CRISIL MFI Grading. Weaker Sections Development Society-Institute of Innovative Technology Transfer and Environment (WSDS Initiate) mfr5

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1 CRISIL MFI Grading Weaker Sections Development Society-Institute of Innovative Technology Transfer and Environment (WSDS Initiate) mfr5 Date Assigned October 13, 2014

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3 DISCLAIMER CRISIL's microfinance institution (MFI) Grading reflects CRISIL s current opinion on the ability of an MFI to conduct its operations in a scalable and sustainable manner. In the case of NGO-MFIs and entities with multiple businesses, CRISIL s MFI Gradings apply only to their microfinance programmes. The MFI Grading is a one-time exercise and the Grading will not be kept under surveillance. This grading is valid for a period of one year from the date of assignment. However, CRISIL reserves the right to suspend, withdraw, or revise the MFI grading at any time, on the basis of any new information or unavailability of information or any other circumstances brought to CRISIL s notice, which CRISIL believes may have an impact on the grading. CRISIL recommends that the user of the Grading seeks a review of the Grading if the graded institution/microfinance programme experiences significant changes/events during this period which could impact the graded institution/its grading. CRISIL MFI Gradings are based on the information provided by the Institution, or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the MFI Grading is based. CRISIL MFI Grading is not a recommendation to purchase, sell or hold any financial instrument issued by the graded MFI, or to make loans and donations / grants to the institution. The MFI Grading does not constitute an audit of the graded MFI by CRISIL. The MFI Grading Report and the information contained therein are the intellectual property of CRISIL. The MFI Grading Report should not be reproduced or distributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part, for any purpose or by any means without the prior written permission of CRISIL. The MFI Grading should not be used for mobilising deposits/savings/thrift/insurance funds/other funds (including equity) from their members/clients or general public and should not be used in its external communications, promotional materials or member/client passbooks. CRISIL is not responsible for any errors and especially states that it has no financial liability, whatsoever, to the subscribers/ users/transmitters/distributors of its MFI Gradings. For the latest information on any outstanding CRISIL MFI Gradings, please contact CRISIL RATING DESK at CRISILratingdesk@crisil.com or at (+91-22) /3064. CRISIL House, Central Avenue, Hiranandani Business Park Powai, Mumbai Phone: Fax: crisilsmeratings@crisil.com CRISIL Limited. All Rights Reserved 1

4 CRISIL MFI Grading MICROFINANCEINSTITUTION (MFI) GRADING mfr1 mfr2 mfr3 mfr4 mfr5 mfr6 mfr7 mfr8 CRISIL s microfinance institution (MFI) Grading is a current opinion on the ability of an MFI to conduct its operations in a scalable and sustainable manner. The MFI Grading is assigned on an eight-point scale, with mfr1 being the highest, and mfr8 the lowest. The MFI Grading is a measure of the overall performance of an MFI on a broad range of parameters under CRISIL s MICROS framework. It includes a traditional creditworthiness analysis using the CRAMEL approach, modified to be applicable to the microfinance sector. The acronym MICROS stands for Management, Institutional arrangement, Capital adequacy and asset quality, Resources and asset-liability management, Operational effectiveness, and Scalability and sustainability. MFI Grading scale: mfr1 - highest; mfr8 lowest MFI GRADING HISTORY MFI Grading Assigned on mfr5 July 24, CRISIL Limited. All Rights Reserved 2

5 FACT SHEET Name of the MFI Weaker Sections Development Society-Institute of Innovative Technology Transfer and Environment (WSDS Initiate) Incorporated 2007 (microfinance programme commenced in the same year) Legal Status Society (registered under Societies Registration Act, 1860) Business Lending to self-help groups (SHGs) and joint-liability groups (JLGs) MD and CEO Contact person and office details Lenders Statutory auditors Mr. Lamkhomang Kipgen Mr. Lamkhomang Kipgen, MD and CEO WSDS Initiate Gollut Gens, New Lambulane Imphal East , Manipur Tel: Website: Ananya Finance for Inclusive Growth Private Limited Ashwarya Trading Private Limited Friends of Women's World Banking (FWWB) Kiva International Kashi Vishwanatha Vidya Samasthe North Eastern Development Finance Corporation Limited (NEDFi) Kunjabi and Company, Chartered Accountants 2013 CRISIL Limited. All Rights Reserved 3

6 CRISIL MFI Grading MFI SNAPSHOT AND PRODUCT PROFILE As on/for the period ended June 30, 2014 March 31, 2014 March 31, 2013 Borrower base 7,346 7,513 2,913 Employees 33 (18 credit facilitators) 33 (18 credit facilitators) 21 (10 credit facilitators) Branches Loans outstanding Rs million Rs million Rs million Loans disbursed Rs.7.06 million Rs million Rs million Loan product Loan size Interest (%) Tenure (months) SHG loan for women Rs.5,000 Rs.15, JLG loan for women Rs.10,000 Rs.15, Education loan Energy loan Primary Rs.10,000 Rs.15, Professional Rs.1,50, Solar home lighting 45 W 12 Rs.12,173 Rs.21, Solar home lighting 75 W CRISIL Limited. All Rights Reserved Notes: The professional loan bears a flat interest rate and repayments include a six-month moratorium. Interest is charged on a reducing-balance basis for all other loans. Repayment is weekly and monthly. The MFI also charges a processing fee of 1.00 per cent of the loan amount. The MFI offers credit insurance services (to borrowers and spouse) through its tie-ups with ICICI Prudential Life Insurance, Birla Sunlife Insurance, and Bajaj Allianz Life Insurance. Credit insurance fee is 1.00 per cent of the loan amount. 4

7 SOCIAL AND TRANSPARENCY INDICATORS As on March 31, 2014 Average loan outstanding/per capita GNI (2013 figure, based on current prices) 15.00% Women staff/total staff 45.00% Women borrowers/total borrowers % Interest rate on reducing basis (includes processing fee charged by the MFI) 21.00% Are interest rates (on declining basis) communicated to clients in writing? Are processing charges communicated to clients in writing? Does the MFI provide an official receipt to clients after repayment collections? Is access to loan of other MFIs a parameter to select/screen clients? Is access to loan of other MFIs/residual income a factor in appraising the client s repayment capacity? Does the MFI appraise the client's income/poverty/asset level and use this data to other target low-income clients? Does the MFI capture and analyse reasons for client drop-out rate? Yes Yes Yes No Yes Yes Yes Are clients provided head office contact details as part of the grievance redressal mechanism? Source: CRISIL Centre for Economic Research (CCER) computations based on Central Statistical Organisation (CSO) data All details are as provided by the MFI and not verified by CRISIL #Details are as provided by the MFI and not verified by CRISIL Yes 2013 CRISIL Limited. All Rights Reserved 5

8 CRISIL MFI Grading ORGANISATION STRUCTURE GOVERNING BOARD Name Mr. Lamkhomang Kipgen Mr. Tongkhothang Kipgen Mrs. Rose Mangshi Kipgen Mrs. Lhingjaneng Gangte Profile The CEO and founder member of WSDS has a BSc degree from Delhi University and over two decades of microfinance and development experience. The MFI s chairman has a BSc degree in agriculture, with over three decades of development experience through the Government of Manipur s Horticulture and Soil Conservation Department. Over three decades of experience as senior lecturer through GP Women s College, Imphal; active board member with WSDS for the past four years PadmaShri awardee with over two decades of welfare experience and a former member of Manipur State Commission for Women. Has been an active board member at WSDS for the past four years Mrs. Helam Haokip Over decade of development experience; active board member for the past five years. Mr. Tuime Lolly Mr. O Somorendro Meitei Over two decades of development experience; active board member for the past five years. MBA and MA (Anthropology) with 15 years of microfinance experience in Northeast India through NEDFi; active board member for the past year CRISIL Limited. All Rights Reserved SENIOR MANAGEMENT Designation Name Qualifications Microfinance experience COO Mr. Seikhothang Haokip MA (Pol. Sc.) 7 years HR Manager Mr. Gemson Shimray Awungshi BA 8 years (insurance sector) Finance Manager Mr. Phanjoubam Inaocha Singh BCom 12 years Head-Cluster Mr. Letminthang Kipgen BA 9 years Assistant-Kiva Coordinator Ms. Veizaneng Hangshing BBA (Marketing) 3 years Assistant-MIS Ms. Konthoujam Ronita Devi BA (Sociology) 4 years 6

9 MFI GRADING RATIONALE CRISIL s MFI grading on WSDS Initiate reflects the following strengths: Experienced board and senior management Above-average asset quality Adequate earnings profile The listed grading strengths are offset by its: Small net worth and scale of operations Modest resource profile Scope of improvement in cash management and systems and processes Geographic concentration of managed assets PROFILE & LENDING MODEL WSDS Initiate is an Imphal-based NGO-MFI that enables women entrepreneurs to undertake small income-generation ventures, such as agriculture-related activities, greengroceries, and tailoring and embroidery shops. It follows the SHG and JLG models of lending, and operates through eight branches across six districts of Manipur and two districts of Mizoram. As on March 31, 2014, WSDS had loans outstanding of Rs million to 7,513 borrowers. It also offers training and livelihood services and undertakes developmental projects in financial inclusion, education, health awareness, and water and sanitation. The MFI forms and trains JLGs and SHGs and provides livelihood support through microfinance loans. On selection of an operational area, the branch head (BH) organises a general meeting, in which targeted members are introduced to the organisation and its microfinance programme. Interested women from the same locality are formed into groups of members. Three-day training is held on the group concept, programme policy, loan product, and repayment details, following which the credit facilitators (CFs) conduct group recognition test (GRT). The groups then submit the resolution, request and decision letters, identification proof, and loan applications with details on family income and expenditure. The CFs verifies the documentation and forwards the loan applications to the head office (HO) to identify instances of multiple lending. Sanctioned loans are disbursed at the branches CRISIL Limited. All Rights Reserved 7

10 CRISIL MFI Grading MANAGEMENT Adequate microfinance experience Loan monitoring yet to be strengthened WSDS Initiate has seven years of microfinance and development experience in remote districts of Manipur and Mizoram. This is expected to enable the MFI to expand to new areas, while maintaining its portfolio quality. The NGO-MFI also receives consulting and technical assistance from a Washington-based non-profit organisation called the Vittana Foundation for its education loan program. WSDS has a loan monitoring software in place at the HO to generate daily reports, such as demand and collection sheets and portfolio at risk (PAR) statements. However, only three of eight branches have access to the software and the remaining five branches depend on manual documentation, which are further submitted and updated in the software at HO level. CRISIL believes that manual process poses the risk of data inaccuracy and low productivity. CRISIL considers timely computerisation and data migration to be critical for portfolio tracking CRISIL Limited. All Rights Reserved Adequate credit appraisal process Inadequate internal audit (IA) function The NGO-MFI has a decentralised credit appraisal process where the branch head sanctions the loans after due diligence, including verification of the applicant s household income and expenses. The field staff conducts household surveys to ascertain the creditworthiness of potential clients and also complete the requisite know-your-customer (KYC) documentation. WSDS has also tied-up with the High Mark credit information bureau to prevent multiple lending and access the repayment history of potential clients. CRISIL believes that the credit appraisal process is adequate for its current scale of operations. The NGO-MFI has dedicated one IA personnel to verify loan applications, demand and collection sheets, and other documents at the branches and HO on a monthly basis. Findings are shared with 8

11 the BMs but there have been instances of delayed audits due to shortage of manpower. CRISIL believes IA to be crucial for internal control through formalised capture of operational deviations and follow-ups for adherence. Cash management system remains to be strengthened Social impact and limited competition The branches have high cash balances due to the practice of making deposits the day after collections. The MFI has not availed cash-intransit and cash-in-safe insurance, and reconciliation is undertaken only monthly, which increases the risk of theft/misappropriation and ineffective cash utilisation. CRISIL believes same-day deposits and daily reconciliations to be necessary for strong for strong cash management. The micro-credit and credit-plus services offered by WSDS have helped create financial literacy and empowerment in areas with limited access to formal financial services. As it operates are in remote areas of Manipur and Mizoram that have poor infrastructure and connectivity, it faces limited competition from other MFIs in its operational areas. INSTITUTIONAL ARRANGEMENT Experienced board and senior management WSDS has a seven-member board with over a decade of experience in microfinance, social development, and banking and financial services (BFS). This brings in a high degree of operational expertise and is likely to be beneficial for the NGO-MFI over the long-term. The senior management comprises professionals with experience in microfinance and social development sector, and the NGO-MFI has scope to benefit from experience of the founder director, Mr. Lamkhomang Kipgen for decision-making in funding and relationship management. However, CRISIL believes that the organisation can benefit significantly through the induction of core microfinance professionals CRISIL Limited. All Rights Reserved 9

12 CRISIL MFI Grading CAPITAL ADEQUACY AND ASSET QUALITY Although the MFI s corpus improved to Rs.2.35 million in from Small net worth Rs.1.63 million in due to additions to reserves and surplus, it remains small as compared to the other CRISIL-rated MFIs. In the same period, capital adequacy ratio (CAR) declined to 2.86 per cent from 4.61 per cent, and the debt-to-equity ratio increased from times to times due to increase in asset size without adequate increase in corpus. CRISIL believes that the current capitalisation limits asset growth and it also expects gearing to deteriorate further with the planned growth in portfolio and borrowings. Moreover, the MFI s status as a society restricts its ability to mobilise equity and it has to rely on internal accruals and capital grants. Above-average asset quality Though the MFI is operating in sparsely populated area, it maintained aboveaverage asset quality with an on-time repayment rate of per cent and portfolio at risk greater than 90 days (PAR>90 days) of 0.05 per cent as on March 31, CRISIL believes that the organisation s ability to extend repeat loans and meet credit demands on time will be an important grading factor CRISIL Limited. All Rights Reserved Portfolio continues to be concentrated in one district of Manipur The Imphal and Senapati districts of Manipur together accounted per cent of the MFI s overall loan portfolio as on June 30, This makes it vulnerable to operational risks, as any adverse credit event in these locations could affect capitalisation. CRISIL expects operations to remain concentrated over the midterm as the MFI plans to set up two new branches in Manipur. Its ability to maintain acceptable delinquency while also pursuing growth remains a key grading sensitivity factor. 10

13 RESOURCES AND ASSET LIABILITY MANAGEMENT Moderate resource profile and financial flexibility The NGO-MFI had outstanding borrowings of Rs million from five lenders as on July 31, 2014, out of which NEDFi accounted for around per cent (Rs million). CRISIL expects an improvement in the MFI s resource profile as it received sanction of Rs million in and of Rs million in It also expects Rs million from SIDBI by December 31, The MFI raised low cost borrowings from Kashi Vishwanatha Vidya Samasthe at a processing fee of 5.00 per cent, while KIVA International sanctioned a three-year, interest-free loan of Rs.1.10 million per month. Thus, the MFI s weighted average cost of borrowings was low at 6.12 per cent as on July 31, CRISIL expects the cost of borrowings to remain moderate as MFI plans to raise borrowings in the near term to fund portfolio growth. OPERATIONAL EFFECTIVENESS Small scale of operations with improving productivity Adequate earning profile Although the Society s loan portfolio improved to Rs million in from Rs million in , it remains small as compared to other mid-sized MFIs. In the same period however, following increase in asset size, the NGO-MFI s field productivity indicators improved as follows: o Loans outstanding per credit facilitator increased to Rs.4.39 million from Rs.3.32 million o Loans outstanding per branch increased to Rs.9.88 million from Rs.4.74 million o Borrowers per credit facilitator increased to 417 from 291 and borrowers per branch increased to 939 from 416 The NGO-MFI has an adequate operating efficiency as: o Operational self-sufficiency (OSS) improved to per cent as on March 31, 2014 from per cent as on March 31, 2013 o Operating expense ratio increased to 8.73 per cent from 6.04 per cent 2013 CRISIL Limited. All Rights Reserved 11

14 CRISIL MFI Grading in the same period due to increase in number of branches and employees WSDS made a profit of Rs.0.73 million in , which increased from Rs.0.12 million for mainly on account of increase in asset size. CRISIL expects the NGO-MFI s earning profile to remain adequate in the midterm due to increase in operating expense, even though OSS is expected to remain over 100 per cent. SCALABILITY AND SUSTAINABILITY WSDS has a profitable seven-year track record in microfinance and development in its area of operations. The experience of the board and senior management has enabled it to maintain above-average asset quality. WSDS s sustainability would depend on its ability to strengthen its MIS and implement loan monitoring software at all its branches for real time monitoring and control, capitalisation levels, fundraising capacity, and earning profile. Further, CRISIL expects that NGO-MFI s ability to diversify to new geographies while maintaining good asset quality and further optimising productivity to remain a key grading factor CRISIL Limited. All Rights Reserved 12

15 BUSINESS INDICATORS Rs. million Business Growth 7,513 2, , Mar-12 Mar-13 Mar-14 Loan outstanding (in Rs. million) 8,000 6,000 4,000 2,000 0 No Business Outreach Mar-12 Mar-13 Mar-14 Branches Districts covered Rs. million Capitalisation level Mar-12 Mar-13 Mar-14 Networth (in Rs. million) Debt/net worth (in times) Times 14% 9% 3% District-wise concentration of loan portfolio as on March 31, % 8% Senapati 50% Imphal East Churachandpu Bishnupur Aizawal Kolasib 1,400 1,200 1, No ,208 Productivity indicators Mar-12 Mar-13 Mar Rs.million Borrowers/ credit officer (in no.) Borrowers/branch (in no.) Loan outstanding/credit officer (in Rs. million) 26% 9% Borrowing profile as on July 31, % 8% 54% Ananya Finance for Inclusive Growth Private Limited NEDFi FWWB Kiva International 2013 CRISIL Limited. All Rights Reserved 13

16 CRISIL MFI Grading FINANCIAL INDICATORS Income and Expenditure Statement Rs. million For the year ended March 31, MFI s Projections Audited Audited Audited Fund based income Interest and finance charges Gross spread Fee based income Total income Gross surplus Personnel expenses Administrative expenses Total expenses Provision for loan loss Other provisions Total provisions Depreciation Profit/loss before tax Tax Profit/loss before revenue grants Grants and donations * Net surplus *Donation for administrative expenses 2014 CRISIL Limited. All Rights Reserved 14

17 Balance Sheet Rs. million As on March 31, MFI s Projections Audited Audited Audited Liabilities Corpus Borrowings Provision for loan loss Other liabilities and provisions Total current liabilities Total liabilities Assets Loans and advances Investments Cash and bank balances Total funds deployed Other current assets & advances Net fixed assets Total assets CRISIL Limited. All Rights Reserved 15

18 CRISIL MFI Grading 2014 CRISIL Limited. All Rights Reserved Key Financial Ratios in per cent For the period ended March 31, Yield MFI s Projections Audited Audited Audited Fund based yield Portfolio Yield Fee based income/avg. funds deployed Total income/avg. funds deployed Cost of funds Interest paid/avg. funds deployed Interest paid/avg. borrowings Interest spread Spreads on lending Overheads Operating expense ratio Personnel expense ratio Administrative expense ratio Profitability Net surplus/avg. net worth Net profit/avg. funds deployed Operational self sufficiency Asset quality Provisioning/Avg. loan outstanding Capitalisation Total debt/net worth (times) Capital adequacy

19 ANNEXURES 1.1 Outreach Summary Productivity and Efficiency Indicators Asset Quality District wise Loan Outstanding CRISIL Limited. All Rights Reserved 17

20 CRISIL MFI Grading 1.1 Outreach Summary As on/for the period ended Unit June-14 Mar-14 Mar-13 Mar-12 Members No. 17,000 16,814 14,934 14,147 Borrowers No. 7,346 7,513 2,913 2,857 Groups No. 2,295 2,264 1,784 1,691 Branches No Districts No Women borrowers % Disbursements Rs. mn Loan outstanding Rs. mn Productivity and Efficiency Indicators As on/for the period ended Unit June-14 Mar-14 Mar-13 Mar-12 Total employees No Credit facilitator No Women employees No Borrowers/branches No Loan outstanding/branch Rs. mn Borrowers/credit officer No Loan outstanding/credit officer Rs. mn Average loan o/s per borrower Rs. 7,719 10,519 11,401 7, CRISIL Limited. All Rights Reserved 18

21 1.4 Borrowing Profile Lenders Interest (%) Loan o/s (Rs. million) Ananya Finance for Inclusive Growth Private Limited North Eastern Development Finance Corporation Limited (NEDFi) Friends of Women's World Banking (FWWB) Kiva International* Kashi Vishwanatha Vidya Samasthe** Total Asset Quality Total outstanding balance associated with loans that are Mar-14 Mar-13 Mar-12 Amt % of PAR Amt % of PAR Amt % of PAR Portfolio being current Late (at least one payment) days days days days year or more Total portfolio Portfolio at risk > 30 days Portfolio at risk > 90 days Portfolio at risk > 365 days CRISIL Limited. All Rights Reserved 19

22 CRISIL MFI Grading Microfinance in India and recent developments Microfinance in India and recent developments Over 120 million households in India currently face financial exclusion. Over the past decade, the microfinance sector has played a key role in bringing basic financial services to the economically underprivileged, enabling them to raise their income level and improve living standards through small-scale credit, savings, and other basic financial products. Since its emergence in the 1980s, India s microfinance sector has grown tremendously in terms of both size and financial maturity, reaching out around 2.75 crore people across India, with a portfolio outstanding around Rs. 280 billion (NBFC-MFIs) as on March 31, Channels of microfinance There are two major delivery channels for microfinance in India self-help groups (SHGs) and microfinance institutions (MFIs). SHGs typically have members of the same locality who meet weekly or monthly to contribute a set savings amount, which is then lent to other members. SHGs are promoted by various non-governmental organisations (NGOs) and the apex agricultural credit bank, National Bank for Agriculture and Rural Development (NABARD), under its SHG-bank linkage program. MFIs on the other hand mainly deliver their services via the Grameen model, (developed by Grameen Bank, Bangladesh) or the ASA model, developed by ASA, a leading Bangladesh-based NGO-MFI. However, the target clientele for both channels SHGs and MFIs are those without access to banking services or who depend on informal sources such as friends and money lenders for their credit requirements CRISIL Limited. All Rights Reserved Priority-sector lending status The Government of India requires banks to invest a percentage of their portfolio in specific sectors, at a concessional rate of interest to boost economic development in the country. The RBI has laid down a number of qualification criteria for NBFC-MFI to receive priority-sector status. For instance, income-generating activities need to account for at least 75 per cent of its loan portfolio, and qualifying assets must account for 85 per cent of the total assets (excluding cash, balances with banks and financial institutions, government securities and money market instruments). Regulatory Environment After Andhra Pradesh crisis, the Reserve Bank of India (RBI) appointed the Malegam Committee in October 2010 to identify MFI challenges and suggest remedial action. The RBI has broadly accepted the Committee s recommendations toward promoting fair competition, protecting client interests, and 20

23 improving pricing transparency with regard to MFIs operating as non-banking financial institutions (NBFCs), as these falls under RBI authority. The Microfinance Institutions (Development and Regulation) Bill, 2012 is awaiting parliamentary approval by the national. It proposes RBI as the sole regulator of MFIs. a. Credit Bureaus - The first microfinance credit bureaus in India, High Mark and Equifax, were set up in 2011 to help MFIs address credit risks by assessing the repayment capacity of potential borrowers. Equifax also collects client data from MFIs. According to High Mark and Micro Finance Institutions Network (MFIN), more than 120 MFIs, accounting for approximately 90 per cent of all such institutions in the country, have enrolled in credit bureaus. b. Pricing of Credit Recently RBI has removed the 26% interest rate cap on loans given by microfinance companies and linked the interest rate to the cost of funds. The microfinance institutions (MFIs) should arrive at the lending rate by calculating their cost of funds plus a maximum 10% margin for systemic NBFC-MFIs and 12% for small NBFC-MFIs. c. Self-regulating organization (SRO) - In November 2013, the RBI announced the criteria for SRO for microfinance industry to ensure effective monitoring of the functioning of NBFC- MFIs, their compliance with the regulations and code of conduct and in the best interest of the customers of the NBFC-MFIs. While membership to the SRO is not mandatory, NBFC-MFIs are encouraged to voluntarily become members of at least one SRO. As a result June 2014 RBI formally recognised Microfinance India Network (MFIN) as the SRO CRISIL Limited. All Rights Reserved 21

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26 About CRISIL Limited CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations. About CRISIL Ratings CRISIL Ratings is India's leading rating agency. We pioneered the concept of credit rating in India in With a tradition of independence, analytical rigour and innovation, we have a leadership position. We have rated over 52,000 entities, by far the largest number in India. We are a full-service rating agency. We rate the entire range of debt instruments: bank loans, certificates of deposit, commercial paper, non-convertible debentures, bank hybrid capital instruments, asset-backed securities, mortgage-backed securities, perpetual bonds, and partial guarantees. CRISIL sets the standards in every aspect of the credit rating business. We have instituted several innovations in India including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We pioneered a globally unique and affordable rating service for Small and Medium Enterprises (SMEs).This has significantly expanded the market for ratings and is improving SMEs' access to affordable finance. We have an active outreach programme with issuers, investors and regulators to maintain a high level of transparency regarding our rating criteria and to disseminate our analytical insights and knowledge. CRISIL Privacy Notice CRISIL respects your privacy. We use your contact information, such as your name, address, and id, to fulfill your request and service your account and to provide you with additional information from CRISIL and other parts of The McGraw-Hill Companies, Inc. you may find of interest. For further information, or to let us know your preferences with respect to receiving marketing materials, please visit You can view McGraw-Hill's Customer Privacy Policy at Last updated: April 30, 2012 CRISIL House, Central Avenue, Hiranandani Business Park Powai, Mumbai Phone: Fax: crisilsmeratings@crisil.com