THE INDIAN CONTEXT6TH OCTOBER, 2009

ALOK PRASAD

MICROFINANCE BANANA SKINS

Since the last Citi Risk Roundtable

MFIs (FY 2008-2009)

3

MFIs across Tiers FY 2008-2009

4

28 MFI’s received equity (2004-Till Date)Equity – For either Existing Rural MFIs or Startup Urban MFIs.

5

Business Environment/Regulatory Risk

6

Citi Microfinance – September 2009

End Client – Key Risks

7

Citi Microfinance – September 2009

Natural Calamities

Life

Cyc

le E

vent

s

© 2009 Citibank, N.A. All rights reserved. Citi and Arc Design is a service mark of Citigroup Inc., used and registered throughout the world. 8

Liquidity and Funding Risk Equity – For either Existing or Startup Urban MFIs.

9

No. Type Legal MFI Citi Client Focus LEAD INVESTORS

1Existing NBFC SKS Microfinance: Existing Rural Sequoia, Odyssey, SVB, Columbia Capital Llc,Sandstone , Kismet, SVB

2Existing NBFC Asomi Finance: No Rural IFC Aavishkaar,Goodwell India Microfinance Development Co. Ltd.

3Existing NBFC Grameen Financial Services: Existing Rural AIMVCF, Aavishkaar Goodwell

4Existing NBFC Jagannatha Financial Service No Rural Lok Capital Group

5Existing NBFC ESAF NBFC Prospect Rural Dia Vikas Capital

6Existing NBFC Bhartiya Samruddhi Existing Rural Lok, Aavishkaar Goodwell ,Microfinance Development Co. Ltd., SIDBI

7Existing NBFC Navachetna Microfin Services No Rural HNIs

8Existing NBFC Grama Vidiyal Microfinance Existing Rural MicroVest, Unitus Equity, Vinod Khosla

9Existing NBFC BISWA NBFC No Rural Bellwether

10Existing NBFC Share Existing Rural Aavishkar, Legatum

11Existing NBFC Spandana Spoorthy Financial Existing Rural Valiant Capital Partners

12Existing NBFC MAS Financial Services No Urban India Advantage Fund VII (Mezzanine Fund-I)

13Existing NBFC Satin Creditcare Network Prospect Urban Lok Capital Group

14Startup NBFC Ujjivan Financial Services Prospect Urban Bellwether , Dell , AW H., Sequoia , LokCapital,IFIF, Unitus

15Startup NBFC Arohan Financial Services Prospect Urban Lok Capital Group, Michael and Susan Dell Foundation

16Startup NBFC Equitas Micro Finance India Prospect Urban Bellwether , India Financial Inclusion Fund , MVA Ventures

17Startup NBFC Swadhaar FinServe Prospect Urban ACCION, Dell Foundation, Unitus

18Startup NBFC Madura Micro Finance Prospect Urban Unitus Equity Fund

19Startup NBFC Moksha-Yug Access India No Urban Unitus Equity Fund

20Startup NBFC AU Financiers India No Urban India Business Excellence Fund

21Startup NBFC Suryoday Microfinance Prospect Urban Aavishkaar Goodwell

22Startup NBFC Sonata Prospect Urban Bellwether

23Startup NBFC MIMO Prospect Urban Bellwether

24Startup NBFC Sahayta Prospect Urban Bellwether

25Startup NBFC Janalakshmi Prospect Urban Bellwether

26Startup NBFC ParaCap Fin Prospect Urban Bellwether

27Startup NBFC Trident Prospect Urban Bellwether

28Startup NBFC RISE Prospect Urban HNI's