BWDA Finance Limited

1. C. Joslin Thambi BWDA Finance Limited

2. Vision “A poverty free, prosperous, equitable and sustainable society” • Mission “To empower 15, 00,000 poor and vulnerable households economically and socially by 2015, through establishing sustained access to financial and capacity building services” • Slogan “15 by 15” BWDA FINANCE LIMITED

3. History/ Genesis of BWDA/BFL • 1985: Bullock-cart Workers’ Development Association (BWDA) started work with the aim to work for the socio-economic development of bullock-cart workers & their families in TN. • 1986: Registered under the Tamil Nadu Societies Registration Act, 1975. • 1988: BWDA started forming groups of women members of bullock-cart workers families • 1992: it started working with other low income families • Initially, promoted SHGs to link them with local banks for loans. • After 1998: Began lending to SHGs to supplement loans from banks. • 2003: BWDA has taken over an NBFC, renamed as BWDA Finance limited (BFL). • Increasingly • BFL undertakes the microfinance operations, • BWDA handles the agenda of development activities: Education, Health & Sanitation, Awareness Programmes, Vocational Training as well as group promotion. BWDA FINANCE LIMITED

4. Geographical Coverage BWDA FINANCE LIMITED

5. BFL’sGrowth BWDA FINANCE LIMITED

6. Rating BWDA FINANCE LIMITED

7. GrowthStrategy • Penetration & expansion strategies adopted • Diverse approaches – SHG, JLG, Individual • Saturation of blocks and districts – Cluster approach • SHG Formation in new areas based on demand • Less interest rate on reducing balance. • Monthly repayment. • Career growth opportunities for staff. • Decentralised management. • Diversified sources of Borrowings • Various loan products BWDA FINANCE LIMITED

8. Challenges • Regulatory constraints - Unclear stand of various State Govt.,/RBI about the role of MFIs • Government schemes for waiver of loans • Govt. sponsored groups operating with political ambition. • Multiple lending resulting in unhealthy competition • Increase in cost of funds • High demands of return & control by external investors • Inability to meet the demand of the customers due to financial constraints • Equity – Large community share holders & less external investors. • Lack of tailor-made software for local needs • Expectation for regular dividend by the community share holders • Huge gap between the demand and supply of new funds BWDA FINANCE LIMITED

9. Opportunities • Emerging new opportunity to finance in semi urban & village areas for income generation schemes. • Excellent scope for introduction of new, viable, need based, customer oriented financial & non financial products. • Growing demand from rural households, due to inability of financial sector to penetrate and bring about financial inclusion. • Willingness of Institutional supporters • Acceptance of External and Internal Investors • Induction of new professionals • Strong support service from BWDA,CED and Micro-save • Credit Plus services to the clients and their family members • Potential of e-banking & m-banking and other technology oriented services • Fine tuning of organization due to regulatory demands BWDA FINANCE LIMITED

10. Funding • Initially provided bank linkage • Started getting & giving loans from financial institutions at less interest rates. • Graduation to a NBFC – more avenues • Increase in cost of funds – inability to provide cheap services as before. • Institutional investors – access to funds • Equity investors demand for more control – tendency to drift from mission to meet investor demands • Investors also drive for organizational betterment due to their standardized benchmarks • Commercial investors may affect the social motive – importance of choosing right investors • Focus on transferring maximum benefits to the poor BWDA FINANCE LIMITED

11. Funding • Gap in capital if Venture Capital and investors lose interest • Constant pressure to improve operational standards & returns to rouse the interest of investors • Adequate systems & controls for efficient credit management • Unhealthy competition by certain organizations with excess funds but lack of social motive which disrupt functioning of MFIs working for betterment by multiple lending to its clients. • Savings – a source of funding and regulatory restrictions • Plans to tap other sources of funding • Impact of securitization on the poor and conflict with return driven investors BWDA FINANCE LIMITED

12. Financial Partners • Rabo Bank • Cordaid • SIDBI • Deutsche Bank • Rashtriya Mahila Kosh • Manaveeya • Lakhmi Vilas Bank • Axis Bank • ING Vysya Bank • Corporation Bank • HDFC Bank • FWWB of India • IDBI Bank Limited • KarurVysya Bank • Development Credit Bank • South Indian Bank • State Bank of Tranvacore • Canara Bank • Indian Overseas Bank BWDA FINANCE LIMITED

13. Financial Partners • Rabo Bank • Introduction - Boulder microfinance training 2005 • Less interest rates • Capacity building & handholding • Cordaid • Introduction – Tsunami funding after BWDA was acknowledged for its activities when they were evaluating the efforts of other institutes they funded • Less interest rates • Capacity building & Institutional support • SIDBI • Microfinance activities • Capacity building support BWDA FINANCE LIMITED

14. Financial Partners • Deutsche Bank • Introduction by tsunami funding • Less interest rate • Rashtriya Mahila Kosh – less interest rate • Other partners • Funding on demand • Comparatively high interest rates • All financial partners provide financial support • Funding is based on BWDA/BFL’s efficient performance • Partners play a key role in the organization's growth • Certain partners have evolved from loan providers to equity investors BWDA FINANCE LIMITED

15. Financial Partners • Performance criteria and standardization demands of funders has increased over time • Partners providing capacity building are very important as they facilitate improvement in organization morale. • Partners providing funds at less interest rates play a critical helping the organization provide better service to the clients by reducing their interest rate burden • Mutual trust & returns to all participants • Motivation to fund – profit focus or social focus? BWDA FINANCE LIMITED

16. Financial Institution wise Loan Sanctioned & Outstanding BWDA FINANCE LIMITED

17. Operational Partners • RABO Foundation • CORDAID • Deutsche Bank • Small Industries Development Bank of India (SIDBI) • Tamil Nadu State Social Welfare Board • Tamil Nadu Voluntary Health Association • Horticulture Department of Tamil Nadu • LIC of India • United India Insurance Company • Rural Development Agency BWDA FINANCE LIMITED

18. BWDA/BFL activities • Education services for the underprivileged • BWDA Arts & Science college • BWDA Polytechnic college • BWDA Schools • BWDA Summer School • Skill & Livelihood training • Entrepreneurial development activities • Health programs • Social, environmental, health, educational, technical awareness programs BWDA FINANCE LIMITED

19. A Few Photos of our ActivitiesSkill Training Programmes BWDA FINANCE LIMITED

20. Income generation activities Electrical shop Milk vending Photo copier & Telephone booth Multipurpose shop BWDA FINANCE LIMITED

21. BWDA Educational Programmes BIDFin, Courtalam BWDA Polytechnic College BWDA School • BWDA Arts & Science College BWDA FINANCE LIMITED

22. BFL Branch Offices Madhakadipet - Pudhucherry Dist. Ambasamudram – Tirunelveli Dist. Panagudi – Tirunelveli Dist. Villupuram II – Villupuram Dist. BWDA FINANCE LIMITED

23. Thank you BFL BWDA FINANCE LIMITED