Microfinance presentation 2012

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Innovative, client focused and sustainable, the BRAC microfinance programme is a critical component of our holistic approach to support livelihoods. Over the course of the last four decades, we have grown to become one of the world’s largest providers of financial services to the poor, providing tools which millions can use for the betterment of their lives.

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Microfinance presentation 2012

  1. 1. BRAC Microfinance Programme www.brac.net
  2. 2. 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
  3. 3. www.brac.net
  4. 4. 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
  5. 5. www.brac.net
  6. 6. 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
  7. 7. 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
  8. 8. www.brac.net
  9. 9. www.brac.net
  10. 10. Savings • Regular Passbook Savings • Monthly Deposit Scheme • Double Deposit Scheme • Fixed Deposit Scheme www.brac.net
  11. 11. www.brac.net
  12. 12. BRAC Microfinance at a Glance Bangladesh Particulars As of October 2012 Loan Portfolio: $ 715 million Savings: $ 286 million Members: 6.02 million Borrowers: 4.42 million Average Monthly Disbursement: Staff: $ 103.7 million 17,988 www.brac.net
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  14. 14. Industry Position (As of October 2012) Particulars BRAC ASA Grameen Bank BURO Bangladesh Portfolio: (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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. Trend: BRAC Microfinance Bangladesh Particulars 2009 2010 2011 2012 (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% 116.4% 118.6% 110.8% 128.0% Operating Self Sufficiency www.brac.net
  20. 20. BRAC International Microfinance at a Glance Country Portfolio (Million) Avg. Monthly Members Borrowers 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
  21. 21. 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
  22. 22. Thank You www.brac.net

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