sewa bank performance...
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A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 274
Annexures
SEWA Bank performance :(Source:www.mixmarket.org)
Gross loan portfolio USD, 2008 8.7 million
Number of active borrowers 2008 21,549
Average loan balance per borrower USD, 2008 401.4
Deposits USD, 2008 18.9 million
Total assets USD, 2008 24.9 million
Number of depositors 2008 318,594
Institutional Characteristics
2005 2006 2007 2008
As of date 2006-03-31 2007-03-31 2008-03-31 2009-03-31
Currency USD USD USD USD
Total assets 20,598,219 21,229,453 25,104,036 24,875,925
Offices — — — 30
Personnel 202 217 225 142
Financing Structure
2005 2006 2007 2008
As of date 2006-03-31 2007-03-31 2008-03-31 2009-03-31
Capital/asset ratio 19.14% 18.87% 18.73% 16.42%
Debt to equity ratio 4.23 4.30 4.34 5.09
Deposits to loans — — — 218.53%
Deposits to total assets — — — 75.99%
Gross loan portfolio to total assets 29.78% 32.74% 32.20% 34.77%
Outreach
2005 2006 2007 2008
As of date 2006-03-
31
2007-03-
31
2008-03-
31
2009-03-
31
Currency USD USD USD USD
+ Number of active borrowers 17,677 21,208 21,826 21,549
+ Gender
Female — 17,677 21,208 21,826 21,549
+ Products (credit)
Retail loans — — — — 21,549
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 275
2005 2006 2007 2008
Percent of women borrowers 100.00% 100.00% 100.00% 100.00%
+ Number of outstanding loans — — — 21,549
+ Gender
Female — — — — 21,549
+ Products (credit)
Retail loans — — — — 21,549
+ Gross loan portfolio 6,135,074 6,950,539 8,083,412 8,650,543
+ Methodology
Individual — — — — 7,859,490
Solidarity group — — — — 388,262
Village banking s h g — — — — 402,792
+ Products (credit)
+ Retail loans — — — — 8,650,543
+ Household financing — — — — 2,142,175
Mortgage housing — — — — 2,142,175
Microenterprise — — — — 6,508,369
+ Delinquency
Less than one month — — — — 6,736,679
+ One month or more — 40,532 57,475 769,254 —
From one to three months — — — — 477,981
+ More than three months — — — — —
From three to six months — — — — 294,432
+ More than six months — — — — —
From six to twelve months — — — — 372,179
One year or more — — — — 769,274
Renegotiated loans — — — — 0
+ Gender
Female — — — — 8,650,543
Average loan balance per borrower 347 328 370 401
Average loan balance borrower per
borrower / GNI per capita 46.90% 39.97% 38.98% 42.26%
Average outstanding balance — — — 401
Average outstanding balance / GNI per
capita — — — 42.26%
+ Number of depositors 291,535 304,933 307,558 318,594
+ Products (deposits)
Retail deposits — — — — 318,594
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 276
2005 2006 2007 2008
+ Gender
Male — — — — 727
Female — — — — 317,867
+ Number of deposit accounts — — — 318,594
+ Products (deposits)
Retail deposits — — — — 318,594
+ Gender
Male — — — — 727
Female — — — — 317,867
+ Deposits — — — 18,904,221
+ Gender
Male — — — — 197
Female — — — — 18,904,023
+ Products (deposits)
+ Retail deposits — — — — 18,904,219
+ Voluntary deposits — 14,921,434 15,108,480 18,430,145 18,904,219
Demand deposits — — — — 10,331,339
Time deposits — — — — 8,572,880
Average deposit balance per depositor — — — 59
Average deposit balance per depositor /
GNI per capita — — — 6.00%
Average deposit account balance — — — 59
Average deposit account balance / GNI
per capita — — — 0
Overall Financial Performance
2005 2006 2007 2008
As of date 2006-03-31 2007-03-31 2008-03-31 2009-03-31
USD USD USD USD
Return on assets — 0.44% 0.56% 0.45%
Return on equity — 2.31% 3.00% 2.56%
Operational self sufficiency 107.89% 108.30% 109.30% 105.62%
Revenues
2005 2006 2007 2008
As of date 2006-03-31 2007-03-31 2008-03-31 2009-03-31
USD USD USD USD
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 277
2005 2006 2007 2008
Financial revenue/ assets — 8.66% 10.22% 12.55%
Profit margin 7.31% 7.66% 8.51% 5.32%
Yield on gross portfolio (nominal) — — — 27.72%
Yield on gross portfolio (real) — — — 20.07%
Expenses
2005 2006 2007 2008
As of date 2006-03-31 2007-03-31 2008-03-31 2009-03-31
USD USD USD USD
Total expense/ assets — 8.00% 9.35% 11.88%
Financial expense/ assets — 4.05% 4.37% 4.11%
Provision for loan impairment/ assets — 0.16% 0.06% 0.30%
Operating expense/ assets — 3.79% 4.91% 7.47%
Personnel expense/ assets — — — 2.18%
Administrative expense/ assets — — — 5.29%
Efficiency
2005 2006 2007 2008
As of date 2006-03-31 2007-03-31 2008-03-31 2009-03-31
USD USD USD USD
Operating expense/ loan portfolio — 12.12% 15.14% 22.31%
Personnel expense/ loan portfolio — — — 6.50%
Average salary/ GNI per capita — — — 3.12
Cost per borrower — 41 53 86
Cost per loan — — — —
Productivity
2005 2006 2007 2008
As of date 2006-03-31 2007-03-31 2008-03-31 2009-03-31
Borrowers per staff member 88 98 97 152
Loans per staff member — — — 152
Borrowers per loan officer — — — 10,775
Loans per loan officer — — — 10,775
Depositors per staff member 1,443 1,405 1,367 2,244
Deposit accounts per staff member — — — 2,244
Personnel allocation ratio — — — 1.41%
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 278
Risk and Liquidity
2005 2006 2007 2008
As of date 2006-03-
31
2007-03-
31
2008-03-
31
2009-03-
31
USD USD USD USD
Portfolio at risk > 30 days 0.66% 0.83% 9.52% 22.12%
Portfolio at risk > 90 days — — — 16.60%
Write-off ratio — — — 0.00%
Loan loss rate — — — 0.00%
Risk coverage 1,222.80% 824.30% 68.81% 27.43%
Non-earning liquid assets as a % of total
assets — — — 63.35%
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 279
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 280
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 281
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 282
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 283
SEWA Insurance :
Insurance Schemes Table
Risk Covered Scheme I Scheme II Scheme III
Member's Insurance Annual Pre. 175 F.D. 700
Annual Pre. 375 F.D. 1800
Annual Pre. 250 F.D. -
Natural Death Accidental Death Acc. Death of husband Hospitalization House & assets insurance against, Fire, Flood, Natural calamities.
Rs 10,000 Rs 40,000 Rs 15,000 Up to Rs 2000 Up to Rs 10,000
Rs 30,000 Rs 75,000 Rs - Up to Rs 6,000 Up to Rs 20,000
Rs 30,000 Rs 75,000 Rs 15,000 Up to Rs 2,000 Up to Rs 10,000
Husband's insurance Annual 125 F.D. 1500
Annual 350 F.D. 4000
Annual 225 F.D. -
Natural Death Accidental Death Hospitalization
Rs 10,000 Rs 25,000 Up to Rs 2,000
Rs 30,000 Rs 25,000 Up to Rs 6,000
Rs 30,000 Rs 75,000 Up to Rs 2,000
Total Annual Pre. 300 F.D. 1150
Annual Pre. 725 F.D. 3150
Annual Pre. 250 F.D. -
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 284
Questionnaire for SEWA clients
A. Personal Information:
1. Name of respondent :
2. General Information about respondent:
Age Education Occupation Yearly
income
Marital
status
Remarks
Self
Husband
Son
Daughter
Mother in
law
Father in law
Mother
Father
Brother
Sister
Grandparents
B. Information on basic facilities:
1. Ownership of house: Own ________ Rented_______
2. Type of house : Pucca _______ Kuccha ______
3. Is there electricity in the house : Yes_____ No______
4. Nature of connection: Legal_____ Illegal_____
5. Source of drinking water: Municipal connection till home____ Common tap of the
neighbourhood_____ Borewell______ Well_____ Handpump____
C. Information on savings:
1. Indicate the options used for current savings: (please tick )
Govt
bank
deposit
Home
savings
Chit
funds/
ROSCA
Govt
schem
es
Pvt
company
scheme
Saving
with
money
lender
PO
box
savings
Saving
with
SEWA
bank
Other
(please
specify)
_______
2. Details of saving options:
Sr.
No
.
Saving option Amount
saved/month
Rate of
Interest
earned
Total savings
amount as on
date
Problem linked with any
saving option
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 285
Total =
3. Please the rank the reasons that form the basis of choosing a saving option:
Reasons for
choosing a
saving option
Rank
Security
Proximity to
home/business
Good rate of
interest
Access to
loans
Quick
withdrawal
Less
paperwork and
formalities
Other reasons
(please
specify)
____________
4. Please rate your saving options on the various advantages that influence choice of a
saving option:
Reasons for
choosing a
saving option
Saving option 1
Sewa Bank
Saving option 2 Saving option 3 Saving option 4
Security
Proximity to
home/business
Good rate of
interest
Access to loans
Quick
withdrawal
Less paperwork
and formalities
Other reasons
(please specify)
____________
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 286
5. Level of satisfaction from the savings facilility:
Highly
satisfied
Satisfied Neutral Dissatisfied Highly
dissatisfied
Saving option : SEWA Bank
Saving option : ___________
Saving option : ___________
Saving option : ___________
D.
1. Information of loans:
Sr.
No.
Reasons
for
taking
loan
Loan
amount
Loan
giver
Rate of
interest
charged
Collateral
required
Yes/No
Mode of repayment
EMI/Downpayment
Problems encountered
with the loan giver/
Remarks
SEWA
Business
reasons
1
2
3
4
5
Personal
reasons
1
2
3
4
5
Other
sources
of loan
– give
names
Business
reasons
1
2
3
4
5
Personal
reasons
1
2
3
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 287
4
5
Remarks________________________________________________________________
_______________________________________________________________________
2. Rank the dimensions that one considers when availing a loan:
Sr. No. Dimensions Rank
1 Proximity to
home/workplace
2 Quick processing of loan
3 Low interest rate
4 Familiarity of the source
5 Will give a bigger loan next
time
6 Helps me in business and
other activities
7 No collateral required
8 Does not use threatening
tactics for loan recovery
9 Gives a loan whenever
required
10 Gives loan despite the fact
that there is a pending loan
11 Facility of EMI
12 Others (please specify)
___________
3. Rate the various loan givers on the below mentioned dimensions:
Reasons for
choosing a loan
giver
Loan giver 1
Sewa bank
Loan giver 2
__________
Loan giver 3
__________
Loan giver 4
__________
Proximity to
home/workplace
Quick
processing of
loan (specify
time in days if
possible)
Low interest
rate
Familiarity of
the source
Will give a
bigger loan next
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 288
time
Helps me in
business and
other activities
No collateral
required
Does not use
threatening
tactics for loan
recovery
Gives a loan
whenever
required
Gives loan
despite the fact
that there is a
pending loan
Facility of EMI
Others (please
specify)
___________
Despite being a SEWA client, if you have taken a loan from other sources, is it out of
choice or compulsion
If choice, state the reason:____________________________________________
If compulsion, state the reason:________________________________________
4. Level of satisfaction from the loan facility:
Highly
satisfied
Satisfied Neutral Dissatisfied Highly
dissatisfied
Loan option : SEWA bank
Loan option : ___________
Loan option : ___________
Loan option : ___________
Remarks
______________________________________________________________________
E. Information on interactions with SEWA bank:
1. Since how many years are you a member of SEWA Bank: _____________
2. Who introduced you to SEWA bank : ______________
3. Details of other financial products availed from SEWA bank apart of savings and
loans(like insurance, pension etc)
Sr. No. Financial products Details
1
2
3
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 289
4. Have you attended any of SEWA’s programmes on financial literacy ? Yes____
No____
Please give details if yes : ________________________________________
What is your evaluation of it : _____________________________________
_____________________________________________________________
5. Expectations from SEWA bank:
a. Loans:____________________________________________
b. Savings :__________________________________________
c. Insurance :_________________________________________
d. Others (please specify) : ______________________________
__________________________________________________
6. Final remarks about SEWA bank :
________________________________________________________
__________________________________________________________________
___
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 290
Questionnaire for Self Help Group Members
A. Personal Information:
1. Name of respondent :
2. Name of Village:
3. Caste:
4. General Information about respondent:
Age Education Occupation Yearly
income
Marital
status
Remarks
Self
Husband
Son
Daughter
Mother in
law
Father in law
Mother
Father
Brother
Sister
Grandparents
B. Information on basic facilities:
1. Ownership of house: Own ________ Rented_______
2. Type of house : Pucca _______ Kuccha ______
3. Is there electricity in the house : Yes_____ No______
4. Nature of connection: Legal_____ Illegal_____
5. Source of drinking water: Municipal connection till home____ Common tap of the
neighbourhood_____ Borewell______ Well_____ Handpump____
6. Land owned : __________________
7. Buffaloes/Cows/Cattle owned:_______________________
C. Information on Self Help Group:
1. Name of Self Help Group and year of formation:
2. Position of respondent:
3. Responsiblilites in case of heading the SHG
._____________________________________________________________
______________________________________________________________
4. Duration of respondent’s membership:
5. Reason of joining the SHG:
a.________________________________
b.________________________________
c.________________________________
d.________________________________
6. How much do you save through the SHG(current saving) ___________________
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 291
7. Name the other places where you have been saving currently
Place Amount
____________ ____________
____________ ____________
____________ ____________
8. Have you ever taken a loan through the SHG
Yes______ No_________
9. Nature of loan: Intragroup lending_______ Bankloan________ Both_______
10. Details of all the loans taken from SHG till date:
Loan no. Category Reason Loan Amount Complete/Pending
11. Are you supposed to maintain certain amount of savings in order to avail a loan from
the SHG (bankloan/grouploan)
____________________________________________________________________
____________________________________________________________________
12. Did you encounter any problems in taking loan from the SHG
Yes___ No_____
13. In case of yes, please state the reasons
a.___________________________________
b.___________________________________
c.___________________________________
d.___________________________________
14. What are the advantages of taking loan from SHG
a.___________________________________
b.___________________________________
c.___________________________________
15. Have you ever taken loan from any other source Yes_____ No____
If yes, please give its details
Loan no. Source Reason Loan amount Problems
16. Have you ever defaulted on a SHG loan : Yes____ No______
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 292
17.If Yes, reasons for default
___________________________________________________________
18.What action did the SHG take
______________________________________________________________
19. If a SHG member defaults on a loan will you as a part of the SHG in dealing with the
defaulter ________________________________________________________
___________________________________________________________________
20.What has being a part of the SHG taught you
________________________________________________________________________
21. Have you gone to the bank as a part of the SHG
________________________________________________________________________
22. Final comments _______________________________________________________
________________________________________________________________________
________________________________________________________________________
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 293
Interview for Banks linked to Self Help Groups:
1. Name of Bank:
2. Name of Manager and designation:
3. What are your broad objectives to be achieved from the Bank- SHG linkage?
4. What are the numbers of SHGs linked with your bank?
5. What is the process through which a SHG gets linked with your bank?
6. What are the requirements that any SHG has to fulfill in order to get linked to your
bank?
7. What are the facilities/products/services that the Bank offers the members of the
SHGs?
8. What is the economic stratum of the members of the SHGs with whom your bank
deals?
9. Are members of this economic stratum who are not a part of the SHG, able to get the
bank’s facilities/products/services?
10. What is the role of the bank in the development of the SHG?
11. How do normal transactions between the bank and the SHG take place?
12. What role does the NGO play in the bank- SHG linkage?
13. Is there any minimum amount that the bank wants in terms of weekly/monthly/yearly
deposit from the SHG?
14. Does the Bank give any benefit to NGO if the NGO helps generate an SHG linkage?
15. What difference does the Bank- SHG linkage make in the life of the members of the
SHG?
16. What are the benefits that Bank give the SHG and its members?
17. Do the SHG members depend on the bank entirely for their financial requirements?
18. Are their other agents on whom they depend during financial requirements (except for
other SHG members)?
A Study of Microfinancing Models in Ahmedabad District
Thesis submitted for the degree of Doctor of Philosophy in Management SBist 294
19. What kind of loans are normally sought out by SHGs from you?
20. Under what reasons does the Bank refuse the SHG a loan?
21. Under what conditions does the Bank break itself from a linked SHG?
22. Under what conditions does the bank refuse to link a new SHG?
23. What are the new facilities/products/services that the bank shall be offering to the
SHG?
25. How does the bank view the SHG, as a sector that has to be entertained due to
government agenda or as a sector that has a profit potential?
26. If the bank looks at a profit potential, how does the bank envisage the strategic plan
that shall lead it to revenues from the SHG-Bank linkage model?
27. Comment upon the sustainability of this model?
28. Comment upon the impact of this model on raising the standard of living of SHG
members?
Before / after effects
29. Comment upon the outreach in terms of area and number of people of this model?
30. Which are the other models of microfinance, your bank is into. Please elaborate upon
their effectiveness?