microfinance (percept 2011)
TRANSCRIPT
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MICROFINANCE
PRESENTED BY:
MEENAKSHI MITRA
RAHUL SINGH
DMSR, G.S. COLLEGE,
NAGPUR.
21TH OCT. 2011.
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STRUCTURE: Hypothesis, Objectives & Research Methodology.
Introduction to Microfinance & its Model.
New Regulator & its Roles.
Target, Penetration & Outreach of MFIs.
Impact on Poverty & Women.
Data Analysis & Conclusion.
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HYPOTHESIS:
Microfinance is a Growing Sector & has an Impact over
Poverty, Living Standard & Women Empowerment.
Statistical.
OBJECTIVE:
How Microfinance Works, Its Impact on Poverty Line,
Standard Of Living & Women Empowerment.
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RESEARCH METHODOLOGY:
Secondary Sources.
www.indiastat.com
Institute of Microfinance Journals.
Microfinance India State of Sector Reports.
National Council Of Applied Economic Research
Reports.
www.Lokcapital.com
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INTRODUCTION:
Provision of Financial Services to Low-Income Clients or Solidarity Lending Groups.
Permanent Access to a Range of High Quality of Financial
Services such as Savings, Insurance, Fund Transfer.
Viable Investment Sector with Commercial Sector Joining
Social Sector Nurturing the Industry so far.
Microfinance Loans in India Ranges from 4500/- to
25000/- with an Interest Rate of 25%-35% p.a.
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MICROFINANCE MODEL:
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PRIMAR Y INVESTMENTS IN INDIAN MFIs:
DATE MFI INVESTMENT INVESTOR
JAN 2010 BANDHAN 11.0 Mn SIDBI
DEC 2009 UTKARSH 0.7 Mn AVISHKAR,
GOODWELL, IFC
OCT 2009 SPANDANA 47.1 Mn TEMASEK
SEPT 2009 ASMITHA 5.5 Mn BLUE ORCHARD
DEC 2008 ASOMI 0.6 Mn INCOFIN
JULY 2008 MMFL 6.0 Mn UNITUS
JUNE 2008 AROHAN 1.4 Mn LOK
DEC 2007 SKS 32.3 Mn SANDSTONE
MAY 2006 UJJIVAN 0.5 Mn BELLWETHER,
UNITUS.
Lokcapital.com
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New Regulator & Roles:
NABARD to be the Regulatory Body for both Depository
and Non Depository Micro MFOs . Its role entails:
Facilitating the Development of Credit Rating Norms
and Performance Benchmarks.
Specifying the Accounting Form and the Auditing
Standards.
Promoting Financial Literacy of MFO Clients and Sector Related Research.
Disseminating Information Relating to Best Practices.
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TARGET:
0.4% HOUSEHOLD
9,20,000/- &ABOVE.
5.9% HOUSEHOLD 1,84,000/- - 9,20,000/-& ABOVE.
22% HOUSEHOLD
82,800/- - 1,84,000/-& ABOVE.
72% HOUSEHOLD
BELOW 82,800/-.
LokCapital.com
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PENETRATION OF MICROFINANCE
STATEWISE:
STATES % OF PENETRATION
ORISSA, ANDHRA PRADESH,
KARNATAKA & TAMIL NADU.
GREATER THAN 15%
MAHARASHTRA, MADHYAPRADESH, CHATTISGARH, WEST
BENGAL & TRIPURA.
BETWEEN 5% - 15%.
GUJARAT, RAJASTHAN, HARYANA,
UTTARAKHAND, UP, BIHAR, ASSAM,
MEGHALAYA & JHARKHAND.
LESS THAN 5%.
J&K, HIMACHAL PRADESH, PUNJAB,
ARUNACHAL PRADESH, MANIPUR,
NAGALAND & MIZORAM.
NEGLIGIBLE PRESENCE OF
MICROFINANCE ACTIVITY.
Lokcapital.com
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www
.indiastat.com
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CRILEX ± the M-CRIL India MFI Growth Index (2011)
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0
10
20
30
40
50
60
74' 77' 86' 87' 94' 99' 02' 04' 05' 06' 08' 10'
BPL (%)
EARNERS (%)
44.5%
38.9%
26.1%23.9%
24.1%
27.5%
19.5%
17% 15.5%
34.7% 31.2%
33.1%37.5%
28.4%27%
25%
54.9%51.3
36%
IMPACT ON POVER TY:
www
.indiastat.com
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IMPACT ON WOMEN:
REPOR TED IMPROVEMENT/ INCREASE IN 2008 (%) 2010 (%)
Self Confidence Related To Travelling 78 81
Self Confidence Related In Handling Money 77 83
Ability To Face Family Disputes 63 61
Ability To Deal With Financial Crisis In Family 72 72
Decisions On Purchasing Household Items 62 63
Decisions On Buying Productive Assets 52 54
Decisions On Spending In Family & Social Expenses 67 68
Attendance In Village Committee. 36 38
N
ational Council Of Applied Economic Research Journal. (2008-2010.)
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DATA ANALYSIS:
Primarily Rural Outreach.
More Evidence For Poverty Alleviation.
High Proportion of Women Report Positively.
MFIs Should also Approach Urban Areas.