To maximize financial well being of every individual and every enterprise by providing complete financial services in the remote rural parts of Ganjam and Khurda Districts.

Customer Speaks

Gitanjali Maharana (Badakushastali)

The investment product of Dhanei KGFS is very affordable for the rural people since to open a similar investment facility in other financial services institution we require at least Rs 500.00 while this can be done by investing Rs 1.00 in Dhanei KGFS. This helps rural people to avail such a facility. The investment account is flexible and convenient to redeem during the time of requirement

Also the Personal Accident Insurance product for just Rs 10.00 (sum assured Rs. 25,000) is very much suitable for the rural people. For this, we are grateful to the employees of Dhanei KGFS and we expect more such products in future.

Our Thoughts

We had started with a crawl but are up and about into a high-paced marathon. From just one branch and a fifteen-strong team, now we have eight branches and our team strength stands at 67. The journey has thrown at us many challenges and opportunities as well. We have successfully braved the challenges and grabbed the opportunities. In the process there have been valuable lessons learnt and goals achieved. In between all the excitement and tribulations, we have always remained focused on our mission. To cite an example, keeping the customers’ requirement in mind, we have changed the branch opening timing, which now opens at 0600 hours instead of 0900 hours and closes, as previously, at 1800 hours. Thus, our customers have three additional hours to avail our services. Meanwhile, forty branch locations which match our remote rural criteria have been finalized. The infrastructure team is working overtime to set up branches at these locations. Recruitment and training has been one of our focus areas. We have recruited 50 plus employees and provided rigorous training to match up to our standards. We also launched two more products and implemented few major changes in our processes. Incidentally, we have also crossed the two crore mark in portfolio outstanding. But as they say, it is only the beginning…………

“Our greatest glory is not in ever falling but in rising every time we fall”: Confucius

The Dhanei Team marches ahead with a vision and full commitment to achieve our mission.

Mission

Customer Speaks

Asha Kirana Quarterly Newsletter | Volume 1 - Issue 2 | December- 2009

Journey So Far

Since the publication of the last edition of the Quarterly newsletter, we have covered quite a bit distance. Lot of progress has been made in surveying five more blocks for locating branches. Three more products have been launched to meet the requirements of our customers. A new version of the CMS was also launched and the processes have started showing signs of perfection. We inaugurated three more branches as well. HR front saw hectic activity in terms of three more round of recruitment and subsequent training. Internal audit was also conducted twice and all shortcomings noticed were plugged. Details of the various activities are enumerated below.

Survey and Branch Roll out:

Forty more branch locations have been identified in the eight blocks surveyed so far satisfying the remote rural criteria. One intern and two of our managers did commendable job in executing this arduous task. The blocks covered so far are Rangeilunda, Chatrapur, Hinjilikatu, Kukudakhandi, Purusottampur, Digapahandi, Chikiti and Ganjam. These branches cover around 300 villages. We plan to continue with our survey work in the rest of the 14 blocks from Jan 2010 onwards.

Balipada Branch The WMs of Balipada Branch- Siba, Subrat and Sukanta with a customer, Mr Ranjan Patro

Sasana Ambagaon Branch

Sukanta, WM explaining our products to the customers

Kanchudu Branch

Anil with the Dhanei Team of Kanchudu Branch

Anil interacting with a customer in Kanchudu Branch

Gandala Branch Gandala Branch being inaugurated

Purna Chandra Sahu, WM interacting with the customers

Infrastructure:

Infrastructure continues to be the fore most daunting challenge. Getting a suitable accommodation and furnishing these to our requirement still remains a bottle neck. Internet connectivity at many places is still not available. Though BSNL is present in the remote locations of this geography, getting a land line with broad band internet is not feasible in many areas. To resolve this issue we have deployed VSAT connections at some locations.

Product:

Since publication of the last edition of our newsletter, we have rolled out three more products with additional product is in the pipeline. The new products are Retailer Loan, Micro Variable SIP and Individual Loan (pilot phase). We are in the process of launching Emergency Loan and Group Term Life Insurance in our geography soon. The Emergency Loan will be in pilot phase and will be available to the customers 24x7 for catering to their contingency requirements.

Process:

With indefatigable effort by the Process team, the various processes have started to stabilize. Due to non availability of high speed internet at various places, we rolled out the offline mode version of CMS and at present this can be used for enrollment only. In addition, we have set up a back up team in the HO (which will subsequently move to the hub) for processing the Smart Card personalization process, customer addition, PAN application processing, GEFU upload etc.

Recruitment and Training:

Since July we have recruited three batches of WMs from Ganjam district. The response to the advertisement in the local newspaper has been overwhelming. We have received around 300 to 350 CVs for the post of WM. This is very encouraging for the whole of the Dhanei Team as our work in the rural areas has started getting recognition. These three batches have been trained by our training team here in Berhampur and the quality of these new recruits has been good. The total team strength as on 9 Dec 09 stands at 67.

Examination in progress The candidates queuing up

Learning

1. Business Volume.

Event: On 25th September 09 we had to disburse 10 JLG groups (because Dushera, a major festival here was approaching) in Hugulapatta branch along with more than 100 PAI and 50 MMMFs accounts. Our WMs were not experienced enough to handle such business volume in a given day and hence committed some mistakes. The cash did not tally at the end of the day and the back office team had to work till mid night to trace the error. This was done under tremendous pressure from IT service provider to hand over the system for the EOD activities. So we decided to evenly distribute the business and not to take high business pressure in a given day when demand is on the peak.

Learning: Each branch should not handle more than five to six JLG groups and other products per day.

2. Communication to the Field.

Event: One of our colleagues had a doubt about whether to take left thumb impression or right thumb impression for illiterate borrowers. He communicated to the WMs that they need to take right hand thumb impression. In the process we lost uniformity and in some way violated the operations manual. We noticed this immediately and communicated to the entire team that no one should change any process unless the same is communicated from CEO/COO.

Learning: Only CEO/COO to communicate to the field in matters involving process changes.

3. Customer Needs. Event: Earlier we had issued a large pass sheets to our customers to record their transactions. However the customers complained that in the process of bringing the card to the branch for transaction others noticed the same. This was not appreciated by the customers since they do not want others to know of their transactions with Dhanei KGFS and thus, resulted in violation of privacy. Learning: Like Urban customers rural customers are also sensitive to privacy in their financial transactions. We have changed the format of the pass sheet. We are issuing a pocket sized pass book which meets the above requirement and is convenient to carry.

4. Technology.

Event: In order to map the house locations of our customers, we tried to locate the same on the Google map by capturing the coordinates of the households by a GPS Tracker. However while carrying out trials we realized that the accuracy of the GPS Tracker is within 10 meters of the exact coordinate. In Ganjam district the houses are located very close to each other and thus, the GPS tracker system did not work.

Learning: We need to try some other technology to map the houses of customers.

Ganjam Special: Coastal fishery- A gift of nature to Ganjam district

Fishery has been a traditional occupation of the coastal inhabitants of Orissa. For generations, the dependence of the fisherman community on the marine resources has been complete. Fisheries provide a vital source of food, employment, recreation, trade and economic well being for people throughout the coastal districts of the state.

Ganjam district is having a coastline of 60 km and having 26 fishing villages and 14 fish landing centres (Landing

centre are the points where the fisherman anchor their craft, unload their catch and conduct sale). Such centres are available at Gopalpur, Arjipalli, Bakshipalli, Nuogoraband, Patisunapur, Dighipalli, Katuru, Sabilla. About 20,000 fishermen population is dependent on In-land, Brackish Water and Marine fisheries in Ganjam district. The total fish catch of Ganjam district is 14053.22 MT. (As per 2004 data). Traditional fishing with catamarans and the country boat is a common parlance in normally all the villages but the new technology is on the rise in the bigger landing centres.

The fisheries from the coast line of Ganjam district provide important contribution to the state economy. Fish product either raw, live or processed has been a significant contributor to the state exchequer. The export of brackish water prawn, marine fishes of economic values like Ribbion fish, Cuttle fish, live crabs, etc has fetched substantial foreign exchange for the state. Besides, fishery as an industry is a source of livelihood. Subsidiary industries like dry fish product, value added products like fish pickle, fish cutlets, fish powder, etc has in its own way contributed to the economic growth of the state.

The peak season for fishing in the district normally in all the coastal villages ranges from October to February. The important varieties of catch are the Prawns, Pomfrets, Clupeids, Catfish, Carangids, Perches, Seerfish, Mackerals, Sardines and Sharks.

Traditional craft with motorized engines dominate the trade. The motorized boats are fewer in number as compared to their non-motorized counterparts. The trawlers and other bigger fishing gears are absent in Ganjam district. In Ganjam district, 85% of the crafts are traditional crafts, which include catamarans and country boats and the rest 15% are the motorized country boats. No small trawlers or the big fishing craft is reportedly operating from the district.

Net is one of the most important fishing gears used to catch fish. The nets have been used traditionally and practiced in Ganjam districts. Traditionally the nets used were hand made using cotton threads whereas now (approximately since last two decades) there is a clear shift to the nylon fibre branded nets, which are available in the local market. The fishing net is one of the major capital investments in the fishing operation and may range from Rs. 10,000 to Rs. 1, 50,000. The nets used for fishing are species specific and a fisherman normally keeps 2-3 nets for making the catch.

The use of net is also season specific due to the abundance of various species in a particular season. The normal life

of a net is 5-7 years but again it depends on the usage, quality of fiber used, type of net etc.

From Dhanei KGFS we are trying to help the fisherman community by extending credit for their consumption, nets and gears financing need. Our Deegipur branch is located right in the centre of 2-3 fisherman villages. We are planning to open our branches in other villages where the primary source of livelihood of people is fishing. Such branches are likely to be located in Arjipalli, Indrakshi and Tulu. Going forward, NE can help in a big way to the fisherman community by improving the supply chain and modern technological interventions. (Source: Preliminary interaction with fisherman community, Ganjam.nic website, OXFAM survey report) Snap Shot: Few of the vital statistics of Dhanei KGFS:-

Technology Corner:

In order to take the photograph of a customer during enrollment with the web camera, we were using a 150 Watt focus light. This light was very glaring and used to consume lot of energy unnecessarily. In addition, it used to add to the room temperature of the branch which is very hot during the summer months. Therefore, we have changed the present light source with a CFL bulb of 11 Watt power. This resolved all the above problems.

No of branches: 8 No of employees: 67 No of customers: 3366 Total portfolio: 1354/Rs 2, 03, 21,750.00

JL: 289/ Rs 30, 06,750.00 JLG: 895/ Rs 1, 29, 63,000.00 RL: 161/ Rs 39, 52,000.00 IL: 9/ Rs 4, 00,000.00 MMMF: 1199 PAI: 2139

Old Focus light for capturing customers’

picture in the web camera (top view)

New focus light of CFL tube with the stand (web camera is placed on top of the stand). The old lamp can be seen in the background.

WMs Speaks: Rabada Santosh

“I started my professional carrier with conducting tutorial classes in my native village. After this assignment, I worked as a clerk in one of the English medium schools. In these two assignments, I learnt very less and my growth was not significant. Upon joining Dhanei KGFS, I got a phenomenal growth in my carrier. I learnt many new and useful things like various products and processes, Flexcube, CMS etc. I also learnt how to interact

with the customers and how to assess their financial well being. My personality has also taken a very positive change in that I learnt to be punctual, dress up properly as a professional and other behavioral skills. I also like the environment where we help each other, especially the senior management takes personal care of us to improve ourselves and discharge our duties properly. I am really happy to have joined Dhanei KGFS.” – Mr Rabada Santosh, WM, Deegipur Branch.

Case Study

Recently our field staff wrote a number of case studies bringing out the impact we have made in lives of a few of our customers. One of the case studies is given below.

Careful planner

Jayanti Behera, 33, grocery shop owner, Badakushastali village

Seven years back when Jayanti Behera started a business venture for the first time in her life, a grocery shop, she learnt a lesson she will never forget. Eager to please and entice customers, she extended credit liberally. The dues mounted, and payments didn’t come in. Eventually, she recalls, she had bad debt of Rs 70,000. That’s when she decided enough was enough. Since then Jayanti has been insisting on immediate cash payment from the customers.

It doesn’t worry her that there are six other small grocery shops in her

village which has a population of around 3500. As a member of SC group, she lives with her husband and three minor children in a locality largely

populated by SC households, and hers is the only grocery shop in that locality. She stocks vegetables, soap, stationery, oil, rice, dal and other items of daily household use. Business is good and assured. Early in 2009, she took a business loan of Rs 16,000 from DKGFS and prepaid it within six months, so that she could take another loan—for Rs 23,000. The money was used to increase inventory. With more goods to sell income has increased. Daily net earnings on some days touch Rs 400, she reports. Average net monthly income is Rs 4000 to Rs 6000.

Her husband, who is a marble mason, generally earns much less—Rs 150 a day, for around 20 days a month, or Rs 2000 to Rs 3000 a month. He cycles to the nearby town of Berhampur every day to seek work, carrying lunch and returns late in the night to home.

The family has no agriculture land, and has no intentions of acquiring any. Instead, they have invested in a variety of financial products. They have a life insurance policy, an accident insurance policy, and save Rs 2100 a month in a scheme of a private investment company, whose agent comes home and collects the money. Additionally, they are investing in a recurring monthly deposit scheme of the same private company. They give Rs 300 a month, and after six years, when they would have invested a total of Rs 21,600, they would get Rs 30,000. Jayanti is not sure how much that works out to in terms of yield, but feels it is a good investment.

The family spends Rs 125 a month on private tuitions for their sons aged 12, 9 and 6, but Jayanti does not have high ambitions about them. “It will be enough if they study till matriculation.” Highly qualified children of their relatives have not been able to get jobs, she points out. Her children could do business like her, she says.

Jayanti Behera

Jayanti’s grocery shop housed in a wooden stall was first located at some distance from her house. Fearing theft she shifted the stall to its current location which near her house. The next step planned by her for 2010 is to extend their three-room house and shift the shop to the extended front portion.

She estimates the extension will cost Rs 100,000—much more than what Dhanei KGFS can offer under its current product range. Citing low interest and daily repayment facility as the two best features of `Dhanei’ (as DKGFS is known locally), she says, “I will seek as much loan from Dhanei as I can get.” The balance she will borrow from other sources. (There are a number of established MFIs operating in Ganjam district and Jayanti has earlier taken aggregate loans of Rs 99,000 from them, at 36% interest per annum).

The Dhanei Team

Starting from this edition we have decided to introduce our employees. Thus, a section will be devoted for this purpose. This time we are introducing all our staffs who are present with us as on date.

Arun Prasad Sahoo, RM

Manoj Kumar Mahapatra, Manager Infra

INFRA TEAM

DEDICATED DHANEI TEAM

Umasanakr Bishoyi, Infra supervisor

Gopal Misra, Infra supervisor

Account Team

Damodar Sahu, Accounts Manager Tandem

HR Department

Debasis Mohanty, Manager HR, Berhampur

IT TEAM

Dillipa Khuntia, IT Executive 1 Biranchi Mohapatra, IT Executive 2

Kuna Sahu, Backend support

Pinki Rout, Backend support

Santosh Ku. Sahu, Backend support

ARM: Dhanei KGFS

Alok Kumar Maharana, ARM

Pratap Ku. Khuntia, ARM

Jayant Ku. Meher, ARM

Administration Team

Kedarnath Satapathy, Manager Admin Lisha Manjuri Sethy, Admin Associate

Risk Management Team

Rudrasris Pattnaik, Manager Internal Control

Training Dept

Itimayee Pala, Training Manager

Product & Process Dept

Abhijit Subudhi, Manager Product & Process

1st Batch WMs

Arun Kumar Nayak, WM, Badakushastali

Pramoda Pattnaik, WM, Badakushastali

Aswini Jena, WM, Hugulapatta 1 Rabin Raut, WM, Badakushastali

Rabada Santosh, WM, Deegipur

Gopal Krushna Panigrahi, WM, Hugulapatta

3rd Batch WMs

Rajballabha Panda, Jewell appraiser

Khulana Sundari Behera, WM, Deegipur

Subrat Kumar Sahu, WM, Narsinghpur

Sibasankar Panigrahi, WM, Balipada

2nd Batch WMs

4th Batch WMs

Meenakshi Bhattamisro, WM, Balipada

Purna Chandra Acharya, WM, Tanganapalli

Lalit Kumar Jena, WM, Sasan Ambagaon

Ranjan kumar Pattnaik, WM, Sasan Ambagaon

Purna Chandra Sahu, WM, Gandala

Kalaga Karalaiah, WM, Tanganapalli

5th Batch WMs

Manoj Kumar Sahu, WM, Gandala

Manoranjan Pattnaik, WM, Durubandha

Rituraj Parthasarathy, WM, Kanchudu

Satyanarayan Behera, WM, Sidheswar

Sibaram Sahu, WM, Durbandha

A. Sankar Reddy, WM, Gandala

Arun Ku. Sahu, WM, Kanchudu

Tapan Ku. Pathy, WM, Kanchudu

6th Batch WMs

Kalpana Maharana, WM, Tanganapalli

Alok Chandra Tripathy, WM, Narasinghpur

G. Lakshman Rao, WM, Sidheswar

Jitendra Kumar Sahu, WM, Sidheswar

K. Santosh Patro, WM, Narsinghpur

R. Jayaram Pattnayk, WM, Gokarnapur

S. Dibakar Patra, WM, Deegipur

Samrat Keshari Mishra, WM, Narsinghpur

Sukendra Behera, WM, Narsinghpur

Sasmita Sahu WM, Gokarnapur

Chittaranjan Sadangi, WM, Balipada

Narayan Nahak WM, Bhatakumarada

Malaya Ku. Behera WM, Bhatakumarada

K. Gopal Rao WM, Durubandha

Sapan Raj Mohapatra, WM, Bhatakumarada

Pradyumna Kumar Mahapatro, WM, Bhatakumarada

Plot No-1,Servey No-1308/2948 Ananta Nagar 5th Line Berhampur, Ganjam

Pin-760005