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 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 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 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 Thesis submitted for the degree of Doctor of Philosophy in Management SBist 274
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 Thesis submitted for the degree of Doctor of Philosophy in Management SBist 275
+ 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 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 As of date 2006-03-31 2007-03-31 2008-03-31 2009-03-31 USD USD USD USD Thesis submitted for the degree of Doctor of Philosophy in Management SBist 276
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 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 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 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% Thesis submitted for the degree of Doctor of Philosophy in Management SBist 277
Risk and Liquidity 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% Thesis submitted for the degree of Doctor of Philosophy in Management SBist 278
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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. - Thesis submitted for the degree of Doctor of Philosophy in Management SBist 283
Questionnaire for SEWA clients A. Personal Information: 1. Name of respondent : 2. General Information about respondent: Age Education Occupation Yearly income Self Husband Son Daughter Mother in law Father in law Mother Father Brother Sister Grandparents Marital status Remarks 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 Thesis submitted for the degree of Doctor of Philosophy in Management SBist 284
Total = 3. Please the rank the reasons that form the basis of choosing a saving option: Reasons for choosing a saving option Security Proximity to home/business Good rate of interest Access to loans Quick withdrawal Less paperwork and formalities Other reasons (please specify) Rank 4. Please rate your saving options on the various advantages that influence choice of a saving option: Reasons for Saving option 1 Saving option 2 Saving option 3 Saving option 4 choosing a saving option Sewa Bank Security Proximity to home/business Good rate of interest Access to loans Quick withdrawal Less paperwork and formalities Other reasons (please specify) Thesis submitted for the degree of Doctor of Philosophy in Management SBist 285
5. Level of satisfaction from the savings facilility: Highly satisfied Saving option : SEWA Bank Saving option : Saving option : Saving option : D. 1. Information of loans: Sr. Loan No. amount 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 Reasons for taking loan Business reasons Personal reasons Business reasons Personal reasons Loan giver SEWA Other sources of loan give names Rate of interest charged Collateral required Yes/No Satisfied Neutral Dissatisfied Highly dissatisfied Mode of repayment EMI/Downpayment Problems encountered with the loan giver/ Remarks Thesis submitted for the degree of Doctor of Philosophy in Management SBist 286
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 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 Loan giver 4 Thesis submitted for the degree of Doctor of Philosophy in Management SBist 287
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 Thesis submitted for the degree of Doctor of Philosophy in Management SBist 288
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 : Thesis submitted for the degree of Doctor of Philosophy in Management SBist 289
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 Self Husband Son Daughter Mother in law Father in law Mother Father Brother Sister Grandparents Marital status Remarks 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) Thesis submitted for the degree of Doctor of Philosophy in Management SBist 290
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 Thesis submitted for the degree of Doctor of Philosophy in Management SBist 291
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 Thesis submitted for the degree of Doctor of Philosophy in Management SBist 292
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)? Thesis submitted for the degree of Doctor of Philosophy in Management SBist 293
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? Thesis submitted for the degree of Doctor of Philosophy in Management SBist 294