thatit (microfinance sector) will comeoutside the purview of stategovernments. The new microfinanceBill will categorically say thatmicrofinance is a properly definedf i n a n c i a l s e r v i c e a n d n o tmoneylending,” one of the twomembers said.

“Through a process of clarifyingthings, the Bill will strengthen thehands of RBI with respect to MFIregulation,” this person added. So far,moneylending is treated as a statesubject and, hence, a state has the

powers to control MFIs. Exercisingthis power, the Andhra Pradeshgovernment passed the AndhraPradesh Micro Finance Institutions

(Regulation of Money Lending) Act,2010. The Act defined an MFI as any

person or entity “in whichever manner formed and by whatever name called,whose principal or incidental activityis to lend money or offer financialsupport of whatsoever nature to thelow-income population”.

“The committee has been formed toquickly redraft the Bill so that it can be

presented at the monsoon session of Parliament. We do have the Malegamrecommendations before us. Themicrofinance sector has evolved fromthe past and is on a different scale now.

Hence, the need for new regulation,” asecond member of the government panelsaid. MFIs are in the business of givingtiny loans to low-income borrowers.They typically charge their borrowers24-32% and raise money from banks at9-12%. More than a quarter of India'smicrofinance industry is concentrated inthe southern state of Andhra Pradesh,which is home to some of the leadingIndian MFIs such as SKS Microfinance

Ltd, Share Microfin Ltd and Asmitha

Microfin Ltd.

MFIs plunged into a crisis in mid-October following a state law by theAndhra Pradesh government to check alleged coercive recovery practices of some microlenders. The law created anuproar among MFIs after it prohibitedthem from collecting dues on a weekly

basis and instead asking them to do soonce a month. It also made it mandatoryfor them to secure government approvalfor every second loan issued to the same

borrower.

MFIs' loan collection rates dropped to10-20% in Andhra Pradesh and theyvirtually stopped issuing new loans.This, in turn, prompted banks to stopfresh lending to MFIs. In October, RBIappointed the Malegam panel, whichsuggested, among other things, cappingthe interest rates charged by MFIs at24% and their margins at 10-12%.

Senior executives in the microfinanceindustry said the Central legislation isexpected to put an end to thecrisis.“Today, all of us (MFIs) areworried about the political risk andregulatory uncertainty looming over themicrofinance industry. The proposedBill is expected to solve these issues bygiving a single regulatory framework,”Raja Vaidyanathan, chairman andmanaging director of AsirvadMicrofinance Pvt. Ltd, said. Chennai-

based Asirvad has a loan book of Rs. 115crore and 230,000 borrowers.

The earlier draft covered only non-NBFC MFIs incorporated as trusts and non-governmental organizations that constitute

a very small part of the total industry



March, 2011 7

The Budget Holds Positive Vibes for MFIs MATHEW TITUS The Economic Times2 March 2011

he Union Budget is very nuanced for themicrofinance sector , consider ing thecircumstances that the sector finds itself now

today. Reading it together with the Economic Survey,therefore, makes the most sense. The industry’s role inexpanding the goal of financial inclusion is the centre-

piece of the government’s view, together with thespecific recognition that microfinance institutions

(MFIs) are a very significant channel for the achievingthis. Clearly, at this point, all entities — from large MFIsto the small community based federations — getencompassed in this vision.

T

Within such a broad swathe of service providers, thegovernment has obviously got to make choices. Theevidence of the last few years has shown that smaller MFIs and a few of the NGOs doing microfinance have notgrown as fast as the others. Primarily caused by their lack

of capital, the fund now managed by Sidbi will be usefulin spurring the ones on the lower rungs into more servicedelivery, especially in the poorer areas.

In this context, the announcement made by the financeminister to strengthen the role that MFIs play in financialinclusion by instituting a . 100-crore India microfinanceequity fund with Sidbi is a welcome move. It wouldenhance the ability of smaller MFIs, mainly the not-forprofits and cooperatives, to achieve scale andefficiency in operations. If the evidence of the earlier microfinance development and equity fund is any

indication, more money will not be a problem from thegovernment, provided disbursals are made with speed andfocus, especially in unravelling the complexity of the

work of smaller MFIs. Hence, the objective of getting allthe channels to grow with a steady speed will be feasible.

The corpus of . 500 crore for the women’s SHGdevelopment fund is an extremely important stepforward and it will bring back community focus infinancial inclusion. Self-help groups (SGHs) have morethan . 20,000 crore outstanding, but are displaying signsof slowing down because of a variety of reasons. Most

prominent among them are the lack of promotional skills,high cost of accounting skills and disciplines and theabsence of any significant technology solution for service providers. This pool of money will enable SHGinstitutions to get the resources they need for these

functions. That said, the challenge will be in thedeployment of this money effectively.

One hopes this fund will help self-help promotinginstitutions (SHPIs) to promote better quality SHGs aswell their capacity building. The increased emphasis onthe recognition of the role of micro and small enterprisestowards financial inclusion is also a positive move. Thecurrent scenario of the sector is worrisome, as lakhs of

poor households are waiting for their next cycle of credit.MFIs are facing an acute liquidity crunch, and need anurgent funding line to keep up their operations. There is

an urgent need to look into this situation.

So, it’s imperative that the announced “appropriate legalframework” for microfinance is put in place for enhancedmicrofinance services to the poor, not just credit, but awhole range of services that reduce their vulnerability aswell as enhance income. This will diminish the politicalrisk that the industry is now weighed down with at

present. As a national association, Sa-Dhan works on the policy advocacy for a facilitative legal and regulatoryenvironment for microfinance, building transparency,

promoting ethical practices and capacity building of

stakeholders in the microfinance sector. It is rolling outimplementation of its code of conduct among themembership in terms of seeking data throughcompliance reports.

More than 100 members have already submitted their data and Sa-Dhan has started validation of the reports infew regions. An analysis of the reports will be publishedvery soon, and it will include performance of memberson ‘social performance’ indicators. The rolling out of these initiatives will enable the microfinance industry totake stock from the tremendous damage and slowdown it

is in the midst of.(The author is executive director, Sa-Dhan)



March, 20118

Lack of funding still plagues India microlendersBusiness StandardMarch 16, 2011

New Delhi:

ix months after the state of

Andhra Pradesh slapped

restrictive laws on India’s

microlenders, availability of

funding continues to plague the

once-thriving lenders to the poor

despite official encouragement.

Confidence building is needed torevive financing for microfinance

operations, said Mathew Titus,

executive director of Sa-Dhan, an

industry body . “You need

somebody to step up and say the

industry is fine,” Titus said on the

sidelines of a conference organised

by Sa-Dhan, which represents

about 250 non-profit Indian

microlenders.

The industry suffered a setback last

year when Andhra Pradesh, which

had the largest microfinance

market in India, enacted legislation

to regulate the industry following

complaints about high interest

ra tes , aggress ive recovery

practices and overextended

borrowers. Since then, India’scentral bank and finance ministry

have sought to allay concerns and

encourage funding. While some

lenders including state banks and

investors have resumed lending, a

lack of funds has hurt smaller

institutions, which typically have

higher operating costs.

S

“Funding is the biggest problem.

The cost of delivery is too high due

to communication problems, and

weekly repayment schedules,”

said Biplab Saharia, who manages

loans for Satra, a non-profit that

serves far-flung customers in the

northeastern state of Assam.

However, investors remain wary

and borrowers are confused about

the future of microfinance, which

has attracted for-profit players intoan industry that some critics argue

has strayed from its social mission

to help alleviate poverty.

Loans in India’s $4 billion

microfinance sector average about

$150, and are mostly to women.

Jayant Sinha, chief general

manager of State Bank of India,

India’s largest lender, said banksneed to exercise caution in lending

to microfinance firms. “We have to

be careful... ultimately we are

responsible for our lending,” he

said. The reluctance of domestic

lenders is a deterrent for

international investors, said

Richard Weingarten, managing

director of the Norwegian

Microfinance Initiative, aninvestor in Indian MFIs.

“One of the biggest concerns is

lack of liquidity from banks,” he

said. An uncertain regulatory

outlook has also hurt the industry.

A panel appointed by the Reserve

Bank of India recommended that a

separate category of non-banking

financial companies (NBFCs) be

created in the sector and regulated

by the RBI. Non-profit MFIs

would be regulated by a separate

institution. In the latest Budget,

the Finance Minister proposed to

set up Rs 100 crore ($22 million)

equity fund for the sector and Rs

500 crore fund ($111 million) to

promote women’s self-helpgroups, solutions critics say are

well-intentioned but inadequate.

Some in the industry have also

called for financing options in

case traditional lenders shun the

industry.

“We should look beyond PSLs

(priority sector lenders), and look

at securitisation,” said SamitGhosh, CEO of Ujjivan, a large

for-profit operator based in

Bangalore. Shares of SKS

Microfinance, India’s largest and

only publicly listed MFI, have

fallen by more than half from their

peak after a hugely successful

public offer last August. The

RBI’s decision on the panel’s

recommendations, which industry participants expect will determine

the sector’s future, is expected by

the end of March.



March, 2011 9

Impact of Current Scenario of the Sector

on Poor Clients – Voices from the field

The current scenario of themicrofinance sector in Indiahas adversely impacted the

poor. In the absence of liquidity theMFIs specia l ly the smal ler organizations are unable to continuelending to the poor. Below is a brief of client’s situation amidst the

present scenario of the microfinancesector. These narratives have been

provided by our members.

BISWA Maa Basantei Aruha is a Self Help Group in the District of Balasore, Odisha formed in the year 2009. There are 17 members whoobtained their 1st Micro Financeloan for small scale business inGrocery with an amount of Rs.31350/-. The recovery was on timeand in the stipulated 12 installmentsthe loan was repaid by them. Theythen availed the 2nd loan of Rs.

125400/ towards expansion of the business . Now they havewidespread transaction and for the

purpose they need a 3rd term loanthat they applied for. But due to the

present market scenario, theorganisation is not in a position tosupplement them with the amountand this has affected the group bothfinancially and morally. As they arein a wide spread business in thelocality, it has affected their

productivity and marketing. Theyrun their family through the incomeand with this crisis their businesstransaction has been affected and soalso the family.

(Contributed by BISWA)

Nusret Jehan of Itgaon Village,Kakori is a member belonging to theminority community. She has beenassociated with a Self Help Group

promoted by NEED. She had nomeans of income and was primarilyengaged in labour and household

work. Through NEED Skill Up-gradation programme for variouscrafts, she learnt the scaling of Zardozi art & craft and picked up fast.Through NEED Microfinance, sheavailed micro-loans of Rs. 10000/-first, repaid it and later she hasavailed Rs. 15000/- in second cyclefor working capital support. Her work has flourished with marketingentrepreneurship support which is

also through NEED activities in theoperational area. However, evenwhen her work & craft has been onthe verge of scaling up, she lacksavenues and working capital supportfor growth. The income generationthrough NEED for Nusrat Jehan andher household & family has been highand up-to-the-mark but growth hasnow been hampered due to externalfactor. She was also a part of the teamthat went to Chennai for patenting of

Intellectual Property Rights (IPRs) of Chikankari. She is now completelyhelpless in seeking micro-loan andmicro-finance support for scaling-upof her craft enterprise nor evenfinancial support from formalFinancial Institutions (FIs) are in aright attitude to support her. But shelanguishes in the real helping handand that is a constraint. FormalFinancial Institutions seldom comeforward for real support to the

constraining individuals especially incase of women.

(Contributed by NEED)

Janaki is based at a small town inBhadrak district of Orissa. She is ashy, diffident woman but she waskeenly interested in starting her ownenterprise of making bricks as shehad inherited a small manufacturingfacility for the same. She had alsotaken training in the manufacturing

process. The production in this unit

was closed because of shortage of funds.

She did not know whom toapproach for assistance so shegathered information on theoptions available in the market.Finally, she took a ProgressiveLoan from Sahayata, bought someraw materials for her unit andstarted production. Gradually, she

started earning a good amount asthe business started reaping a profitof around Rs.5000 per month. Shealso managed to send her twodaughters to school.

She desired to expand her businessand buy raw materials to availeconomies of scale as she wishedto have more orders in the nextseason. However, because of theadverse circumstances in the

microfinance industry, she wasdenied a second loan of Rs15000as the disbursements were closedin Orissa. Due to this denial, shehas suffered a setback. Her

business has been affectedadversely because now she cannoteven buy enough coal for her enterprise. Her business income is

proving to be insufficient and she isfinding it difficult to make both theends meet; raising her children

properly and educating them isturning out to be an uphill task because of the rising prices. Their standard of living has suffered andthis has had a negative impact onher level of motivation as well. Sheis hoping that the scenario willchange very soon so that her earnings will increase and her vision of making her enterprisemuch bigger would come true.

(Contributed by Sahayata Microfinance Pvt. Ltd.)



March, 201110

The general borrowers in respectof MFI in West Bengal are facingtremendous fund problem. Thesituation is also the same in case of our organization. The borrowers

are getting much less fund thantheir requirement. One of our client Namita Roy , a 37 years oldwoman in our Doltala branchunder SHG: LISA had establisheda grocery six years ago. Due to

present si tuation she wascompelled to sell her shop and isnow running hand to mouth.

(Contributed by Sahara UtsargaWelfare Society.)

Baby’s husband sells vegetable onthe footpath and is able to get Rs.200to Rs 250 per day. Such a meagreearning is not enough to meet the

basic necessities of Baby’s family

which includes two children who arestudying. They plan to buy a go-cartso that Baby and her husband can gofrom one place to another and sell thevegetables. Such a mobile vendingcan help them to increase their ea rn ing s l igh t ly above thesubsistence level as they wish tocontinue the education of their children and do not see themdropping out of school. The go-cart

will cost around Rs. 18,000/- andunless they get the loan from ESAFthey have no other means to haveaccess to any other finance. Thewhole family’s hope for a better living

now rests on the credit they will getfrom ESAF and as the loan is gettingdelayed their hopes too are on theverge of collapse.

(Contributed by ESAF Microfinanceand Investments Pvt Ltd.)

Need for reinventing theSHG based microfinance model

Microfinance FocusMarch 18, 2011

he National Microfinance

Conference 2011 organisedby Sa-Dhan and FICCIcontinued its deliberations on theissues facing the microfinance sector on the second day. Keeping with thisyear’s theme of “Re-engineeringmicrofinance: Need for newproducts and policies” the issuesfacing the SHG model and the needfor reinventing the Self Help Groups(SHG) model were discussed indetail. Participants pointed out thatinterference of the subsidy driven

programmes of the government andthe apathy of the banks towards theSHGs are among the important issuesfacing the SHG model. “per capitaloan from banks to SHG members istoo low,” said Mr LH ManjunathExcecutive Director SKDRP. Changes in the government policies,simplifying record keeping with thehelp of technology and capacity building of the groups as well as their federations were some of the

solutions proposed for improving theSHG model. Dr S L Kumbhare,CGM, NABARD underscored the

T

need for improving quality of SHGs andsaid “matured and successful SHGs can be utilized for promoting new SHGs”.He also mentioned the need to treatmatured and new SHGs differently.

Self regulation has been proposed to bean effective tool for bridging theexpectation gaps and managingreputation risk for the microfinancesector. Mr R Prabha, Advisor-Sa-Dhan, presented the framework of self regulation and the code of conduct promulgated by Sa-dhan and shared thework which it is undertaking to ensurecompliance to its code. Prof DavidGibbons - chairman of CashporMicrocredit said “self regulation is

meaningless unless there is anindependent assessment and penaltiesfor not adhering to the code of conduct”.He also shared his observations fromthe code of conduct complianceassessments COCA on CASHPOR carried out by M2i Consulting on behalf of SIDBI.

One of the panels in the conference feltthat the state should help in creatinginfrastructure that empowers the poor.Credit information bureaus that allow

the worthy borrowers to access credit isan example of an empoweringinfrastructure. Mr Mathew Titus,

Executive Director, Sa-Dhan further added that infrastructure also needs to bedeveloped for improving the skill sets of the operating staff in microfinance aswell as for supervising even small andregional MFIs.

The post lunch discussions on “Smartregulation, creating policies that work”emphasized upon the need for regulations to support the financialinclusion efforts of microfinanceinstitutions. Speaking on the panel, MrBaijayanta Panda, Member of Parliament said “heavy handedregulation is not only not good for thesector but also not good for the country”.A need for a uniform legal framework for

microfinance was expressed by this panel.

In the concluding discussions, the panelists answered questions whichrelated to the emerging regulatoryscenario in microfinance. Ms JayashreeVyas, Chairperson, Sa-Dhan, called for the support of all the stakeholders for making the Year 2011-12, the financialliteracy year for the poor. Speaking in therole of microfinance in financialinclusion, she said, “We are going to

grow and grow not because we want togrow but because there are many whoneed to be pulled out of poverty”.



March, 2011 11

ESAF to impart tech life skills to SHG

members in TN, Kerala

E

BS Reporter March 09, 2011Chennai/ Kochi:

SAF, a microfinance agency based in Kochi, has been selected as the implementing partner for the project Sanchar Sakthi scheme in Kerala and Tamil Nadu along with Sasken Communication andTechnology group. Sanchar Sakthi project was launched by President Pratibha Patil in New

Delhi. It is a programme under the Department of Telecom’s Universal Service Obligation Fund to promotelife skills related to mobile value-added services and Information Communication Technology (ICT) for

women SHG members in rural India.In the Vyaparsewa project, which is part of Sanchar Sakthi, products of SHGs in Tamil Nadu and Kerala will

be marketed with the help of NGOs in Delhi. The products include food products like pickles, honey, andmedicinal products. ESAF has now signed an MoU with Jharcraft (Jharkhand Silk, Textile & HandicraftDevelopment Corporation Limited), for working together in training, value-addition and promoting craft andrelated activities in Santhal Pargana region of Jharkhand. The MoU was signed between Dhirendra Kumar,managing director, Jharcraft, and K Paul Thomas, executive director, ESAF.

ESAF will also implement various social security schemes for the 200,000 artisans of Jharcraft in Jharkhand.A plan is on the anvil for developing at least seven craft clusters in the next financial year and to train more than2,000 artisans in various crafts. These programmes will be supported by the government of Jharkhand throughJharcraft, and by Nabard,according to a release

M S SriramBusiness standard

2 March, 2011

s the debate on the futureo f m i c r o f i n a n c econtinues, it is worth

examining the Reserve Bank of India’s (RBI’s) own discoursefrom 1998 onwards. This is

particularly relevant after theEconomic Survey tabled onFebruary 26 and the Budget

speech both make positivereferences to microfinance as being an important part of the

A

inclusion agenda. Contrary to whatwe are led to believe – that

microcredit grew on its own andRBI stepped in at this stage to takenote of the current practices – RBI

played a crucial and catalytic role inthe development of microcredit byencouraging and prodding banks tolend to micro-finance institutions(MFIs).

In 1998, MFIs had made earlyforays and the practitioners hadasked for a policy framework. In

response, the National Bank for Agriculture and Rural Development(Nabard) set up a task force on

Supportive Policy and RegulatoryFramework for Microfinance in the

late 1998. This task force foundmicrofinance an emerging activity to

be nurtured. It was ahead of its timesin calling for registration, andregulation through a self-regulatoryorganisation (SRO). Pending anSRO, the task force recommendedthat RBI should put an interimregulatory framework. At the sametime, Sa-Dhan, the associationrepresent ing diverse non-

governmental and private sectorplayers in microfinance, wases t ab l i shed . Sa - Dhan was

M S Sriram: Microfinance policy -Rewind or Turnaround?RBI?s role in giving MFIs policy support was remarkable, but an appropriate regulatory framework for thesector is long overdue



March, 201112

expected to evolve as the voiceof the industry and an SRO.

This task force had a profoundand simultaneous impact on

policy making. In April 1999, theword microcredit was used for the first time in the credit policy,months after the task force wasset up, but ahead of its report(October 1999). The statementsaid, “Micro-credit Institutions… are important vehicles for delivery of credit to self-employed persons, particularlywomen in rural and semi-urbanareas.”And further: “A specialcell … is being set up in RBI inorder to liaise with Nabard andmicrocredit institutions for augmenting the flow of credit tothis sector. The time frame for the cell … will be one year andits proposals will be given thehighest attention.”

The credit policy (and anotification in April 1999) drew

a distinction between small loansgiven by banks (with a ceiling oninterest rates) and the loansgiven to MFIs for on-lending(without a ceiling). Thisnotification created a two-wayincentive for the commercial

banks:

l to abdicate (to the extent possible) their own work of reaching out to the

poor;

l to advance bulk loans toMFIs with no ceilings.

The banks did not have a level playing field, but were possiblyhappy to outsource small creditto MFIs. This opened bank finance to the MFIs, who werelargely dependent on donor money.

The task force submitted its

report in time for the mid-termreview of the credit policy. RBIshowed remarkable alacrity ina c k n o w l e d g i n g t h erecommendations. The review

said, “The recommendations made by the Task Force are being‘processed’ by Nabard inconsultation with RBI andGovernment as appropriate.” Therecommendations of the task forcewere already creeping into the

policy much before “processing”,which was unlike the usual policy-making protocol of putting thereport in the public domain,

encouraging deliberations andincorporating feedback to convertrecommendations into actions. Themid-term review reiterated theimportance of MFIs and asked

banks to include microcredit intheir corporate strategy to bereviewed on a quarterly basis. Adetailed notification of February2000 made six significant points:

l No interest cap on loans toMFIs and their loans toclients.

l Freedom to banks tofo rmula te the i r ownmodel/conduit/intermediar y f o r e x t e n d i n gmicrocredit.

l No criteria for selectingMFIs.

l

Banks to formulate their own lending norms.

l Banks to formulate asimple system, minimum

p r o c e d u r e s a n dd o c u m e n t a t i o n f o r augmenting flow of credit

b y r e m o v i n g a l loperational irritants.

l B a n k s t o i n c l u d emicrocredit at the branch,

block, district and state

credit plans with quarterly progress to be reported toRBI.

The fact is that RBI gave policy

support without an appropriateregula tory f ramework. Thenotification defining microcredit isstark: “The provision of thrift, creditand other financial services and

products of very small amount to the poor in rural, semi-urban and urbanareas for enabling them to raise their income levels and improve livingstandards. Micro Credit institutionsare those which provide these

facilities.” We do not know if it wasa deliberate attempt to keep thisvague by leaving out amounts or incomes. However, the regulatorydiscourse was just about opening upanother channel of financialservices.

Even as the somewhat regressiveMalegam committee report is beingdiscussed, RBI, on February 14,released a master circular on

microcredit which refers to itshistorical circulars, with littleaddition: “A joint fact-findingmission looked at the issues

plaguing the microcredit sector andends with saying that findings were

brought to the notice of the banks toenable them to take necessarycorrective action where required.”

In the current circumstances, thefinance minister has made a bold

and affirmative statement in therecent Budget. He has also thrownin some money for an IndiaMicrofinance Equity Fund. Thisaugurs well for the MFI sector — showing policy continuity rather than policy turnaround based onMalegam’s recommendations.Otherwise we would only be able tosay microcredit had a bright future

behind it, not ahead of it.



March, 2011 13

Some self-help - and tribal women mean businessSify.com

March 26, 2011Banswara (Rajasthan:

hey set out to work in their ‘offices’, dabble

in numbers with ease and bring home more

money than their husbands. The fact that

they are illiterate tribal women in obscure

Rajasthan villages does not dampen their

shimmering entrepreneurial dreams. It all started

with the coming together of some women who

formed self-help groups (SHGs). Now the self-help

movement is an over 1,000- strong army with a

presence in 24 villages in Banswara district’s

Sednani area. These women sell seeds, own

poultry businesses, make incense sticks and beauty

products, besides doing conventional sewing and

stitching activities. They gather at ‘chaupals’ to

hold meetings.

After being subservient to their husbands and

lending a helping hand in labour work all their lives,

these women in Banswara district are breaking the

glass ceiling and ushering in prosperity in the area.

‘Some NGOs working for tribal women’s

development had called a meeting here to float the

idea of self-help groups a few months ago. But

when our families came to know that women will

go out and be involved in earning money, they

protested,’ Rampyari Devi, a woman associated

with SHG Navjyoti, told IANS.

The first meeting was attended by the women’s

family members. ‘Somehow, the men were

convinced. After that, like a revolution, women

started joining self help groups,’ she added. The

group has set up poultry farms and supply chicken

products. These groups are democratically formed

Tand elect their own leaders. The modus operandi isthat women pool in their small savings, and then use

it among themselves. Another woman, Likhma

Devi, says, ‘The women are now earning about Rs.6,

000-7,000 every month, which in most cases is more

than what men in the area earn.’ She says about 80

women have so far gone to state capital Jaipur to

acquire training in various fields. Different

government departments and NGOs are providing

training to these SHGs.

Rampyari, who is part of an SHG, said with money

coming in, the lifestyle of villagers has started to

change. ‘Earlier things like television sets were

available in very few houses...now a lot of houses in

my village have TVs and that too with satellite

receivers,’ she added with pride. The migration of

tribal families from the area has also stopped due to

their improved standard of living. ‘Earlier, tribal

families had to migrate to other parts of the state andnearby states like Gujarat for a particular period

every year. But this has stopped now, due to which

children are getting steady education,’ said Sukanya

Joshi, an NGO worker. Likhma Devi echoes

similar views. ‘My life has changed...I am illiterate

but after I started to earn money I started sending my

children to school,’ she said.

There are 21 SHGs in the district, some 550 km from

Jaipur. The groups have been named after femaledeities of Hindu religion like Parvati and Saraswati

and Bharatmata. ‘The tribal women, most of them

illiterate, run them like corporate houses. They have

learnt skills, including auditing and accounting

required for running the business. Most of the

products are sold in urban or semi-urban areas

besides for local consumption,’ Joshi added.



Options for low-income households

March, 201114

Rajat Bansal

The Hindu Business line30 March 2011

part from investment products that helpthem achieve medium to long-term goals,low-income investors need advisors who

can highlight the risks to their portfolio. A definingcharacteristic of the finances of low-incomehouseholds is the irregularity and seasonality of cash-flows, and the generally small surplus. Yieldsfrom agriculture and livestock — the main

occupations in rural households — vary dependingon such factors as water availability, seasonality anddisease incidence.

As households have to manage expenses withunpredictable income streams, they need to savewhen there is surplus, so they can cover the deficitover the rest of the year. There are conflictingdemands on this small surplus, making liquiditymanagement crucial for low-earning households.The mechanisms currently available for them

A

include savings, at home or in no-frills bank

accounts, and short-term borrowings frommicrofinance institutions, self-help groupsor informal sources.

There is clearly a need to improve access toliquidity management mechanisms that areconvenient and inf la t ion-protected.Innovations such as reducing minimuminvestment sizes in money market mutualfunds and making them available througheasily reachable distribution channels can

increase access to such products significantly.In addi t ion to shor t - term l iquidi tymanagement, low-income households alsohave goals such as the wedding or education of a daughter or son (in the medium-term) or maintaining a certain standard of living post the

productive years of the bread-winner’s life(long-term). Meeting these lumpy goal-relatedexpenses calls for an appropriate investmentstrategy. The household must have anappropriate portfolio of investments that

THE HINDU Old-age security is crucial for low-income households as labourers may not find much work after they are 50, or so.



March, 2011 15

should provide long-term positive real returns andcapital protection.

No inflation protection

Key challenges in the investment strategies of low-income households include concentration in a few

physical assets such as agricultural land and gold;high degree of correlation in returns from assets andhuman capital; and inadequate inflation protection.A low-income household in rural India typically hasassets and income sources — land and livestock — concentrated in the local economy. Human capital,which is essentially the income-generating capacityof members of the household, is often the principal

asset owned. Usually, the source of income for thehousehold is agriculture-based, or small retail in thelocal area. Clearly, these are assets exposed to localepisodes, such as floods, and this correlation willhurt them in bad times. During floods, the wagelabour availability and income from agriculture isimpacted, along with a decline in the value of agricultural land — thus, the household suffers adouble whammy. This is conceptually similar to theflaw in a software company employee investing allher surplus in the stocks of that company.

A basic principle of sound investing is to diversify asmuch risk as possible, by investing in various assetclasses, whose returns are uncorrelated with eachother. There is thus a clear need for such householdsto reduce exposure in the local economy and invest infinancial assets that are not linked with the localeconomy. Investment products must be customisedto enable such households to manage unpredictableand erratic cash-flows. In its absence, several low-income households choose to invest in gold, which is

held over the medium to long term.

From a return perspective, a better investmentavenue for the household would be an index fund(that replicates the movements of an index in aspecified financial market), which yields higher return than gold, even over longer periods.Investments in equity through index funds, over longer periods, can generate long-term positive realreturns with low volatility and lower costs.

Pension products

Old-age security is particularly crucial for low-incomehouseholds. A wage labourer is unlikely to find work

opportunities after the age of 50 or so. Managinghousehold expenses, planned and unplanned, for therest of his life is a daunting challenge. There is a need todesign products to specifically meet this objective. Asuccessful product design in this category is the NPS-Lite — pension product specifically designed for low-income households in the informal sector — launched

by the Pension Fund Regulatory and DevelopmentAuthority (PFRDA).

A defined contribution plan, it allows small transaction

sizes with no lower limit to deposit in the account.Withdrawals are allowed only when the customer crosses 50, thus encouraging long-term savings. Thescheme also considers change of location due to newemployment or residence, and ensures portability of accounts. At the back end, the fund is managed bymainstream asset management companies, whichinvest in the debt and equity markets. The assetallocation balances growth and safety objectivesappropriately. The choice of the fund manager restswith the customer; and cost of servicing is low for

service providers.

Complexity

However, providing households access to the right products is only half the job done. These products maynot be effective, or may even expose households tofurther risks, if the customer is intimidated by thecomplexity of the product and hence chooses not toaccess them. The mere existence of 3,000 mutual fundsunder various schemes can be daunting for a person to

choose from. Therefore, there is clear need for a client-facing entity which highlights the risks associated withthese investments and provides sound advice tocustomers on optimum allocation of assets in their

portfolio. This is critical from the perspective of thecustomer placing trust in the service provider since heor she is taking a risk by investing money with theentity concerned. The service provider must be heldliable for appropriate product guidance so that there isno scope for mis-sale.



Sa-Dhan, 12 & 13, Second Floor, MPTCD Building, Special Institutional Area

l Programme in Strategic Approaches for Improving Human Resource

Productivity, 16-19 May 2011, conducted by NIBM

l Credit Management Programme, 16-20 May 2011, conducted by NIBM

l Training of Trainers Programme on Financing MSMEs, 23 – 27 May

2011, Conducted by CAB, Pune

l Effective Managerial Communication, 30th May to 4th June 2011,

Conducted by IRMA

micro finance indian scenario

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