www.brac.net

BRAC Microfinance Programme

www.brac.net

Dabi

• Average Loan Size - $225

• Loan Term – 1 year

• Repayment Mechanism – Equal weekly/monthly installments

• More than 97% of borrowers are women who are serviced in groups, but there is no joint liability obligation

• Loans are mostly used for small operations in poultry, livestock, vegetable cultivation, handicrafts and rural trade

www.brac.net

www.brac.net

Progoti

• Average Loan Size – $2,050

• Loan Term – 12/18 months

• Repayment Mechanism – Equal monthly installments

• Borrowers are individually catered and the loans are typically used to finance working capital for shops, agricultural businesses and small manufacturing

www.brac.net

www.brac.net

Top-up Loans

• Introduced in 2010 for both Dabi and Progoti borrowers to provide greater flexibility

• Allows borrowers with good repayment behaviour to top-up an existing loan

• Available to borrowers who have repaid at least 50% of the existing loan on time

• Maximum top-up amount is 50% of original disbursed amount

www.brac.net

Migration Loan

• Targets people migrating overseas for work

• Covers cost of obtaining work overseas (recruiter fees), travel and travel document costs

• Average Loan Size - $1,915

• Repayment Mechanism – 12/18 unequal monthly installments.

• Till date – $34.5m have been disbursed to 18,000 migrant workers.

www.brac.net

www.brac.net

Dabi53%

Progoti44%

Migration Loan3%

Portfolio Distribution:

Dabi94%

Progoti5% Migration Loan

0%

Borrower Distribution:

www.brac.net

Savings

• Regular Passbook Savings

• Monthly Deposit Scheme

• Double Deposit Scheme

• Fixed Deposit Scheme

www.brac.net

Passbook Sav-ings:71%

DPS:11%

Double De-

posit:17%

Fixed Deposit:0%

Savings Distribution:

Passbook Sav-ings:90%

DPS:8%

Double Deposit:2%

Fixed Deposit:0%

Saver Distribution:

www.brac.net

BRAC Microfinance at a Glance Bangladesh

ParticularsAs of October

2012

Loan Portfolio: $ 715 million

Savings: $ 286 million

Members: 6.02 million

Borrowers: 4.42 million

Average Monthly Disbursement: $ 103.7 million

Staff: 17,988

www.brac.net

De-posits43%

Equity29%

Bor-rowing

28%

Sources of Fund

www.brac.net

Industry Position (As of October 2012)

Particulars BRAC ASAGrameen

Bank BURO

BangladeshPortfolio: (Million)

$ 715 $ 683 $ 973 $ 113

Savings: (Million)

$ 286 $ 188 $ 1,441 $ 36

Borrowers: (Million)

4.42 4.27 6.61 0.86

Branch Offices:

2,359 3,047 2,567 629

www.brac.net

Human Resource Management

Set up an internal HR unit that is working to:– Standardize performance assessments

– Improve talent identification and management through setting up a management pipeline

– Improve workplace environment

– Mentor new female staff

– Improve grievance management practices

www.brac.net

Capacity Development

• Much greater investment in training of staff

• Shift in focus from technical to managerial skills training

• More emphasis on soft skills development of staff at all levels

• Greater coordination between performance assessment, talent management and training

www.brac.net

Strengthening Internal Controls

• Branch accounts staff separated from microfinance and placed under Finance and Accounts Division in late 2009

• Strengthened the monitoring units to ensure more regular and thorough monitoring of branches

• Comprehensive branch reviews carried out by independent teams to look at qualitative aspects

• For the worst performing branches, we have started a system of independent loan adjudicators who verify and approve every loan prior to disbursement

www.brac.net

Financial Literacy and Consumer Protection

• Working with BRAC Development Institute to design and implement financial literacy projects

– Piloting basic financial literacy awareness building through popular theatre

– Working with a social communication agency to design mass media outreach programmes

• Adopted an employee code of conduct

• Working to improve the quality of staff-client interface

www.brac.net

Trend: BRAC MicrofinanceBangladesh

Particulars 2009 2010 20112012

(October)Portfolio: (Million)

$ 537 $ 534 $ 644 $ 715

Savings: (Million)

$ 224 $ 243 $ 272 $ 286

Disbursement: (Million)

$ 922 $ 899 $ 1,052 $ 1,037

PAR (>30 days)

9.9% 10.3% 7.9% 6.9%

Operating Self Sufficiency

116.4% 118.6% 110.8% 128.0%

www.brac.net

BRAC International Microfinance at a Glance

CountryPortfolio

(Million)Members Borrowers

Avg. Monthly

Disbursement

(Million)

Branch

Offices

Pakistan $ 9.18 87,528 77,927 $ 1.53 96

Sri Lanka $ 8.71 108,181 62,973 $ 1.57 89

Tanzania $ 20.46 136,278 108,238 $ 3.94 112

Uganda $ 19.36 156,286 124,306 $ 3.61 130

Sierra Leone $ 2.69 25,807 21,521 $ 0.41 43

Liberia $ 3.18 32,625 23,391 $ 0.53 30

www.brac.net

Priorities in 2013

• Bangladesh

– Scale up financial literacy and consumer protection projects

– Pilot savings collection through mobile money platforms

• International

– Focus on strengthening capacity of staff at all levels

– Reducing the dependence on Bangladeshi staff and accelerate promotion of national staff into management positions

– Strengthen internal controls

www.brac.net

Thank You