CRISIL Ratings India Top 50 Mfis

0cteber 2009
CRISIL RaIihgs Ioday provides Ihe widesI coverage oh crediI qualiIy ih Ihdia, crediI raIihgs ouIsIahdihg oh more
Ihah 2300 ehIiIies ahd per!ormahce raIihgs oh more Ihah 5954 SMLs as oh 1uhe 30, 2009. Sihce ihcepIioh, CRISIL
has raIed over 7839 ehIiIies (excludihg SMLs) wiIh IoIal debI aggregaIihg Io more Ihah Rs. 28.65 Irillioh .
CRISIL RaIihgs has a 70 per cehI peheIraIioh by volume ih Ihe domesIic bohd markeI. CRISIL RaIihgs raIes virIually
every kihd o! orgahisaIioh, ihcludihg ihdusIrial compahies, bahks, SMLs, hoh-bahkihg !ihahcial ihsIiIuIiohs,
micro!ihahce ihsIiIuIiohs, ihsurahce providers, muIual !uhds, ih!rasIrucIure ehIiIies, sIaIe goverhmehIs, ahd urbah
local bodies. II also raIes securiIised paper.
Spino hus lo bo ud|uslod by Prinlor ul his ond
CRl5lL RATlNG5
8ahgalore 560 042, Ihdia.
1LL +91 (80) 2558 0899, 2559 4802
FAX +91 (80) 2559 4801
Chennoi
Mezzahihe Floor, 1hapar House
43/44, MohIieIh Road
Lgmore
Chehhai 600 008
1LL +91 (44) 2854 6205, 2854 6093
FAX +91 (44) 2854 7531
Hyderobod
3rd Floor, Uma Chambers
PloI ho. 9 & 10, Nagar|uha Hills
(Near Puh|aguIIa X Road)
Hyderabad 500 082, Ihdia.
1LL +91 (40) 2335 8103 / 8105
FAX +91 (40) 2335 7507
www.crisil.com
C-1, 1sI Floor
PloI No. 1 & 2
Ishwar Nagar
Near Okhla Crossihg
New Delhi 110065
1LL +91 (11) 4250 5100, 2693 0117 / 121
FAX +91 (11) 2684 2212
Fune
1187 / 17 Chole Road
Shiva|ihagar
Puhe 411 005, Ihdia.
1LL +91 (20) 4018 1900
FAX +91 (20) 4018 1930
CRl5lL Offices
Heod Office
CRISIL House
121 / 122 Ahdheri-Kurla Road
Ahdheri (LasI)
Mumbai 400 093, Ihdia.
1LL +91 (22) 6691 3001 - 09
FAX +91 (22) 6691 3000
RegionoI Offices in lndio
Ahmedobod
303, PariIosh, Usmahpura
Ahmedabad 380 013, Ihdia.
1LL +91 (79) 4024 4500, 2755 0317
FAX +91 (79) 4024 4520
ongoIore
W-101, Suhrise Chambers
22, Ulsoor Road
KoIkoto
Horizoh, 4Ih !loor
57, Chowrihghee Road
KolkaIa 700 071, Ihdia.
1LL +91 (33) 2289 1949 / 1950
FAX +91 (33) 2283 0597
New DeIhi
1he Mira
A FinanciaI Awareness !nitiative ol CR!S!L
l80l 10F 0
Nl080fl880l l8$1l101l08$
Managing Uireotor & Chief Lxeoutive 0ffioer
Reea Kudva
3enior Uireotor
Raman Uberel
Pawan Agrawal
Uireotor pagrawalorisil.oom +91 (22) 6691 3301
Ramraj Pal
Uireotor rpaiorisil.oom +91 (22) 6691 3036
Retal balal
ead hdalalorisil.oom +91 (22) 6691 3023
1arun Bhatla
ead tbhatiaorisil.oom +91 (22) 6691 3226
Amlt Mlshra ammishraorisil.oom
blvya Murall ddevallaorisil.oom
5udhlr Narayan snarayanorisil.oom
5 vljaykumar svijayorisil.oom
1 Raj 5ekhar trajsekharorisil.oom
N Renganayakl nrenganayakiorisil.oom
Mukesh Agarwal
Uireotor magarwalorisil.oom +91 (22) 6691 3035
Maya vengurlekar
ead mvengurlekarorisil.oom +91 (22) 6691 3130
5achln Guta
ead sguptaorisil.oom +91 (11) 4250 5108
varsha 1ahlllanl vtahilianiorisil.oom
ANAL1lCAL C0N1AC15
BU5lN55 bvL0PMN1
beslgn and Preductlen
Uisolaimer
CRl3lL has taken due oare and oaution in preparing this report. lnformation has been obtained by CRl3lL from souroes whioh it oonsiders
reliable. owever, CRl3lL does not guarantee the aoouraoy, adequaoy or oompleteness of any information, and is not responsible for any
errors in transmission, and espeoially states that it has no finanoial liability whatsoever to the subsoribers / users / transmitters /
distributors of this report.
Nopart of this report may be reproduoedinany form or any means without permissionof the publisher.
Contents may be usedby news mediawith due oredit toCRl3lL.
CRl3lL. All rights reserved.
f0f0N0f0
CRl3lL is proud to bring to you the inaugural issue of lndia's 1op 50 Miorofinanoe lnstitutions. 1he publioation presents an overview of
leading players in lndia's miorofinanoe institution (Mll) spaoe. 1he first issue inoludes an added attraotion our oommentary, 'Mlls: A
0rowing BreedinanLvolving Market', analysing the key strengths andohallenges of players inthe seotor.
1he publioation is part of CRl3lL's enabling role in the struotured evolution of the Mll seotor. we provide independent, insightful, and
reliable riskassessment servioes tohelp investors, lenders, andMlls manage andmitigate business andoredit risks.
CRl3lL launohed Mll grading in 2002, beooming the world's first mainstream rating agenoy to develop a separate methodology and soale
to assess Mlls. 3inoe then, we have assessed more than 140 Mlls, and established ourselves as the leading rating agenoy in the lndian
miorofinanoe spaoe. ln addition to Mll grading and risk assessment servioes, we offer ratings on the Mlls' bank faoilities and
seouritisation transaotions we are lndia's first agenoy to have rated the bank loans of Mlls, and seouritisation transaotions involving
miorofinanoe loanreoeivables.
CRl3lL has experienoe in assessing Mlls of diverse legal forms, lending models, and sizes, aoross the oountry. 0ur insights, gleaned from
our vast and varied experienoe, reveal that growth in the miorofinanoe seotor has been driven by an inorease in investor interest in Mlls
over the past oouple of years: equity investments have resulted in signifioant growth in the size of Mll balanoe sheets. As this publioation
indioates, we believe strong business growth, improving geographio diversity, growing earnings, and healthy asset quality, are the key
strengths of lndia's Mlls. 0n the other hand, dependenoe on finanoial institutions for funds, the politioal sensitivity of matters relating to
interest rates, pressure onprooesses andoontrols due to aggressive growth strategies, andweak governanoe arohiteoture, are among the
seotor's ohief ohallenges.
we leverage our large network of assooiates to reaoh out to stakeholders in the miorofinanoe seotor aoross the oountry, to ensure a wide
dissemination of information and oredit opinions on players in the seotor to users like you. we hope this publioation will provide you useful
insights onthe lndianmiorofinanoe seotor.
we weloome your feedbaok: dofeel free towrite tous at orisilsmeratingsorisil.oom.
Ramanuberoi
3enior Uireotor, CRl3lL Ratings
MFls: A Grewlng Breed ln an velvlng Market
Number5eak
lndla's Leadlng MFls
A Brlef Preflle ef the 50 Largest MFls ln lndla (ln alhabetlcal erder)
Glessary
01
01
09
59
00l0l8
Nfl8. 6f0Nl 8f000 l 8 l90l9l N8fk0l
1
1his bill, whioh envisages the regulationof the miorofinanoe seotor, is under the Parliament's oonsideration.
2
1he number of households faoing exolusion has been arrived at by adding rural households faoing finanoial exolusion (93 million) and urban below-
poverty line (BPL) households (18million). 1he average oredit demandper householdhas beenestimatedat Rs.10,000per annum.
3
National Bank for Agrioulture and Rural Uevelopment, 3mall lndustries Uevelopment Bank of lndia, Rashtriya Mahila Kosh and lriends of women's
worldBanking are the apex Mlls inlndia.
1he poor and vulnerable oontinue to faoe a dearth in banking lends to a group of 10 to 20 women. under the 30-bank linkage
and finanoial servioes in lndia - CRl3lL pegs the number of model, an N00 promotes a group and gets banks to extend loans
households faoing finanoial exolusion in the oountry at around to the group. under the 1L0 model, loans are extended to, and
120 million. 0ver the past deoade, miorofinanoe has played an reoovered from, eaoh member of the group (unlike under the 30
important role in filling this gap. Miorofinanoe institutions (Mlls) model, where the loan is extended to the group as a whole). 1he
are uniquely positioned to faoilitate finanoial inolusion, and most popular 1L0 models are the 0rameen Bank model
provide finanoial servioes to a olientele poorer and more (developed by 0rameen Bank, Bangladesh) and the A3A model
vulnerable than the traditional bank olientele. 1here is no (developed by A3A, a leading Bangladesh-based N00-Mll). Most
oomprehensive regulatory framework for the miorofinanoe of the large Mlls inlndiafollowahybridof the group models.

seotor in lndia: Mlls exist in many legal forms. Many mid-sized
1he model of lending to individuals is similar to the retail loan
and large Mlls are, however, aoquiring and floating new
finanoing model of banks. ln lndia, Mlls adopting the group-
oompanies to get registered as non-banking finanoial
lending models extend individual loans to more suooessful
oompanies (NBlCs), whioh will help them aohieve soale.
borrowers who have oompleted a few loan oyoles as part of a
group (who have relatively large oredit requirements and good
1he term miorofinanoe refers to small-soale finanoial servioes -
repayment traok reoord). Corporates and oooperatives, typioally
both oredit and savings -- that are extended to the poor in rural,
dairy farms and sugar mills, are also known to undertake
semi-urban, and urban areas. 1he poor need miorofinanoe to
miorofinanoe by extending oredit to farmers, this helps the
undertake eoonomio aotivity, smoothen oonsumption, mitigate
oompanies strengthen their proourement and distribution
vulnerability to inoome shooks (in times of illness and natural
networks.
disasters), inorease savings, andsupport self-empowerment.
Mlls are also differentiated on the basis of their loan repayment
Miorooredit is the most oommon produot offering. Miorofinanoe
struotures. Most Mlls following the 1L0 model adopt the weekly
in lndia is synonymous with miorooredit, this is beoause savings,
and fortnightly repayment struoture, those under the 30 model
thrift, and mioro insuranoe oonstitute a minisoule segment of
have a monthly repayment struoture. Mlls lending to traders in

the miorofinanoe spaoe. ln lndia, most miorofinanoe loans are in
market plaoes also offer daily repayment, while Mlls extending
the range of Rs.5,000 to Rs.20,000 (the Uevelopment and
agrioultural loans have bullet- and oash-flow-based repayment
1
Regulation Bill, 2007 , defines miorofinanoe loans as loans with struotures depending onthe orop patterns.
amounts not exoeeding Rs.50,000 in aggregate per
Mlls following the 1L0model oharge flat interest rates of 12to 18
individual/small enterprise). CRl3lL estimates that around 120
per oent on their loans, while Mlls following the 30 model
million households in lndia oontinue to faoe finanoial exolusion:
2
oharge 18 to 24 per oent interest per annum based on the
this translates intoaoredit demandof aroundRs.1.2trillion .
reduoing balanoe method. ln addition to interest rates, some
Mlls also oharge a prooessing fee oomprising a oertain Mlls are the main players in the miorofinanoe spaoe in lndia,
proportion of the loan amount sanotioned, at the time of their primary produot is miorooredit. 0ther players that extend
disbursement. miorofinanoe servioes, in addition to their oore businesses,
inolude banks and insuranoe oompanies, agrioultural and dairy
Most Mlls in lndia are solely engaged in extending miorooredit: a
oo-operatives, oorporate organisations suoh as fertiliser

fewalso extend saving/thrift, insuranoe, pension, and remittanoe
oompanies and handloom houses, and the postal network.
faoilities. lor providing insuranoe faoilities, Mlls have tied up with
Additionally, there are speoialised lenders, oalled apex Mlls that
3
insuranoe oompanies and mutual networks (funds oreated by
provide both loans andoapaoity building support toMlls .
oommunity-owned organisations), some Mlls also do
underwriting ontheir own.
Mlls differ from one another interms of:
Lending model Mlls offer savings servioes in two ways the savings are either
Loanrepayment struoture oolleoted by the Mll or the 30. ln the latter method, the Mll or
Mode of interest rate oaloulation
N00 enoourages the 30 to oolleot savings/thrift from eaoh
Produot offerings
member of the group on a weekly/monthly basis and rotate
Legal struoture
the savings/thrift among members. An Mll oolleoting savings
from borrowers may either make it oompulsory for
ln terms of lending model, Mlls may be olassified as lenders to
borrowers/members to have savings with it, or offer voluntary
groups or as lenders to individuals. ln lndia, Mlls usually adopt
savings servioes to both members/non-members. 0nly Mlls
the group-based lending models, whioh are of two types the
registered as oooperatives or depositing NBlCs oan oolleot
self-help group (30) model and the joint-liability group
savings/deposits, a few Mlls registered as sooieties and trusts
(1L0)/solidarity group model. under the 30 model, an Mll
1R MlCR0FlNANC MARK1 ANb l15 PAR1lClPAN15
1R blFFRN1lA1lNG FAC10R5 0F MFls
lndia 1op 50 Miorofinanoe lnstitutions 01
oontinue to aooept savings/deposits, and thus faoe regulatory struoture, finanoial performanoe, and funding stability.
risks (for more details, refer seotion on Absenoe of regulatory Uistribution is not biased by the age of an institution. 3everal
oontrol). relatively young Mlls are in the upper braoket, and a nearly
equal number of older Mlls are still in the lowest grade
with respeot to legal struoture, Mlls may be olassified as
braoket, despite having beeninoperationfor several years.
follows:
Net-fer-reflt MFls
3ooieties (suoh as Bandhan, Rashtriya 3eva 3amithi,
and0ram utthan)
Publio trusts (suoh as 3hri KshetraUharmasthalaRural 5treng buslness grewth, lmrevlng geegrahlc dlverslty
1he miorofinanoe market in lndia is expeoted to grow rapidly,
Uevelopment Projeot, and Community Uevelopment
supported by the 0overnment of lndia's (0ol's) initiatives to
Centre)
Non-profit oompanies (suoh as lndian Assooiation for aohieve greater finanoial inolusion, and growth in the oountry's
3avings andCredit, andCashpor MioroCredit) retail seotor. Mlls have a grass-root level reaoh and
understanding of the eoonomio needs of the poor. 1he growing
Mutual beneflt MFls
retail market in lndia provides opportunities for Mlls to aot as
Co-operatives registered under 3tate or National Aots
intermediaries in the retail supply ohain. 1he banking seotor will
(suoh as Pustikar Laghu vyaparik Pratisthan Baohat
also help the miorofinanoe seotor grow - banks are expeoted to
and3akh 3ahkari 3amiti Limited)
Mutually-aided oo-operative sooieties (MAC3, suoh as use Mlls to meet their finanoial inolusion targets by allowing Mlls
3ewa Mutually Aided Cooperative 1hrift 3ooieties to open bank aooounts, and distribute finanoial servioes and
lederationLtd) other struoturedproduots.
Fer-reflt MFls
1he miorofinanoe seotor has passed its evolutionary phase, when
Non-banking finanoial oompanies (NBlCs, suoh as
the profit-oriented working model of Mlls was peroeived by the
Bhartiya 3amruddhi linanoe Ltd, 3hare Miorofin Ltd,
market as exoeptionable, aooeptanoe for the same has inoreased
3K3 Miorofinanoe Ltd and 3pandana 3phoorthy
gradually. Also, investors now have a wider ohoioe of Mlls with
linanoials Ltd)
soalable prooesses. N00-Mlls have been aoquiring dormant
Produoer oompanies (suoh as 3ri vijaya visakha Milk
NBlCs for regulatory, finanoial, and operational reasons. Many
Produoers CoLtd)
large players are now fooused on urban miorofinanoe, and have
Looal area banks (the only suoh Mll is Krishna Bhima
begunextending loans toindividuals.
3amruddhi Looal AreaBank)
1he miorofinanoe seotor and Mlls in lndia are estimated to have
CRl3lL provides risk assessment and diagnostio servioes to outstanding total loans of Rs.160 to Rs.175 billion, and Rs.110 to
measure, manage, and mitigate Mlls' business, finanoial, Rs.120 billion, respeotively, as on Maroh 31, 2009. 1he
and governanoe risks. CRl3lL's grading of Mlls refleots its miorofinanoe seotor in lndia is fragmented - there are more than
assessment of their ability to oonduot operations in a 3,000 Mlls, N00s, and N00-Mlls, of whioh about 400 have
soalable and sustainable manner, and is not an opinion on aotive lending programmes. 1he top 10 Mlls are estimated to
their debt-repayment oapability. CRl3lL assigns grades on aooount for around 74 per oent of the total loans outstanding for
an eight-point soale, with 'mfR1' being the highest and 'mfr8' Mlls, around 17 Mlls had outstanding loans of more than Rs.1
the lowest. A high grade denotes a greater degree of billion as on Maroh 31, 2009, with the top three Mlls orossing
soalability and sustainability. CRl3lL uses its proprietary Rs.10billioninterms of outstanding loanportfolioonthat date.
MlCR03 methodology to evaluate Mlls' management,
As on Maroh 31, 2009, CRl3lL estimates Mlls' outstanding loans
institutional arrangement, oapital adequaoy and asset
to have inoreased to Rs.114 billion (refer Chart 1) from Rs.60
quality, resouroes and asset liability management,
billion a year ago. 1he growth in disbursements by Mlls was more
operational effeotiveness, and soalability and sustainability.
than that of the 30-bank linkage programme during 2007-08
1his grading soale applies globally and has no sovereign or
(refers to finanoial year, April 1to Maroh 31), Mlls' disbursements
oountry riskassessment oonstraints.
have inoreased aggressively, at a oompound annual growth rate
CRl3lL has oompleted 215 assessments as on Maroh 31, (CA0R) of 90 per oent, over the past four years. CRl3lL estimates
2009 (of 132 Mlls), these inolude most of the large and the overall disbursements during 2008-09 to be around Rs.287
prominent players. Currently, about 47 per oent of Mlls billion, of whioh disbursements of Rs.185 billion were made by
qualify for a grade of 'mfR4' or higher, and no Mll has been Mlls (refer Chart 2). 1his is refleotive of the inoreasedaooeptanoe
assigned 'mfR1'. 1he median grade of 'mfR4' refleots a of Mlls as oommeroially viable andtheir resultant ability toattraot
satisfaotory level of management quality, governing board oapital andresouroes during the past twoyears.
K 51RNG1R5 0F lNblAN MFls
CRl5lL'5 C0vRAG 0F MlCR0FlNANC 5C10R
0Z lndia 1op 50 Miorofinanoe lnstitutions
distriots of Andhra Pradesh. 1his was triggered by the looal
administration of Krishna Uistriot in Andhra Pradesh ordering an
enquiry into the high interest rates oharged by some Mlls in the
distriot, and olosing of a few branohes of these Mlls for a brief
period. 1his impaoted the loan portfolios of Mlls not only in
KrishnaUistriot, but alsointhe neighbouring distriots.
Among Mlls, 3eotion 25 oompanies and oo-operatives tend to
have average risk management praotioes, these entities,
therefore, have typi oal l y hi gher del i nquenoy l evel s.
3ooieties/trusts have demonstrated good oolleotion effioienoy
supported by the oredit-plus initiatives provided by this segment.
Most Mlls are N00-Mlls, whioh were set up to promote sooial
development, and subsequently began extending finanoial
intermediation to ensure sustained livelihood for members.
1hese sooial development aotivities and long relationships with
borrowers enhanoe the N00-Mlls' influenoe over borrowers, and
oonsequently, their repayment effioienoy andasset quality.
1able 1: Movement in ourrent portfolio aoross different legal
A majority of Mlls, inoluding the larger players, operated mainly
struotures (inper oent)
in 3outh lndia till 2005-06. 3inoe 2006-07, however, the large
Mlls have extended their presenoe to states suoh as
Maharashtra, Chhattisgarh, 0rissa, 1harkhand, and west
Bengal, over the past two years, the larger Mlls have
established pan-lndia ooverage. 1he growth of the miorofinanoe
seotor in eastern lndia was driven primarily by oapaoity
enhanoement initiatives by the apex Mlls, andtapping of growth
opportunities in the eastern market by 3outh-lndia-based Mlls,
and banks. Many of the large Mlls, nevertheless, oontinue to
have asignifioant exposure to3outh lndia.
1he Mlls' ourrent portfolio has improved on aooount of several
faotors. Mlls' business volumes improved by around 46 per oent
Realthy asset quallty
during the first half of 2008-09 over 2007-08. Uisbursements
Mlls' asset quality, indioated by their ourrent portfolio, and the
inoreased at a CA0R of 90 per oent, and the loan portfolio by 81
portfolio at risk (PAR) by more than 30 days, has improved (refer
per oent, over the past three years. 1he oolleotion effioienoy of
Chart 3), and is healthier than those of other finanoial servioe
Mlls was supported by a loan waiver soheme in 2008-09, unlike
players in lndia. Mlls have maintained relatively healthy asset
in 2007-08, when most miorofinanoe portfolios were transferred
quality mainly beoause of strong group pressure and effioient
by Mlls registered as sooieties and trusts to NBlCs, with overdue
oolleotion meohanisms, whioh have ensured high repayment
4
loans retained with the sooieties and trusts, oonsequently, the
rates. 1he 'ourrent portfolio ' improved signifioantly during the
asset quality appears to have improved. Most delinquent loans in
first half of 2008-09 over the oorresponding period in 2007-08
2006 in Krishna and the adjoining distriots were managed by
and was at similar levels before Maroh 2006. Uelinquenoies
Mlls for aleading private seotor bank. 1he bank didnot invoke the
inoreased during 2005-06 and 2006-07 as many leading Mlls
loan default guarantee and sinoe 2007-08, the Mlls have
were impaoted by non-repayment by borrowers in some ooastal
stoppedtraoking these overdue loans.
Chart 3: 1rend ln asset quallty
80
85
90
95
100
0
1
2
3
4
5 98.7
97.8
95.7
88.1
1.1
3.9
1.8
2.1
Mar - 06 Mar - 07 Mar - 08 3ep - 08
Current portfolio PAR>30 days
4
1he ourrent portfolio is the outstanding amount of all loans as on a partioular date, with no interest and prinoipal overdues.
Chart 1: Grewth 1rend
Borrowers Loan o/s
Mar-06 Mar-07 Mar-08 Mar-09 (L)
0
25
50
75
100
125
0
3
6
9
12
15
18
3
5
9
16
114
60
32
16
R
s
.

b
i
l
l
i
o
n
N
o
.

m
i
l
l
i
o
n
5eurce: lndustry, NABARb, CRl5lL estlmates
Chart 2: 1rend ln dlsbursements
0
50
100
150
200
250
300
350
287
185
102
88
95
183
110
66
44
27
45
72
45
30
15
2004-05 2005-06 2006-07 2007-08 2008-09(L)
30-bank linkage Mlls 1otal
R
s
.

b
i
l
l
i
o
n
5eurce: lndustry, NABARb, CRl5lL estlmates
lndia 1op 50 Miorofinanoe lnstitutions 0J
Legal 5tatus 5et-08 Mar-08 Mar-01 Mar-06
Companies 98.78 97.84 94.49 85.23
3ooieties/1rusts 98.87 98.73 98.90 98.27
Co-operatives 96.48 96.28 97.79 89.21
3eotion25Mlls 96.25 93.13 92.14 87.11
Current ertfelle 98.68 91.11 95.13 88.11
033 ratios (despite low gross interest spreads of 6 to 9 per oent)
that were oomparable to those of Mlls that have adopted the 1L0
model (these have gross interest spreads of 10 to 15 per oent).
CRl3lL believes that ability to oontinue oross-subsidising
miorofinanoe programmes will determine whether Mlls that have
adopted the 30 lending model oan maintain 033 ratios of more
than115per oent.
CRl3lL believes that the overall asset quality of Mlls will
deteriorate marginally over the short to medium term, owing to
inorease in large-tioket loan disbursements, multiple lending and
migrationof borrowers. owever, Mlls' asset quality is expeotedto
remainsuperior toasset olasses suohas vehioleloans, oredit oard
reoeivables, andsmall-tioket personal loans(31PL).
Mlls are expanding their borrower profile and operations in new
territories (the borrower base has grownat aCA0Rof 50per oent
over the past four years), this exposes Mlls' asset quality to
oredit and operational risks. 1he larger players oan absorb oredit
losses beoause of improved profitability, the asset quality of
smaller players, however, may be adversely affeoted. Around 50
per oent of the inoremental growth in the number of borrowers is
likely to oome from the urban areas. 1he urban regions are more
impaoted by weakening in maoroeoonomio environment. 1his
may add to Mlls' asset quality pressures. Moreover, Mlls have
sought to attraot higher valuations, even by slaokening their
provisioning praotioes. CRl3lL believes that this may impaot their
sustainability over the long run.
lmrevlng earnlngs reflle
lmprovement in lending rates, in branoh and employee
produotivity, and inoreasing effioienoies on aooount of growth in
loan portfolios, have helped Mlls of all oategories enhanoe their
5
operating self-suffioienoy (033 ) ratios. CRl3lL believes that
Mlls' 033 ratios will inorease over the medium term, this is
N00-Mlls are more sensitive than other Mlls to inoreases in oost
beoause Mlls (partioularly the large ones) have inoreased
of borrowings. CRl3lL believes that N00-Mlls will be foroed to
lending rates, with several players also oharging upfront
inorease prooessing fees and lending rates to oompensate for
prooessing fees.
inoreases inborrowing oosts.
Mlls adopting the 1L0 lending model have higher lending rates,
and, therefore, higher 033 ratios than those adopting the 30
5teady access tecaltal
model. 1he effeotive interest rates of Mlls adopting the
As 1able 2 indioates, the proportion of over-leveraged Mlls has
0rameen/A3A lending models range from25 to 40 per oent. 1he
reduoed oonsiderably in reoent months, nevertheless, given
seotor-wide 033 ratio deolined in 2006-07 (refer Charts 5 and 6),
Mlls' aggressive growth plans, CRl3lL believes that steady aooess
as several leading Mlls in Andhra Pradesh reduoed lending rates
to oapital will remain a key ohallenge for lndia's Mll seotor over
in early 2006, however, when these and other Mlls inoreased
the medium term.
lendingratesin2007and2008, their 033ratiosimproved.
Capital infusions and internal aooruals have helped most Mlls
Many Mlls that follow the 30 lending model are sooieties and
enhanoe their net worth over the past two years. 0f the top 50
trusts (N00-Mlls), their miorofinanoe programmes are mostly
Mlls, 25 had a net worth of over Rs.50 million as on 3eptember
oross-subsidised by their other developmental programmes.
30, 2008, as against only seven as on Maroh 31, 2006, similarly,
1heir operating expense ratios, therefore, remained low (at 2 to
the number of Mlls with net worth of more than Rs.250 million
5 per oent) during 2007-08, this helped these Mlls maintain
inoreased to eight from two over the same period. As a result of
CRALLNG5 F0R MlCR0FlNANC lNbU51R
Chart 4: bellnquencles and revlslenlng
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Mar - 06 Mar - 07 Mar - 08 3ep - 08
0.8 1.1
0.9
1.5
3.9
1.8
2.1
PAR> 30 days Provisioning
0.8
Chart 6: 1rend ln 055 (based en lendlng medel)
2005-06 2006-07 2007-08 2008-09(6m)
30 1L0 Uiversified
0
20
40
60
80
100
120
140
107
118
110
114
108
114
117
118
119
126
137
117
5
Uefined as ratio of total inoome to total expense. lt does not inolude revenue grants reoeived and expenses out of revenue grants.
04 lndia 1op 50 Miorofinanoe lnstitutions
Chart 5: 1rend ln 055 (based en legal structure)
2005-06 2006-07 2007-08 2008-09(6m)
Companies 3ooieties & 1rusts Co-op sooieties 3eotion 25 Cos.
0
20
40
60
80
100
120
140
122
105
113
77
110
115
107
92
118
124
113
102
135
139
110 105
improvement innet worth, the peroentage of Mlls (withinthe top Charts 7 and 8) as against only 10 per oent for Mlls following the
50 oategory) with a very high leverage (of more than 15 times) 1L0model, as on Maroh 31, 2008. 1hus N00-Mlls (sooieties and
has deolined to 22 per oent as on 3eptember 30, 2008, from 57 trusts) have better aooess to funds from P3Bs than Mlls that are
per oent as onMaroh 31, 2006(refer 1able 3). oompanies. owever, this soenario of P3Bs lending
predominantly to 30 model based Mlls seems poised for
1able 2: Leverage levels of 1op 50Mlls (inper oent)
ohange, with the larger NBlCs oontinuing to aggressively target
P3Bs tomeet their oredit demands.
Mlls registered as 3eotion 25 oompanies were more leveraged

(refer 1able 3) - with a gearing of 17 to 22 times over the past
three years - than other Mlls, this along with the the limited
flexibility of these 3eotion 25 oompanies to raise oapital, may
oonstrain their growth. NBlC-Mlls have maintained a gearing of
5to8times over the past three years. CRl3lL believes that NBlC-
Mlls will remain less leveraged than non-NBlC-Mlls beoause of
the Reserve Bank of lndia's (RBl's) requirement that
6
systemioally-important , non-deposit taking NBlCs (NBlC-NU-
7
3ls) maintain a minimum oapital adequaoy ratio (CAR) of 10per
oent. Reoent rounds of oapital infusion have helped NBlC-Mlls
Absenceef regulatery centrel
reduoe gearing despite high growth in their asset base. Non-
Miorofinanoe aotivities are undertaken by organisations that are
profit Mlls and oo-operatives, on the other hand, reduoed their
registered under several legal forms. owever, ourrently, only
gearing on the baok of improved internal aooruals, oonversion of
NBlCs are under the regulatory and supervisory purview - the
seourity deposits to oapital (oo-operatives only) in 2007-08, and
NBlCs are regulated by RBl. 1he absenoe of prudential norms and
reduoed borrowing beoause of laok of availability of funds in the
aooountingguidelines for non-NBlCMlls leads tolaokof uniformity
first half of 2008-09.
in aooounting praotioes and highly-leveraged balanoe sheets
among Mlls. 1he finanoial statements of the miorofinanoe 1able 3: Leverage levels of 1op 50Mlls (legal status wise)
programmes of most non-NBlC Mlls do not provide the true
finanoial pioture. CRl3lL, therefore, makes analytioal adjustments
in its assessment of Mlls. 1here was a proposal by 0ol to bring in
legislation in 2006 to regulate the entire miorofinanoe seotor in
lndia, theregulation, however, isyet tomaterialise.
3avings is an important oomponent of miorofinanoe. Currently,
however, savings and deposit servioes oan be offered only by
banks and oo-operatives. NBlCs oan raise deposits only after
Reavy deendenceen banks and flnanclal lnstltutlens (Fls)
obtaining a lioense from RBl and meeting norms (suoh as having
Mlls are dependant on borrowings from banks and lls, and do
an investment-grade oredit rating). 1rusts and sooieties
not raise debt from the oapital market. 1hus, large NBlC-Mlls
(uninoorporated bodies) oannot aooept savings/deposits as per
faoe higher oosts of borrowing than most large retail finanoe
3eotion 453 of RBl Aot, 1934. CRl3lL's aotive role in highlighting
NBlCs in the oountry. Banks oategorise their lending to Mlls as
the regulatory risks involved in allowing N00-Mlls to oolleot
priority seotor advanoes, whioh has helped Mlls raise timely
savings/deposits has resulted in several large and mid-sized
resouroes. Nevertheless, for many Mlls, funding souroes are
Mlls oeasing tomobilise of savings anddeposits.
restrioted to private banks and apex Mlls, the publio seotor
banks have not been aggressive lenders to Mlls. 1he large and
A few N00-Mlls and non-N00-Mlls oontinue to offer in-house
mid-sized Mlls and NBlC-Mlls primarily borrow from private
insuranoe faoilities by underwriting ontheir own, although this is a
and foreign banks, while the smaller Mlls borrow mainly from
olear violationof insuranoe regulations.
private banks andapex lenders.
Pelltlcal sensltlvlty ef lnterest rates
1he lending model plays a key role in determining an Mll's
8
ln April 1999 , RBl issued a oiroular allowing Mlls to fix interest
borrowing profile. Publio seotor banks (P3Bs), with their
rates on the loans they extend. owever, interest rates oharged to
widespread branoh networks, prefer lending direotly through the
the poor oonstitute a politioally-sensitive issue, and therefore, a
30-bank linkage route. Moreover, P3Bs prefer to lend to those
ohallenging proposition for Mlls. Although aots pertaining to
Mlls that have adopted the 30 model, P3Bs aooounted for 36
money-lending and usurious loans in the states speoify interest
per oent of the total borrowings of sooieties and trusts (refer
rate oeilings, these are applioable largely to sooieties and trusts.
bebt,Net werth(tlmes) 5e-08 Mar-08 Mar-01 Mar-06
>15 22 34 54 57
10-15 12 14 13 2
7-10 26 22 6 6
5-7 22 10 2 4
<5 18 20 25 31
bebt,Net werth(tlmes) 5e-08 Mar-08 Mar-01 Mar-06
Companies 6.6 5.8 7.5 7.8
1rusts andsooieties 11.8 14.2 21.0 20.0
3eotion25oompanies 17.4 21.8 19.6 17.7
Co-operatives 5.1 5.9 17.1 14.5
0verall 1e 50MFls 1.2 1.2 10.4 9.9
6
All non-deposit NBlCs with an asset size of Rs.1 billion are oonsidered as systemioally important by RBl
7
1o inorease to 12 per oent by Maroh 31, 2010, and 15 per oent by Maroh 31, 2011
8
RBl Ciroular RPCU.No. PL.BC. 94/04.09.01/98-99 dated April 24, 1999
Chart 1: Berrewlng reflle (based en lendlng medel)
36
30
10
20
4
19
30
35
10
6
8
34
28
20
10
30 1L0 Uiversified
P3Bs Pvt. Banks loreign Banks Apex Mlls 0thers
0
20
60
40
80
100
as en Mar 31, 2008
0ver the past five years, Mlls, espeoially in Andhra Pradesh, Moreover, some Mlls, partioularly N00-Mlls, oontinue to faoe
1amil Nadu, and Karnataka, have often been aooused of ohallenges in striking a balanoe between their sooial and
oharging exoessively high interest rates, and have been targeted business goals, two seemingly oonflioting objeotives. 1his often
by looal distriot administrations. results in poor internal oontrol systems, laok of aooountability,
andsuboptimal performanoe.
0iven Mlls' operating and oost struotures, most Mlls need to
ohargehighinterest ratestoreoover oostsandremaininbusiness. CRl3lL believes that the relatively new sheen that miorofinanoe
CRl3lL believes that interest rates oan be moderated by ensuring has aoquired in lndia as an eoonomioally viable (even moderately
effeotive oompetition and proper disolosure of lending rates by profitable, soalable, and sustainable) lending aotivity, applies
Mlls. 3a-dhan, the industry assooiation, has suggested a only to a few Mlls that are typioally struotured as NBlCs with
voluntary mutual oode of oonduot under whioh Mlls provide notable partioipation from international private equity funds.
information regarding interest rates and other oharges to olients. Many Mlls are new and have begun operations on a relatively
1hough many Mlls highlight only the flat interest rates and olean slate, foousing on establishing a strong board, and internal
prooessing fees, a few Mlls did mention the effeotive interest oontrol systems.
ratesintheir borrowers' passbooksasonMaroh31, 2009.
with donor and grant-funds drying up, and related voluntary
Pressureen recesses and centrels dueteaggresslvegrewthlans
servioes dwindling, miorofinanoe has beoome a key aotivity for
CRl3lL believes that poor management of operations may pose
several N00-Mlls in lndia. owever, their managements have not
added oredit risks for Mlls, espeoially as Mlls oontinue to soale
adapted and equipped themselves adequately to manage this
up operations aggressively. Mlls' risk management praotioes
evolution, with the result that governanoe, disolosure, and
have weakened over the past oouple of years, on aooount of a
aooountability have suffered in many oases. 1he boards of these
shift in foous towards business growth and network expansion.
organisations oontinue to have a strong developmental and
3ome oredit sanotion and monitoring praotioes have been
sooial projeot bias, and limited miorofinanoe or banking
diluted. 1hese inolude lending to olients with multiple loans from
experienoe. 1hey typioally oomprise ohief exeoutive offioers of
different Mlls, reduotion in the average waiting period for loans,
other N00s, sohool teaohers, aoademios, parish priests, and
and doing away with staggered disbursements to 1L0s and loan
other prominent members of the looal oommunities. while the
utilisation oheoks post disbursement. Rapid expansions to new
oontributions of suoh members are oritioal in guiding the Mlls'
geographies have also put pressure on the internal oontrol
sooial objeotives, the preponderanoe of suoh members on a
meohanisms and audit funotion, as these have not reoeived
board, to the virtual exolusion of members with banking or
adequate foous inthe past twoyears.
aooounting experienoe, means that Mlls often find it diffioult to
adhere to oommeroial and systematio lending aotivities, suoh as
Nevertheless, there has been some improvement in Mlls'
foousing onatimely reoovery of loans.
operations: this inoludes installation of software for monitoring
loans, upgrade in oash management servioes, and availability of
CRl3lL believes that unless these N00-Mlls restruoture their
banking faoilities to Mlls operating in rural and semi-urban
boards and management to drive a reasonable oommeroial
areas. Many small and mid-sized Mlls have also benefited from
orientation into their operating philosophy and mission, the
the teohnioal support, suoh as dooumentation of internal
attendant benefits of good internal oontrol systems and
polioies and prooess mapping, with oapaoity-building support,
transparenoy are unlikely to materialise. 1his will ultimately
partioularly from apex Mlls.
hinder the sustainability of their operations.
3trong internal audit and oontrol has been the key differentiator
between Mlls with a high grading and those with lower grading.
lunding (both equity and debt) will not be a oonstraint for the large
CRl3lL believes that Mlls will need to restruoture their internal
playersinlndia'smiorofinanoeseotor. 1heleverageratioisexpeoted
audit and oontrol prooesses to minimise operational risks during
to remainadequate for the larger NBlC-Mlls (whiohare regulated),
the growth phase.
as most of these entities are able to raise oapital. Most mid-sized
Mlls are in a prooess of ohanging their legal struoture. 1he overall
Weak gevernancearchltecture
asset quality of Mlls is healthy, however, this is expeoted to deoline
1he legal struoture and the attendant regulatory requirements
marginally. Many small and mid-sized Mlls will oontinue to faoe
of an Mll have a strong bearing on governanoe praotioes
resouroe oonstraints in 2009-10 beoause of their high gearing.
beoause they influenoe management praotioes and levels of
Borrowing oosts may remain high due to heavy dependenoe on
transparenoy. All legal struotures, other than the formal
institutional borrowings: Mlls are exploring other resouroe-
oompany struoture, suffer for want of adequate regulations and
mobilising options suoh as seouritisation. Mlls' profitability may
disolosure standards. 1his also oreates a virtuous/vioious oyole
improve marginally in 2009-10 on the baok of inoreasing lending
phenomenon: Mlls that have the willingness and minimum
ratesandfee-basedinoome.
oapital funds to embraoe a oorporate struoture as an NBlC
attraot outside investors more easily, whioh in turn fosters better
CRl3lL believes that the key faotors that oan drive suooess for
governanoe and disolosure standards. ln oontrast, Mlls that are
Mlls are robust systems, and prooesses, and effioienoy and
either unable (for laok of adequate sponsor funding) or unwilling
produotivity levels, maintaining asset quality, prevention of oredit
to oonvert to a oorporate struoture tend to remain 'olosed' to
losses and oapital erosion, and remaining adequately oapitalised
transparenoy and improved governanoe standards, and
tofundgrowth plans.
therefore, oontinue tobe unable toattraot oapital.
C0NCLU5l0N
80M00f$08k
1 3K3 Miorofinanoe 3eounderabad, Pvt. Ltd.
Ltd (3K3MPL) Andhra Pradesh Company (NBlC) 1L0 1,413 18,227 25,90,950 2,395 23.40 126.49 99.14 7.37
2 3pandana 3phoorty yderabad, Publio Ltd. 1L0,
linanoial Ltd (33lL) Andhra Pradesh Company (NBlC) individual 696 11,987 1,668,807 1,225 27.43 132.02 98.88 7.04
3 3hare Miorofin Limited (3ML) yderabad, Publio Ltd. 1L0,
Andhra Pradesh Company (NBlC) lndividual 666 8,568 1,231,556 1,448 27.49 152.45 99.32 5.03
4 Asmitha Miorofin Ltd (AML), yderabad, Publio Ltd.
Andhra Pradesh Company (NBlC) 1L0 363 4,944 694,350 475 17.43 121.04 99.80 9.92
5 3hri Kshetra Uharmasthala,
3hri Kshetra Uharmasthala
Rural Uevelopment Projeot Uharmasthala,
(3KURUP) Karnataka 1rust 30 22 4,060 612,482 157 12.02 100.46 99.68 29.81
6 Bhartiya 3amruddhi yderabad, Publio Ltd.
linanoe Limited (B3lL) Andhra Pradesh Company (NBlC) Uiversified 87 3,882 457,668 317 17.89 108.97 99.00 11.59
7 Bandhan Kolkata,
west Bengal 3ooiety 1L0 385 3,389 851,713 435 26.32 175.40 99.92 7.07
8 Cashpor Mioro Credit (CMC) varanasi, 3eotion 25
uttar Pradesh Company 1L0 247 1,431 303,935 93 28.78 109.71 98.00 14.72
9 0rama vidiyal Mioro 1iruohirappalli, Pvt. Ltd.
linanoe Pvt Ltd (0vMlL) 1amil Nadu Company (NBlC) 1L0 126 1,316 288,311 231 32.46 141.53 99.54 4.95
10 0rameen linanoial Bangalore, Pvt. Ltd.
3ervioes Pvt Ltd (0l3PL) Karnataka Company (NBlC) 1L0 62 1,287 153,453 127 18.77 106.41 99.98 10.51
11 Madura Mioro Chennai , Publio Ltd.
linanoe Ltd (MMlL) 1amil Nadu Company (NBlC) 30 46 1,223 188,000 321 19.51 152.91 99.57 2.26
12 B33 Miorofinanoe Bangalore, Pvt. Ltd.
Pvt Ltd (BMPL) Karnataka Company (NBlC) 1L0 51 1,157 159,886 166 29.53 147.26 99.99 6.36
13 Lquitas Mioro linanoe Chennai, Pvt. Ltd.
lndia P Ltd (Lquitas) 1amil Nadu Company (NBlC) 1L0 36 1,007 108,352 630 20.52 93.11 100.00 1.00
14 Bandhan linanoial Kolkata, Pvt. Ltd.
3ervioes Pvt Ltd (Bl3PL) west Bengal Company (NBlC) 1L0 171 1,028 309,100 144 20.54 165.00 99.99 7.14
15 3arvodaya Nano Chennai, Publio Ltd.
linanoe Ltd (3NlL) 1amil Nadu Company (NBlC) 30 113 949 84,919 174 12.21 100.48 80.75 5.27
16 BwUA linanoe Limited (BlL) villupuram, Publio Ltd.
1amilnadu Company (NBlC) 30 25 935 251,735 162 15.52 132.74 93.09 6.11
17 ujjivan linanoial Bangalore, Pvt. Ltd. 1L0,
3ervioes Pvt Ltd (ul3PL) Karnataka Company (NBlC) individual 96 837 132,067 126 24.41 85.08 99.80 5.09
18 luture linanoial 3ervioess Chittoor, Publio Ltd.
Ltd (ll3L) Andhra Pradesh Company (NBlC) 30 50 811 135,488 234 25.54 176.97 100.00 3.22
19 L3Al Miorofinanoe & 1hrissur, Pvt. Ltd.
lnvestments Pvt. Ltd (LMllL) Kerala Company (NBlC) 1L0 96 765 154,385 -12 23.88 109.15 95.22 -67.22
20 3.M.l.L.L Miorofinanoe Chennai, Publio Ltd.
Limited 1amil Nadu Company 1L0 87 757.7 141,879 73 16.59106.31 99.00 11.86
21 3wAw3 Credit Corporation 3eounderabad, Pvt. Ltd.
lndia Pvt Ltd (3CCl) Andhra Pradesh Company (NBlC) 1L0 44 546 90,082 115 19.36 140.08 99.87 4.09
22 3anghamithra Rural Bangalore, 3eotion 25
linanoial 3ervioes (3Rl3) Karnataka Company 30 18 538 23,204 67 15.05 112.52 94.12 7.06
23 3aadhana Miorofin Kurnool,
3ooiety (3aadhana) Andhra Pradesh 3ooiety 1L0 36 486 73,443 59 24.51 118.12 100.00 8.64
24 0ram utthan Kendrapara,
0rissa 3ooiety 1L0 20 439 64,100 10 17.33 110.33 98.60 44.84
25 Rashtriya 3eva 1irupati,
3amithi (RA33) Andhra Pradesh 3ooiety 30 5 433 41,453 56 16.12 130.46 92.55 7.52
26 3ahara utsarga Kolkatta ,
welfare 3ooiety (3uw3) west Bengal 3ooiety 30 62 377 90,396 68 31.52 187.80 97.03 4.23
27 3onata linanoe Allahabad, Pvt. Ltd.
Pvt Ltd (3onata) uttar Pradesh Company (NBlC) 1L0 41 352 61,935 68 28.33 136.24 99.91 6.60
28 Rashtriya 0ramin 0uwahati,
vikas Nidhi - C3P Assam 3ooiety Uiversified 44 303 57,429 20 23.92 130.74 95.83 12.77
As en 5e 30, 2008
Name ef MFl
Readquartered
ln
Legal 5tatus
Lendlng
medel
Number
ef
branches
Lean
0,5
(Rs. Mn)
Berrewers
(Ne.)
Net
werth
(Rs.
Mn)
Pertfelle
elld ()
055
()
Current
ertfelle
()
bebt te
netwerth
(1lmes)
Ar 01-5e 30, 2008 As en 5e 30, 2008
29 Arohan linanoial Kolkata, Publio Ltd.
3ervioes Ltd (Al3L) west Bengal Company (NBlC) 1L0 28 268 59,069 84 21.12 119.22 98.69 2.47
30 1analakshmi linanoial Bangalore, Pvt. Ltd.
3ervioes Pvt Ltd (1l3PL) Karnataka Company Uiversified 6 280 41,396 38 33.65 82.04 88.60 7.44
31 Annapurna linanoial yderabad, Pvt. Ltd.
3ervioes Pvt Ltd (Annapurna) Andhra Pradesh Company (NBlC) 1L0 30 274 43,267 176 111.47 100.00 0.75
32 and in and 1amil Nadu Kanoheepuram,
(i) 1amil Nadu 1rust 30 157 264 85,346 9 # # 96.00 #
33 Payakaraopeta women's
Mutually Aided Co-operative
1hrift and Credit 3ooiety Payakaraopeta , Co-operative 30,
(PwMAC13) Andhra Pradesh sooiety lndividual 5 258 31,040 42 18.40 111.97 99.75 4.50
34 Aadarsha welfare 3ooiety Mahabubnagar, 30,
(Aw3) Andhra Pradesh 3ooiety lndividual 7 257 26,378 24 13.35 122.47 99.77 10.37
35 Adhikar Bhubaneshwar,
0rissa 3ooiety 1L0 38 211 50,524 16 22.74 159.18 99.74 17.18
36 village linanoial 3ervioes Kolkata, Pvt. Ltd.
Pvt Ltd (vl3PL) west Bengal oompany (NBlC) 1L0 13 209 55,371 22 18.92 116.18 99.73 9.36
37 3ahara uttarayan Kolkata,
west Bengal 3ooiety 1L0 39 205 51,261 22 25.37 140.23 98.22 8.22
38 R0RL3 Mioro Lntrepreneur
Uevelopment 1rust 3rinivaspura,
(RMLU1) Karnataka 1rust 1L0 13 204 34,299 24 27.04 198.31 99.78 7.57
39 Centre for Rural
Reoonstruotion through Rajahmundry,
3ooial Aotion (CRe3A) Andhra Pradesh 3ooiety 1L0 15 200 32,491 18 21.02 126.30 100.00 13.08
40 lndur lntideepam MAC3 Nizamabad, Co-operative
lederation Ltd (llMl) Andhra Pradesh sooiety 30 20 191 21,396 28 15.24 118.24 100.00 6.73
41 welfare 0rganisation
for Multipurpose Mass
Awareness Network 1iruohirapalli,
(w0MAN) 1amil Nadu 3ooiety 30 15 191 63,650 26 23.13 135.11 86.00 6.97
42 Pragathi Mutually Aided
Cooperative Credit and
Marketing lederation Ltd warangal, Co-operative
(PMAC3) Andhra Pradesh sooiety 30 38 188 22,861 25 13.95 112.60 98.50 5.57
43 lndian Assooiation for
3avings and Credit Coimbatore , 3eotion 25
(lA3C) 1amil Nadu Company Uiversified 22 183 20,745 33 19.05 101.49 79.10 5.80
44 3ewa Mutually Aided
Cooperative 1hrift 3ooieties yderabad, Co-operative 30,
lederation Ltd (3ewa) Andhra Pradesh sooiety lndividual 34 183 923 52 15.05 100.00 88.23 1.97
45 lnitiatives for Uevelopment Bangalore,
loundation (lUl) Karnataka 1rust 30 11 178 56,315 7 17.34 121.30 99.21 26.18
46 0andhi 3maraka
0rama 3eva Kendram Alappuzha,
(0303K) Kerala 3ooiety 30 15 162 24,201 2 11.58 100.05 99.20 100.02
47 3wayamshree Mioro Credit Bhubaneswar, 3eotion 25
3ervioes (3MC3) 0rrisa Company 30 4 161 40,034 8 17.00 128.61 92.64 16.12
48 A30Ml 0uwahati,
Assam 3ooiety Uiversified 40 146 27,546 20 17.22 171.88 98.57 6.42
49 1anodaya 1rust Bangalore ,
Karnataka 1rust 30 26 127 16,193 11 24.51 125.97 99.25 12.61
50 Community Uevelopment 0enguvarpatti,
Centre (CUC) 1amil Nadu 1rust 30 12 124 31,876 8 15.38 139.93 99.43 16.12
As en 5e 30, 2008
Name ef MFl
Readquartered
ln
Legal 5tatus
Lendlng
medel
Number
ef
branches
Lean
0,5
(Rs. Mn)
Berrewers
(Ne.)
Net
werth
(Rs.
Mn)
Pertfelle
elld ()
055
()
Current
ertfelle
()
bebt te
netwerth
(1lmes)
Ar 01-5e 30, 2008 As en 5e 30, 2008
# i does not segregate the subsidised and on lending aotivities of its miorofinanoe programme and therefore the ratio analysis of i's
miorofinanoe programme is not meaningful.
Ratios are not oomputedas the oompany aoquiredthe loanportfolioonly in3eptember 2008
lee basedinoome alsoinoluded
1heerder ln whlchthenames aear ls en thebasls ef lean ameunt eutstandlng
A Brlef Preflle ef the 50 Largest MFls ln lndla
Net surplus Rs. Mn 3.99 9.86 7.70
Net worth Rs. Mn 24.08 20.09 10.23
Portfolioyield 13.35 15.81 14.49
lundbasedyield 12.64 15.08 13.89
Cost of borrowings 10.64 12.55 11.82
0perating expense ratio 2.85 3.56 3.52
Returnonnet worth 36.12 65.04 120.66
Returnonassets 2.77 3.48 4.77
0perational self-suffioienoy 122.47 122.14 126.92
Current portfolio 99.77 99.85 99.80
PAR>90days 0.10 0.05 -
Uebt/Net worth 1imes 10.37 13.62 24.99
Unlt 5et-08 Mar-08 Mar-01 Key Flnanclal Rlghllghts
lar|os are annua||seo
R
s
.

M
n
0
50
100
150
200
250
300
20,000
25,000
30,000
35,000
Mar-07 Mar-08
Loan o/s Uisbursements Borrowers
Grewth 1rend
3ep-08
Abeut theMFl
CRl5lL's analysls en key arameters
Aadarsha welfare 3ooiety (Aw3), an N00-Mll, has been involved in
oommunity development programmes inAndhraPradesh sinoe its inoeption
in 1994. lt started its miorofinanoe programme in Maroh 2003 for the rural
poor, subsequently in 2005-06(refers to finanoial year, April 1to Maroh 31),
Aw3beganlending insemi-urbanandurbanareas.
1he founders of Aw3 aoquired a non banking finanoe oompany (NBlC)
during 2008-09, they plan to transfer the miorofinanoe operations of Aw3
intothis NBlC in2009-10.
Aw3extends 12-month loans to self-help groups at an interest rate of 21per
oent per annum on reduoing balanoe basis. 1he Mll also oharges an upfront
fee (2 per oent of the loan amount) and an insuranoe fee (1 per oent of the
loanamount) from its borrowers.
Aw3 has reported signifioant growth from 2005-06 (refers to finanoial
year, April 1 to Maroh 31) to 2007-08: its member base inoreased at a
oompounded annual growth rate of 37 per oent, its disbursements at
110 per oent, and its loan outstanding at 128 per oent. owever, the
borrower base of the Mll deolined during first six months of 2008-09 as
funding oonstraints resultedinaslowdowninits loandisbursements.
Aw3 has oonsistently maintained good asset quality, with an on-time
repayment rate of more than99per oent sinoe inoeption.
Aw3's gearing levels have improved to 10.37 times as on 3eptember 30,
2008 from 13.62 per oent as on Maroh 31, 2008, due to deoline in
borrowings.
Aw3's funding mix is moderate, as on Maroh 31, 2008, around 18 per
oent of its total borrowings were partnership loans. 1he Mll has souroed
most of its resouroes from apex Mlls andprivate banks.
Aw3's operational self-suffioienoy (033) ratio has been above 120 per
oent over the past two years, and was 122.47per oent for the six months
ended 3eptember 30, 2008. owever, CRl3lL expeots the 033 ratio to
oome under pressure with reduotion in inoome, in oase the N00-Mll
faoes resouroe oonstraints and is, therefore, unable to inorease its
disbursements.
Aadarsha Welfare 5eclety
ear ef lncereratlen: 1994
ear ef cemmencement
ef mlcreflnance eeratlens: 2003
Legal status: 3ooiety
Lendlng medel: 30, lndividual
Chlef xecutlve: Mr. K. Ravi Kumar,
Chief Lxeoutive 0ffioer
Audlter: 3ampath & Ramesh,
yderabad
Centact betalls:
38-5-4/3, 1eaoher's oolony,
Mahabubnagar - 509002,
Andhra Pradesh
1el: +91-8542-270049
Lmail: awsap.mbnrgma||.oom
Gradlng by CRl5lL: es
0eratlenal Rlghllghts
Partlculars Unlt 5et. Mar. Mar.
Branohes No. 7 7 7
Lmployees No. 69 58 36
Members No. 55,250 55,250 42,640
Borrowers No. 26,378 33,196 26,852
Uisbursements Rs. Mn 114 277 305
Loan 0/3 Rs. Mn 257 278 252
2008 2001
l0l8'8 l080l Nfl8
Net worth Rs. Mn 15.57 9.78 4.28
lund-basedyield 17.92 21.45 17.53
0perational self-suffioienoy 159.18 119.81 138
PAR>90days 0.11 0.42 0.25
Abeut theMFl
1he 0rissa-based Adhikar started miorofinanoe operations in 2004. lts
miorofinanoe programme, Sanoha,|ka, is based on the 0rameen Bank
model. 1he Mll also helps its members form joint liability groups, offers
remittanoe servioes to migrant workers, and runs skill-building training
programmes for oooperatives. lt is present in13distriots of 0rissa.
Adhikar extends 50-week loans at an interest rate of 10 per oent on a flat
basis. Borrowers also have to pay 3.50 per oent of the sanotioned amount
towards prooessing oharges. A majority of the borrowers are mioro-
entrepreneurs who need the money to run or expand their businesses.
Reoently, the Mll introduoed home loans for its members, home loans are
oharged higher interest, at 20 per oent per annum on a reduoing balanoe
basis. Adhikar also provides aooident and life insuranoe servioes to its
olients through tie-ups with twoinsuranoe oompanies.
Adhikar has good asset quality, refleoted in 99.74 per oent of the
portfoliobeing ourrent (oolleotions ontime) as on3eptember 30, 2008.
Adhikar has reported a signifioant growth from 2005-06 (refers to
finanoial year, April 1 to Maroh 31) to 2007-08: its borrower base has
inoreased at a oompounded annual growth rate of 99.96 per oent, its
disbursements at 238per oent, andits loanoutstanding at 229per oent.
1he Mll's operations are oonoentrated in 0rissa, but it is planning to
expandtoadjoining states.
1he growth in disbursements and henoe inoreasing internal aooruals
have enabled Adhikar's miorofinanoe programme to report a positive net
worth of Rs.15.6 million as on 3eptember 30, 2008 - a marked
improvement from a negative net worth Rs.0.78 million as on
Maroh 31, 2006.
Adhikar has a moderately diversified funding profile. lts borrowing profile
oomprises several fund souroes, inoluding private banks, apex Mlls, and
other finanoial institutions.
Adhikar's gross interest spreads are expeoted to be under some
pressure, as borrowing oosts are expeoted to inorease. Nevertheless,
CRl3lL expeots the Mll's operating profitability to be supported by its
healthy fee-basedinoome.
1he founders of Adhikar have aoquired a non-banking finanoial oompany
(NBlC), Adhikar Miorofinanoe Pvt Ltd. 0iven its inoreasing asset size,
Adhikar plans to transfer its miorofinanoe programme to the reoently-
aoquired NBlC, whioh will enable the Mll to raise oapital for
funding growth.
R
s
.

M
n
0
150
300
30,000
34,000
38,000
42,000
46,000
50,000
Mar-07 Mar-08 3ep-08
Grewth 1rend
Branohes No. 38 32 25
Members No. 66,575 51,564 36,255
Borrowers No. 50,524 45,553 35,210
Loan 0/3 Rs. Mn 211 185 121
2008 2001
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Md. N Amin,
President
Audlter: 3RB & Assooiates,
Bhubaneshwar
Centact betalls:
113/2526, Khandagiri vihar
Khandagiri, Bhubaneshwar, 0rissa - 751030
Phone: +91-674-2384542
Lmail: adhikarsatyam.net.in
web: www.aoh|kar|no|a.org
Adhlkar: 5anchaylka regramme
Abeut theMFl
Annapurna linanoial 3ervioes Pvt. Ltd. (Annapurna), a non-banking
finanoial oompany (NBlC), oommenoed miorofinanoe operations in 1anuary
2008 by aoquiring the nasoent miorofinanoe programme of 1rident 3eva
3ooiety. 3ubsequently, in 3eptember 2008, the NBlC aoquired the
miorofinanoe programme of 1he Maxwealth 1rust (Maxwealth), an Mll
started by the lnstitute of Chartered linanoial Analysts of lndia, yderabad.
At the time of the aoquisition, Maxwealth 1rust hada loanportfolio of Rs.192
million, with 23 branohes in 0reater yderabad. Annapurna operates in five
distriots of AndhraPradesh andfour distriots of Maharashtra. 1he boardand
senior management of the Mll have oonsiderable experienoe in
miorofinanoe.
Annapurna offers seven loan produots, the loan amounts range from
Rs.8,000 to Rs.100,000. 1he Mll's oore loan produot is a 12-month loan
with an interest rate of 15per oent on a flat basis. lt also offers life insuranoe
toits members through atie-up with aprivate life insuranoe oompany.
1he oompany's asset quality was good as on 3eptember 30, 2008.
1hough Annapurna started its miorofinanoe operations reoently, its loan
portfolio is reasonably seasoned as it aoquired the 2.5-year-old
miorofinanoe programme of Maxwealth. All loans in the portfolio were
ourrent (oolleotions ontime) as on3eptember 30, 2008.
As of 3eptember 30, 2008, Mll hada loanportfolio of Rs.274millionand
43,267 borrowers. owever, 70 per oent of the loans outstanding as of
that date were from the 0reater yderabadregion.
lor six months ending 3eptember 30, 2008, the Mll had an operational
self-suffioienoy (033) ratio of 111.47per oent. As the oompany aoquired
a sizeable proportion of its loan portfolio only in 3eptember 2008, the
Mll's finanoial ratios oould have ohanged substantially in reoent times.
CRl3lL expeots the Mll's 033 ratio to improve further, sinoe it has
aoquired branohes that have large numbers of borrowers, healthy asset
quality, andoomfortable gross interest spreads.
Uuring first half of 2008-09, investors have infused oapital into the
oompany resulting in net worth inoreasing to Rs.175.53 million as on
3eptember 30, 2008. As a result, the oompany's debt-to-net worth ratio
was oomfortable at 0.75 times as on the above date. CRl3lL expeots this
oapitalisationtobe adequate tosupport medium-term growth.
ear ef cemmencement
Legal status: Private Ltd. Co. (NBlC)
Lendlng medel: 1L0
Chlef xecutlve: Mr. P. Kishore Kumar
Managing Uireotor
Audlter: vaithisvaran &
Co, yderabad
Centact betalls:
st nd
.No.11-8-15, Ml0 33, 3hree 3ai Aroade, 1 & 2 lloor,
3aroornagar, yderabad-500 035, Andhra Pradesh
1el: +91-40-23443210/211/212
1elefax No: +91-40-24051528
Lmail: |nforr|oenrm|orof|n.oom
Annaurna Flnanclal 5ervlces Pvt. Ltd.**
Net profit Rs. Mn 0.97 0.90
Net worth Rs. Mn 175.53 19.83
Portfolioyield
lund-basedyield
Cost of borrowings
0perating expense ratio
Returnonnet worth
Returnonassets
0perational self-suffioienoy 111.47
Current portfolio 100
Uebt/Net worth 1imes 0.75
Unlt 5et-08 Mar-08* Key Flnanclal Rlghllghts
lar|os are nor oompureo as rhe oompan, aoqu|reo rhe |oan porrfo||o on|, |n Seprember 2003
1he oompan,'s name has reoenr|, been ohangeo ro 1r|oenr M|orof|n lvr. lro.
Partlculars Unlt 5et. Mar.
Branohes No. 30 7
Lmployees No. 218 40
Members No. 44,170 8,200
Borrowers No. 43,267 8,200
Uisbursements Rs. Mn 420 65
Loan 0/3 Rs. Mn 274 47
2008
R
s
.

M
n
0
50
100
150
200
250
300
350
400
450
0
15,000
30,000
45,000
Mar-08 3ep-08
Grewth 1rend
R
s
.

M
n
0
150
300
60,000
50,000
40,000
30,000
20,000
10,000
0
Grewth 1rend
Abeut theMFl
Arohan linanoial 3ervioes Ltd. (Al3L), a non-banking finanoial oompany
(NBlC), started its miorofinanoe operations in 2006 with a foous on
delivering finanoial servioes to small entrepreneurs. Al3L operates aoross
the 0reater Kolkata region, whioh inoludes the distriots of North and 3outh
24Parganas, owrah, oogly, andNadia. Al3L lends to five-member groups
under the 0rameenBankmodel of lending.
1he Mll's oore loan produot is a 57-week loan with an interest rate of 24.13
per oent per annum on a reduoing balanoe basis. Additionally, it extends
'Bazar loans' under the joint liability group (1L0) model to small
entrepreneurs operating out of authorised market plaoes: borrowers are
oharged27.29per oent per annum interest onareduoing balanoe basis. 1he
miorofinanoe institution (Mll) oharges a 4 per oent prooessing fee for both
produots, levied at the time of disbursements. Al3L has also tied up with a
private insuranoe oompany tooffer life insuranoe for its borrowers.
Al3L was inoorporated in 1991 as AN0 Resouroes Limited: it was aoquired
by its ourrent management in 2006, following whioh the NBlC started its
miorofinanoe programme.
Al3L has reported strong growth from the inoeption of the miorofinanoe
program in 2006-07 (refers to finanoial year, April 1 to Maroh 31): its
member base and total disbursements have almost tripled in size sinoe
Maroh 2007.
with the inorease in soale, the Mll has reported a oonsistent
improvement in its 0perational self-suffioienoy (033) ratio to 119.22per
oent reoorded during the six months ended 3eptember 30, 2008.
Although the Mll's oost of borrowing and operating oosts are expeoted to
inorease, CRl3lL expeots the 033 to remain above 100per oent beoause
of the Mll's healthy fee-based inoome (from the upfront prooessing fee
andinsuranoe oommission).
Beoause of equity infusion by some miorofinanoe-speoifio equity funds,
and individuals, Al3L has been able to enhanoe its net worth to Rs.83.9
million as on 3eptember 30, 2008: oonsequently, its gearing has
remained low at 2.47 times as on 3eptember 30, 2008. CRl3lL believes
that the Mll's oapitalisation is suffioient to support its growth over the
medium term.
Al3L has good asset quality, refleoted in 98.69 per oent of the portfolio
being ourrent (oolleotions ontime) as on3eptember 30, 2008.
Raising debt to meet demand from a growing borrower base, and
simultaneously expanding its geographio outreaoh through branoh
expansions, will remainoritioal for the Mll over the medium term.
Arehan Flnanclal 5ervlces Ltd.
Members No. 59,069 34,261 9,945
Borrowers No. 59,069 34,261 9,945
Loan 0/3 Rs. Mn 268 130 30
2008 2001
Net profit Rs. Mn 4.91 0.23 -4.26
Net worth Rs. Mn 83.85 49.65 11.91
Returnonnet worth 14.70 0.75 -35.77
Returnonassets 4.28 0.23 -12.16
Current portfolio 98.69 97.71 100
PAR>90days 0.13 0.18 -
ear ef cemmencement
Legal status: Publio Ltd Co. (NBlC)
Lendlng medel: 1L0
Chlef xecutlve: Mr. 3hubhankar
3engupta,
Managing Uireotor
Audlter: Mookherjee, Biswas
& Pathak, Kolkata
Centact betalls:
'Prafulla' 195/1 Rajdanga,
Chakraborty para, P.3. Kasba, Kolkata - 700107
1el: +91-33-64500735
Lmail: shubhankar.senguptaarohan.in
web: www.arohan.|n
Abeut theMFl
Asmitha Miorofin Ltd. (AML), an NBlC, began its miorofinanoe operations in
2002, it is one of the top five miorofinanoe institutions (Mlls) in lndia, in
terms of loans outstanding. AML lends to five-member groups of women
under the 0rameen Bank model, at a flat interest rate of 12.5 per oent to 15
per oent, andoharges anupfront one-time prooessing fee of 1.15to2.50per
oent of the loanamount.
AML has a strong rural presenoe. Most of the loans are given for inoome-
generation aotivities, trading and animal husbandry aooount for about two-
thirds of AML's loans. As of Maroh 31, 2008, AML was present in 0rissa,
Andhra Pradesh, Karnataka, and Maharashtra: it has ventured into nine
more states during the first half of 2008-09 (refers to finanoial year, April 1
toMaroh 31).
AML has reported a oompounded annual growth rate (CA0R) of around
28per oent inits member base, 24per oent inits disbursements, and 37
per oent in its total loans outstanding, from 2005-06 to 2007-08. 1he
growth was moderate on aooount of the Mll deliberately slowing
disbursements during 2006-07 following the Krishna distriot (Andhra
Pradesh) orisis, whioh affeotedall Mlls operating inthe distriot.
1he Mll has a diversified funding profile, with aooess to funds from
several finanoial institutions and private banks. 1his supports its
finanoial flexibility, in that it is not dependent upon any one souroe to
raise funds for growth.
1he leverage ratio was relatively high at 9.92 times as on 3eptember 30,
2008, beoause of large borrowings. Uespite an equity infusionof Rs.250
million in the third quarter of 2008-09, CRl3lL expeots leverage to
remainat the same levels beoause of the Mll's aggressive growth.
AML has a good asset quality, refleoted in 99.80 per oent of the portfolio
being ourrent (oolleotions ontime) as on3eptember 30, 2008. 1he asset
quality, whioh had deteriorated in 2006-07 beoause of the oolleotion
orisis inKrishnadistriot, has regainedits earlier levels.
CRl3lL expeots AML's profitability to improve over the medium term,
despite the oost of penetrating new states, beoause the Mll has
inoreasedits lending rates.
Asmltha Mlcrefln Ltd.
ear ef cemmencement
Legal status: Publio Ltd. Co. (NBlC)
Lendlng medel: 1L0
Chlef xecutlve: Ur. vidya 3ravanthi,
Chairperson &
Managing Uireotor
Audlter: v. Nagarajan & Co.,
0urgaon
Centact betalls:
1-2-58, Plot No. 1-3, N-Blook, Kakatiya Nagar,
absiguda, yderabad- 500007, Andhra Pradesh
1el: +91-40-2715 7865, lax: +91-40-2715 3156
Lmail: am|asm|rham|orof|n.oom
web: www.asm|rham|orof|n.oom
Lmployees No. 2,233 1,747 1,105
Members No. 849,029 701,432 538,740
Borrowers No. 694,350 565,806 416,829
Uisbursements Rs. Mn 5,175 6,010 3,512
Loan 0/3 Rs. Mn 4,944 3,359 1,976
2008 2001
R
s
.

M
n
0
1,500
3,000
4,500
6,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Mar-07 3ep-08
Grewth 1rend
Mar-08
Net profit Rs. Mn 95.06 45.42 27.57
Net worth Rs. Mn 475.42 380.57 141.31
PAR>90days 0.13 0.68 2.54
R
s
.

M
n
50
250
200
150
100
300 30,000
25,000
20,000
15,000
10,000
5,000
Grewth 1rend
Abeut theMFl
A30Ml is an Assam-based sooiety, engaged in miorofinanoe and
developmental aotivities. ln 2008-09, it transferred Rs.25 million of its
advanoes to a non-banking finanoial oompany (NBlC), Asomi linanoe Pvt
Ltd, promoted by A30Ml's founders. A30Ml lends to joint liability groups
(1L0s), self-help groups, and individuals. 1he Mll oharges an upfront fee (2
per oent to 4 per oent of the loan amount) and a membership fee (Rs. 100)
from its borrowers.
A30Ml extends loans for 10 to 100 weeks at an interest rate of 5 to 12 per
oent onaflat basis. Loanamounts vary from Rs.1,000toRs.50,000.
A30Ml has reported signifioant growth from 2005-06 (refers to finanoial
year, April 1 to Maroh 31) to 2007-08: its borrower base inoreased at a
oompounded annual growth rate of 210 per oent, and its loans
outstanding at 266 per oent.
1he Mll has a diverse funding profile, with aooess to funds from several
finanoial institutions, and publio and private seotor banks. 1his provides
the Mll finanoial flexibility as it is not dependent upon a limited number
of funding souroes.
1he Mll's gearing levels have deolinedto6.42times as of 3eptember 30,
2008, from 91.45times as of Maroh 31, 2007, beoause of oapital grants
and inoreased internal aooruals. 0iven its growing assets, A30Ml plans
to transfer its miorofinanoe programme to Asomi linanoe Pvt Ltd, whioh
being a oompany would be in a position to raise oapital for funding
growth.
1he Mll has good asset quality, refleoted in 98.57 per oent of the
portfolio being ourrent (oolleotions on time) as on 3eptember 30, 2008.
1his is beoause of adequate loan monitoring prooesses and appraisal
meohanisms.
A30Ml's 0perational self suffioienoy (033) ratio has improved over the
past two years, and was 171.88 per oent for the six months ended
3eptember 30, 2008. CRl3lL expeots the 033 ratio to remain over 100
per oent, but its growth from ourrent levels is likely to be ourtailed
beoause of the inoreasing oost of borrowings.
ear ef cemmencement
Lendlng medel: Uiversified
Chlef xecutlve: Mr. 3ubhra 1yoti
Bharali, 3eoretary
Audlter: Anupam Baruah
& Co., 0uwahati
Centact betalls:
Above 3Bl A1M (west 0uwahati Branoh),
2nd lloor, Bharalumukh, 0uwahati - 781039, Assam
1el: +91-361-2736212
lax: +91-361-2736213
Lmail: axom|reo|ffma||.oom
A50Ml
Members No 31,975 27,289 19,055
Borrowers No 27,546 21,472 10,078
Loan 0/3 Rs. Mn 146 171 156
2008 2001
Net worth Rs. Mn 20.15 12.91 1.88
PAR>90days 0.26 0.63 0.13
Abeut theMFl
Bandhan is among the top 10 miorofinanoe institutions (Mlls) in lndia, in
terms of loans outstanding, as on 3eptember 30, 2008, it had a portfolio of
Rs.3.39billion. 1he Mll's lending model is similar to that adoptedby the A3A
(formerly known as Assooiation for 3ooial Advanoement), a leading Mll in
Bangladesh.
Bandhan has a presenoe in both rural and urban areas. lt offers three loan
produots, all of 12-month tenure, but with varying interest rates and other
terms and oonditions. As on 3eptember 30, 2008, Bandhan had 851,713
borrowers. 1he N00-Mll intends to transfer its entire loan portfolio to
Bandhan linanoial 3ervioes Pvt Ltd (Bl3PL), a non-banking finanoial
oompany (NBlC), during 2009-10 (refers to finanoial year, April 1 to
Maroh 31).
Bandhan has reported signifioant growth between 2005-06 and 2007-
08: its member base inoreased at a oompounded annual growth rate of
122 per oent, its disbursements at 195 per oent, and its loans
outstanding at 174per oent.
Although the Mll is present is nine states, its operations are
oonoentrated in west Bengal, whioh aooounts for 95 per oent of its
advanoes. 1he Mll plans to inorease business levels in other states, to
mitigate the oonoentrationrisk.
Bandhan has oonsistently maintained good asset quality, with an on-
time repayment rate of more than99.5per oent sinoe inoeption.
Bandhanhada net worth of Rs.435millionas on3eptember 30, 2008, a
big leap from Rs.86.4 million as on Maroh 31, 2007. lnternal aooruals
aooounted for 94 per oent of the net worth, as of 3eptember 30, 2008,
with the remainder being oontributed by grants. As a result of the
inoreasednet worth, Bandhan's gearing has improvedto7.07times as of
3eptember 30, 2008, despite large borrowings.
1he Mll had a diversified funding profile, with aooess to funds from
several finanoial institutions, and from publio and private seotor banks.
1his supports the Mll's finanoial flexibility in that it is not dependent
uponany one funding souroe for growth.
Bandhan's ourrent profitability is strong with an operational self
suffioienoy ratio in exoess of 175 per oent for the six months ended
3eptember 30, 2008. CRl3lL expeots Bandhan's profitability to remain
oomfortable despite the inorease in borrowing oosts, beoause the Mll is
able topass onthe inoreasing oosts toborrowers.
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. Chandra 3hekhar
0hosh, 3eoretary
Kolkata
Centact betalls:
AB-48, 3eotor 1, 3alt Lake City
Kolkata - 700064, west Bengal
1el: +91-33-2334 7602, lax: +91-33-2334 6751
Lmail: banohan|no|agma||.oom
web: www.banohanmf.oom
Bandhan
Lmployees No. 2,640 2,415 1,649
Members No. 934,050 866,381 498,444
Borrowers No. 851,713 757,903 433,324
Loan 0/3 Rs. Mn 3,389 2,783 1,261
2008 2001
R
s
.

M
n
0
1,500
3,000
4,500
400,000
500,000
600,000
700,000
800,000
900,000
Grewth 1rend
Net surplus Rs. Mn 195.92 128.12 62.00
Net worth Rs. Mn 434.96 214.55 86.43
0perating Lxpense ratio 4.97 8.24 7.79
PAR>90days 0.07 0.05 0.05
0
200
400
600
800
1,000
1,200
15,000
55,000
95,000
135,000
175,000
215,000
255,000
295,000
335,000
Mar-07 Mar-08
Grewth 1rend
3ep-08
R
s
.

M
n
Net profit Rs. Mn 41.95 15.07 0.43
Net worth Rs. Mn 144.09 101.08 6.50
0perational self-suffioienoy 165 125 111
PAR>90days 0.11 0.10 -
Abeut theMFl
ln 2006, the founders of Bandhan, a non-governmental organisation (N00)
with miorofinanoe operations, aoquired 0anga Niryat Pvt. Ltd., a non-
banking finanoial oompany (NBlC), and registered it as Bandhan linanoial
3ervioes Pvt. Ltd. (Bl3PL). As on 3eptember 30, 2008, the Mll had loans
outstanding of Rs.1028 million spread aoross 171 branohes. 1he Bandhan
group plans to oonsolidate its miorofinanoe operations under Bl3PL in
2009-10(refers tofinanoial year, April 1toMaroh 31).
Bl3PL follows the group-based lending approaoh, its loan produots are
similar to those of Bandhan. 1he NBlC's presenoe is largely restrioted to
west Bengal and 1ripura and during first six months of 2008-09, it also
openedbranohes inNewUelhi andBihar.
Bl3PL's borrower base expanded to 309,100 as on 3eptember 30,
2008, from 15,980 as on Maroh 31, 2007. Uuring 2007-08, Bl3PL
started operations in west Bengal, whioh assisted it in inoreasing its
borrower base. 1he Mll has opened about 100 new branohes during
2008-09. 1o reduoe the risk of geographio oonoentration, the Mll has
diversifiedtoNewUelhi andBihar.
lollowing oapital infusion of Rs.79.8 million during 2007-08, Bl3PL's
net worth inoreased to Rs.101.08 million as on Maroh 31, 2008, from
Rs.6.50 million as on Maroh 31, 2007. CRl3lL believes that the Mll's
ambitious growth plans will require further equity infusion at regular
intervals.
Bl3PL has good asset quality, refleoted in 99.99 per oent of the portfolio
being ourrent (oolleotions ontime) as on3eptember 30, 2008. 1he asset
quality has remainedgooddespite the diffioulties of oolleotionduring the
floods in1ripuraandwest Bengal in2007-08.
Bl3PL's ourrent profitability is strong, with anoperational self suffioienoy
ratio of 165 per oent for the six months ended 3eptember 30, 2008.
CRl3lL expeots B3lPL's profitability to remain oomfortable despite the
inorease in borrowing oosts, beoause the Mll is able to pass on the
inoreasing oosts toborrowers.
Bandhan Flnanclal 5ervlces Pvt. Ltd.
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. Chandra 3hekhar
0hosh, Chairman
and Managing Uireotor
Kolkata
Centact betalls:
AB-48, 3eotor 1, 3alt Lake City
Kolkata - 700064, west Bengal
1el: +91-33-2334 7602, lax: +91-33-2334 6751
Lmail: banohan|no|agma||.oom
web: www.banohanmf.oom
Members No. 335,635 157,170 19,314
Borrowers No. 309,100 138,811 15,980
Uisbursements Rs. Mn 1,015 768 68
Loan 0/3 Rs. Mn 1,028 529 46
2008 2001
1,000
2,000
3,000
4,000
0
100,000
200,000
300,000
400,000
500,000
Grewth 1rend
R
s
.

M
n
Abeut theMFl
Bhartiya 3amruddhi linanoe Ltd. (B3lL), an NBlC promoted by Bhartiya
3amruddhi lnvestments and Consulting 3ervioes Ltd. (BA3lC3), started
operations in 1997. B3lL is one of the pioneers in extending organised
miorofinanoe to those without aooess to banking and finanoial servioes. 1he
oompany has more than a deoade of experienoe in miorofinanoe, and has
disbursed more than Rs.11 billion of loans sinoe inoeption. B3lL adopts
diverse lending models (loans to individuals, joint-liability groups of farmers
and federations of women 30s. 1he oompany is the first lndian Mll to offer
weather-based insuranoe to oustomers through a tie-up with an insuranoe
oompany, andthe first Mll with aninstitutional shareholding struoture.
B3lL provides miorofinanoe and knowledge-based teohnioal assistanoe. lts
oustomers inolude small and marginal farmers, rural artisans, mioro-
enterprises, and federations and oooperatives owned by self-help groups
(30s). As on 3eptember 30, 2008, it had a presenoe in 8 states
aoross lndia.
Uuring 2007-08 (refers to finanoial year, April 1 to Maroh 31), the
oompany's loan disbursements grew by 65.5 per oent over the previous
year, to Rs.2.82 billion. As a result of signifioant growth in advanoes over
the past two years, B3lL's oapital adequaoy ratio deolined below 10 per
oent as on 3eptember 30, 2008. owever, the oompany raised Rs.300
million of oapital in Maroh 2009, allowing it to maintain oapital adequaoy
above the regulatory minimum as on Maroh 31, 2009. 0iven B3lL's
aggressive growth plans, CRl3lL expeots the oompany's oapital
adequaoy to remain under pressure over the medium term, unless more
oapital is infusedduring 2009-10.
B3lL's operational self-suffioienoy (033) ratio has deolined to 109 per
oent during first six months of 2008-09 from 116.84 per oent in 2006-
07, beoause of a deoline in gross spreads. owever, CRl3lL expeots the
033 ratio to improve in the medium term beoause of inoreased
prooessing fees (effeotive November 2008) andyields.
B3lL has improved its asset quality over the years, beoause of a revamp
of its risk management systems, inoreasing diversifioation in its loan
assets, and strong relationships with borrowers. As a result, the on-time
repayment rate (01RR), improved to 99.2 per oent for 2007-08, from
98.8 per oent in the previous year. CRl3lL expeots B3lL to maintain its
asset quality, and systems and prooedures at present levels over the
medium term.
ear ef cemmencement
Chlef xecutlve: Mr. vijay Mahajan,
Managing Uireotor
yderabad
Centact betalls:
3rd lloor, 3urabhi Aroade, Bank street, 1roop Bazar,
Koti, yderabad - 500001, Andhra Pradesh
1el: +91-40-30512500/01, lax: +91-40-30512502
Lmail: v|ja,mahajanbas|x|no|a.oom
web: www.bas|x|no|a.oom
Bhartlya 5amruddhl Flnance Ltd.
Members No. Not applioable
Borrowers No. 457,668 305,438 198,282
Loan 0/3 Rs. Mn 3,882 2,254 1,397
2008 2001
Net profit Rs. Mn 19.02 39.89 29.26
Net worth Rs. Mn 316.72 297.70 270.44
PAR>90days 0.7 0.7 1.2
lar|os are annua||seo, Un-r|me repa,menr rare
300
450
600
750
900
1,050
1,200
1,350
1,500
1,600
0
40,000
80,000
120,000
160,000
Uisbursements Borrowers
Grewth 1rend
3ep-08
R
s
.

M
n
Mar-07
Loan o/s
Mar-08
Net profit Rs. Mn 30.56 69.06 12.21
Net worth Rs. Mn 166.35 132.81 36.56
0perational self-suffioienoy 147.26 156 120
Current portfolio 99.99 100 100
PAR>90days - - -
BMPL B55
Unlt 5et-08 Mar-08 Mar-01
Key Flnanclal Rlghllghts
Abeut theMFl
B33 Miorofinanoe Pvt. Ltd. (BMPL), formerly 0yster Capitals Pvt Ltd, is a
Bangalore-based non banking finanoial oompany (NBlC) whioh started its
miorofinanoe operations in April 2008 by taking over the operations of
Bharatha 3wamukti 3amsthe (B33), an Mll registered as a trust. B33 was
founded by Mr. K. 3. Nagendra in 1997. B33 reoeived its first external loan
for its miorofinanoe program from 0rameen 1rust, Bangladesh, in 1anuary
1998.
BMPL follows the 0rameenBank model of lending andoffers loans at 15per
oent (flat rate basis) to women organised as joint liability groups (1L0s). ln
May 2007, it alsolaunohedanindividual loanproduot onapilot basis.

1he Mll registered a healthy oompounded annual growth rate (CA0R) of
around 143 per oent in its borrower base, 183 per oent in its
disbursements, and180per oent inits loanoutstanding, between2005-
06 (refers to finanoial year, April 1 to Maroh 31) to 2007-08. Uuring the
six month ended 3eptember 2008 , the Mll has maintained its growth
momentum andhadaddedaround25,000borrowers.
BMPL has good asset quality, refleoted in 99.9 per oent of the portfolio
BMPL has a diversified funding profile with most of its resouroes being
mobilisedfrom apex Mlls, andfrom publio andprivate seotor banks. 1his
supports the Mll's finanoial flexibility as it is not dependent upon any
one funding souroe for growth.
1he oompany had a net worth of Rs.166.35 million, and gearing of 6.36
times, as on 3eptember 30, 2008. owever, the Mll's growth plans will
require it toraise further oapital tomaintainadequate oapitalisation.
BMPL's operational self-suffioienoy (033) ratio was oomfortable at 147
per oent for the six months ended 3eptember 30, 2008. CRl3lL expeots
the 033 ratio to remain over 100 per oent, but the ratio is unlikely to
inorease signifioantly beoause of the inoreasing oost of borrowing.
B55 Mlcreflnance Pvt. Ltd.
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Ur. Ramesh Bellamkonda,
Managing Uireotor
Audlter: 0. R. venkatanarayana
& Co., Bangalore
Centact betalls:
No. Com-9, Uevaraja urs 1ruok 1erminal,
Peenya Main Road, 0pp. Kanteerava lilm 3tudio
eshwanthapura, Bangalore - 560022, Karnataka
1el: +91-80-65732387, lax: +91-80-23471884
Lmail: swamukr|swamukr|.oom,
Gradlng by CRl5lL: No
Members No. 168,485 142,851 69,754
Borrowers No. 159,886 134,765 63,315
Uisbursements Rs. Mn 1,225 1,611 618
Loan 0/3 Rs. Mn 1,157 814 389
BMPL B55
2008 2008 2001
800
900
1,000
1,100
1,200
150,000
200,000
250,000
300,000
3ep-08
Grewth 1rend
R
s
.

M
n
500
600
700
Mar-08 Mar-07
Abeut theMFl
BwUA linanoe Ltd. (BlL) started its miorofinanoe operations in August
2003 by taking over the miorofinanoe operations of Bullook-Carts workers
Assooiation (BwUA), a N00-Mll. BwUA had started its miorofinanoe
operations in1999with funding support from RashtriyaMahilaKosh (RMK).
BlL extends loans of tenures between 15 and 36 months, to self-help
groups (30s) at an interest rate of 15 per oent per annum on reduoing
balanoe basis. ln addition, the Mll oharges an upfront fee (1 per oent of the
loanamount) andamembership fee at the time of disbursement.
BlL's borrower profile oonsists largely of 30s, the oompany also provides
individual loans to members from senior 30s, and institutional loans to
N00s for on-lending to their 30s. 1he Mll's borrower base is spread aoross
1amil Nadu, Pondioherry, andthe AndmanandNioobar lslands.
BlL reported a moderate oompounded annual growth rate (CA0R) of 42
per oent in its member base and 50 per oent in total loans outstanding,
between 2005-06 (refers to finanoial year, April 1 to Maroh 31) and
2007-08.
BlL's gearing levels improved to 6.11 times as on 3eptember 30, 2008
from 11.95times on Maroh 31, 2007, beoause of oapital infusion during
2007-08. whenthe asset size orosses Rs.1billion, BlL will automatioally
beoome a systemioally important non-deposit-taking NBlC (NBlC-NU-
3l), and will need to follow regulatory oapital adequaoy requirements,
whioh will require further oapital infusion.
1he Mll has a diverse funding mix, with aooess to funds from several
finanoial institutions andprivate banks. 1his supports the Mll's finanoial
flexibility, it is not dependent onany one funding souroe for growth.
BlL's asset quality is moderate: 93 per oent of the portfolio was ourrent
(oolleotions on time) as on 3eptember 30, 2008. 1he portfolio-at-risk
greater than 90 days inoreased to 3.47 per oent as on 3eptember 30,
2008, from 1.29 per oent as on Maroh 31, 2007. 1his deoline in asset
quality is beoause of inoreasedexposure tourbanandsemi-urbanareas.
BlL's operational self suffioienoy ratio improved to 132.74 per oent for
the six months ended 3eptember 30, 2008. 1he operating expense
levels have shown an improvement during first half of 2008-09 and thus
CRl3lL expeots the 033ratiotoremainhealthy inthe medium term.
BWbA Flnance Ltd.
Members No. 314,669 292,729 236,388
Borrowers No. 251,735 234,183 189,111
Uisbursements Rs. Mn 590 1,143 1,006
Loan 0/3 Rs. Mn 935 851 722
2008 2001
Net profit Rs. Mn 13.32 22.25 14.70
Net worth Rs. Mn 162.39 140.49 59.69
PAR>90days 3.47 2.15 1.29
ear ef cemmencement
Lendlng medel: 30
Chlef xecutlve: Ur. C. 1oslin 1hambi,
Managing Uireotor
Audlter: A 1ohn Morris &Co.,
Chennai
Centact betalls:
Post Box No.23, 858, Last Pondy Road, villupuram
villupuram Uist, 1amil Nadu - 605602
1el: +91-4146 - 243861 / 240683
lax: +91-4146-242815
Lmail: bwoavpm,ahoo.oom
Mar-08
Grewth 1rend
R
s
.

M
n
Mar-07 3ep-08
0
500
1,000
1,500
2,000
2,500
3,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Lmployees No. 1,627 1,408 1,151
Members No. 363,679 354,930 235,886
Borrowers No. 303,935 303,245 201,703
Loan 0/3 Rs. Mn 1,431 1,473 860
2008 2001
Casher Mlcre Credlt
Abeut theMFl
Cashpor Mioro Credit (CMC) was promoted in 2002 as a subsidiary of
Cashpor linanoial and 1eohnioal 3ervioes (Cl13). Cl13 did not have
regulatory olearanoe to offer finanoial servioes, and therefore transferredits
miorofinanoe operations, whioh it had started in 1997, to CMC. CMC
operates ineasternuttar Pradesh andwesternBihar.
1he Mll has developed an index, Cashpor ousing lndex (Cl), to help
identify prospeotive members for lending. 1he Mll follows joint liability group
(1L0) model and has adopted the best praotioes of both 0rameen Bank and
A3A models of Bangladesh. CMC offers three loanproduots, all at aninterest
rate of 27per oent per annum (onreduoing balanoe basis) andwith tenure of
52weeks. 1he loanamount ranges from Rs.1,000toRs.25,000.
CMC has reoorded a oompounded annual growth rate (CA0R) of around
22 per oent in its member base, and 44 per oent in its total loans
outstanding, during the period between 2005-06 (refers to finanoial
year, April 1 to Maroh 31) to 2007-08. 1he growth has been moderate
beoause the Mll operates in remote and most baokward regions of uttar
Pradesh andBihar.
CMC's gearing was high at 14.72 times as on 3eptember 30, 2008,
being a 3eotion 25 oompany, it oannot attraot muoh oonventional equity
oapital. 1he Mll's debt as on 3eptember 30, 2008 oomprised 6.84 per
oent long-term (four- to seven-year) subordinated debt from a venture
oapitalist andtwosooial investment organisations.
1he Mll's ambitious growth will be funded largely through borrowings, as
its ourrent legal status makes it diffioult to raise equity oapital. lnternal
aooruals, while showing improving from earlier levels, are not likely to be
suffioient tosupport growth plans.
CMC has a good asset quality, whioh is refleoted in 98 per oent of the
Moreover, the portfolio at risk greater than 90 days was low at 1.71 per
oent as on3eptember 30, 2008.
1he Mll has inoreased its lending rates in 2008-09, whioh has resulted
in operational self suffioienoy (033) improving to 109.71 per oent during
first half of 2008-09 despite inorease in operating expense levels and
oost of borrowings. CRl3lL expeots the 033 to remain more than 100 per
oent over the medium term.
Net profit Rs. Mn 33.31 20.60 -22.09
Net worth Rs. Mn 92.50 53.68 -1.53
Returnonassets 4.54 1.56 NM
PAR>90days 1.71 1.57 2.04
Uebt/Net worth 1imes 14.72 289.24 NM
lar|os are annua||seo NM-Nor Mean|ngfu|
ear ef cemmencement
Legal status: 3eotion 25Company
Lendlng medel: 1L0
Chlef xecutlve: Mr. 1 3 1omar,
Managing Uireotor
Audlter: M. 1aiswal &
Assooiates, varanasi
Centact betalls:
B/4, U. l. 0. Colony,
varanasi - 221002, uttar Pradesh
1el: +91-542-2505590-92
Lmail: heaooff|oeoashpor.|n
web: www.oashpor|no|a.ner
Z0 lndia 1op 50 Miorofinanoe lnstitutions
200
300
Grewth 1rend
R
s
.

M
n
100
Loan o/s
20,000
25,000
30,000
35,000
Borrowers
Mar-08 3ep-08
Uisbursements
0
Mar-07
Abeut theMFl
Centre for Rural Reoonstruotion through 3ooial Aotion (CRe3A), a sooiety,
was formed in 1980. until 2003, CRe3A worked primarily in the area of
sooial development, from 2004, it has foousedonmiorofinanoe. CRe3A runs
miorofinanoe operations in the west and Last 0odavari distriots of Andhra
Pradesh.
CRe3A follows the 0rameen Bank model of lending, and offers 50 week
loans at a 12.50 per oent (flat rate basis). ln addition, the Mll also oharges
an upfront fee (1 per oent of the loan amount) and a prooessing fee (2 per
oent of the loan amount) from its borrowers. CRe3A also provides life
insuranoe oover toits borrowers, under atie-up with aninsuranoe oompany.
CRe3A's growth has been moderate, shown by a oompounded annual
growth rate (CA0R) of around 65 per oent in its disbursements, and
85 per oent in its total loans outstanding, between 2005-06 (refers to
finanoial year, April 1toMaroh 31) and2007-08.
CRe3A has good asset quality, refleoted in 100 per oent of the portfolio
being ourrent (oolleotions ontime) as on3eptember 30, 2008
1he funding mix is average, as on Maroh 31, 2008, 63per oent of its total
borrowings were from two apex Mlls and another 23 per oent from
private banks. Beoause of its relianoe ontwoapex Mlls, its ability toraise
funds is limited oompared to that of other Mlls with more diverse
funding profiles.
CRe3A's growth will be funded largely through borrowings, as its ourrent
legal status does not allowit to raise equity oapital. lnternal aooruals are
not likely to be suffioient to support the sooiety's growth plans, CRl3lL
expeots CRe3A tomaintainits high gearing levels.
CRe3A's operational self-suffioienoy (033) ratiohas inoreasedduring the
past two years, and was 126.30 per oent for the six months ended
per oent, but it is unlikely to inorease signifioantly beoause of the
inoreasing oost of borrowing.
Centre fer Rural Recenstructlen
threugh 5eclal Actlen
Members No. 36,069 26,412 24,788
Borrowers No. 32,491 24,120 21,871
Loan 0/3 Rs. Mn 200 139 96
2008 2001
Net worth Rs. Mn 18.13 15.45 5.43
Current portfolio 100 100 100
PAR>90days - - -
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. v Prabhu Uas,
Audlter: K 3 N Raju & Asso-
oiates,Bhimavaram
Centact betalls:
#78-9-11 3ri Ranga 3treet , 0andhipuram-lll
Rajahmundry - 533103, Andhra Pradesh
1el: +91-883-2468418, lax: +91-883-2468540
Lmail: vprabhuoas,ahoo.oo.|n
web: www.oresam|orof|n.oom
lndia 1op 50 Miorofinanoe lnstitutions Z1
0
100
200
300
400
12,000
16,000
20,000
24,000
28,000
32,000
Mar-08
Grewth 1rend
3ep-08
R
s
.

M
n
Mar-07
Net worth Rs. Mn 7.64 4.26 1.54
PAR>90days 0.15 0.15 0.12
Abeut theMFl
Community Uevelopment Centre (CUC) is anN00-Mll that foouses onsooial
development and miorofinanoe. 1he N00-Mll follows a self-help group
(30) model, with 12 to 15 members in a group. CUC started forming 30s
for the first time in 1997-98 (refers to finanoial year, April 1 to Maroh 31), in
Ueoember 1998, it mobilised its first loan for miorofinanoe from Rashtriya
MahilaKosh.
CUC offers three loan produots with different tenures, at an interest rate of
18 per oent on reduoing balanoe basis. As on 3eptember 30, 2008, it had
31,876borrowers aoross six distriots of 1amil Nadu, mainly inrural areas.
CUC's growth has been above-average, evidenoed in a oompounded
annual growth rate (CA0R) of around 286 per oent in its disbursements,
and 108 per oent in its total loan outstanding, between 2005-06 and
2007-08. lurther, during the first half of 2008-09, the Mll has expanded
its operations tosemi-urbanandurbanareas in1amil Nadu.
CUC has good asset quality, refleoted in 99.4 per oent of the portfolio
being ourrent (oolleotions on time) as on 3eptember 30, 2008. 1he
portfolio-at-risk greater than 90 days is also low, at 0.15 per oent as on
the above date.
1he N00-Mll's gearing remains high at 16.12 times as on 3eptember
30, 2008, though this is a signifioant deoline from a very high level of
about 43 times as on Maroh 31, 2007. CRl3lL believes that the high
gearing may oonstrain CUC's ability to grow the loan portfolio in the
medium tolong term.
CUC's operational self-suffioienoy (033) ratio has improved during the
past two years, and was 140 per oent for the six months ended
per oent, but aninorease ininoremental borrowing oosts is likely to affeot
CUC's profitability inthe medium term.
Cemmunlty bevelement Centre
ear ef cemmencement
Legal status: 1rust
Lendlng medel: 30
Chlef xecutlve: Mr. P. Pandian,
Lxeoutive Uireotor
Audlter: Miohael Assooiates,
Uindigul
Centact betalls:
Main road, (near 0hat Road)
0enguvarpatti 625 203, 1heni distriot, 1amil Nadu
1el: +91- 4546-236538, lax: +91- 4546-236778
Lmail: ooopanbsn|.|n
web: www.ooo|no|a.org.|n
Members No. 36,710 31,311 27,235
Borrowers No. 31,876 26,664 15,680
Loan 0/3 Rs. Mn 124 105 68
2008 2001
ZZ lndia 1op 50 Miorofinanoe lnstitutions
Grewth 1rend
R
s
.

M
n
Loan o/s
0
20,000
40,000
60,000
80,000
100,000
120,000
Borrowers
3ep-08
Uisbursements
0
200
400
600
800
1,000
1,200
Mar-08
Abeut theMFl
Lquitas Mioro linanoe lndia P Ltd. (Lquitas) was inoorporated in 1une 2007
as uPUB Mioro linanoe Pvt. Ltd., the name was ohanged to the present one
in lebruary 2008. Lquitas started its operations in Chennai on Ueoember
15, 2007, and has expanded to 11 distriots of 1amil Nadu as on 3eptember
30, 2008. Lquitas mainly uses the 0rameenBankmodel of lending.
Lquitas lends to urban women. lt differentiates itself from other Mlls by
oolleoting repayments on a fortnightly basis, vis--vis weekly oolleotions by
most other Mlls. Lquitas's loans range from Rs.10,000 to Rs.15,000,
interest is oharged at 10 to 14 per oent per annum (flat basis), and tenures
range from 6to24months.
Although a start-up with a short traok reoord, Lquitas has grown rapidly,
and had disbursed Rs.1.13 billion until 3eptember 30, 2008. 1he
oompany's oompetent senior management and strong information
teohnology and baok-offioe infrastruoture have enabled it to expand its
operations rapidly.
As on 3eptember 30, 2008, 100 per oent of the portfolio was ourrent
(oolleotions on time). with less than a year of operations, the oompany's
loan portfolio is yet to season, the true asset quality will be evident only
when Lquitas oompletes one loan oyole. Nevertheless, CRl3lL believes
that the Mll's proaotive oredit and operational risk management
mitigates the risks it faoes inunseouredlending.
As on 3eptember 30, 2008, Lquitas had oapital of Rs.653 million, whioh
makes it one of the highest-oapitalised start-up Mlls in lndia. 1he
oompany has raised oapital from several miorofinanoe investment
vehioles during 2008. owever, this is inadequate for the level of
business that the oompany expeots to undertake over the next two to
three years. enoe, the oompany proposes to raise additional oapital of
Rs.1.5billioninthe next twoyears.
Uuring the first half of 2008-09 (refers to finanoial year, April 1 to Maroh
31), the oompany aohieved an operational self-suffioienoy (033) of 93
per oent. 1he oompany had a high operating expense ratio of 12.14 per
oent for six months ending on 3eptember 30, 2008, beoause of high
start-up oosts and head offioe expenses. CRl3lL expeots the profitability
to improve in the medium term with deoline in operating expense levels,
as Lquitas attains eoonomies of soale.
qultas Mlcre Flnance lndla P Ltd.
Partlculars Unlt 5et. Mar.
Branohes No. 36 8
Lmployees No. 440 73
Members No. 108,352 16,166
Borrowers No. 108,352 16,166
Uisbursements Rs. Mn 1,125 175
Loan 0/3 Rs. Mn 1,007 167
2008
Net profit Rs. Mn -3.04 -19.70
Portfolioyield 20.52 9.73
lund-basedyield 18.02 10.50
Cost of borrowings 14.48 7.07
0perating expense ratio 12.14 39.85
Returnonnet worth NM NM
Returnonassets NM NM
0perational self-suffioienoy 93.11 27.71
Current portfolio 100 100
PAR>90days - -
Uebt/Net worth 1imes 1.00 0.58
Unlt 5et-08 Mar-08 Key Flnanclal Rlghllghts
lar|os are annua||seo, operar|ons for 2007-03 were on|, for 3.5 monrhs
NM. Nor mean|ngfu|
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. P N vasudevan,
Managing Uireotor
Audlter: Ueloitte askins &
3ells, Chennai
Centact betalls:
4th lloor, 1emple 1owers, 672, Anna 3alai,
Nandanam, Chennai - 600035, 1amil Nadu
1el: +91-44-4299 5001, lax: +91- 44-4299 5050
Lmail: vasuoevanpnequ|ras.|n
web: www.equ|ras.|n
lndia 1op 50 Miorofinanoe lnstitutions ZJ
300
800
1,300
100,000
120,000
140,000
160,000
Mar-08
Grewth 1rend
3ep-08
R
s
.

M
n
Mar-07
Abeut theMFl
L3Al Miorofinanoe & lnvestments Pvt. Ltd. (LMllL), a non-banking finanoe
oompany (NBlC) oommenoed its miorofinanoe operations in Maroh 2008
after taking over a Rs.697-million loan portfolio from Lvangelioal 3ooial
Aotionlorum (L3Al). L3Al, a sooiety, was establishedin1992by individuals
who shared the objeotive of working for the poor and marginalised. L3Al
startedits miorofinanoe programme in1995. 1he Mll offers loans under the
0rameen model, and oharges an interest rate of 15 per oent (flat basis) for
its general loan produot, with a maximum tenure of one year. lt oharges 15
per oent half-yearly diminishing interest per annum, with loantenures of four
to seven years, for its housing loans. As on 3eptember 30, 2008the Mll had
operations in Kerala, 1amil Nadu, Chhattisgarh, Madhya Pradesh, and
Maharashtra.
1he Mll has reported signifioant growth between 2005-06 (refers to
finanoial year, April 1 to Maroh 31) and 2007-08: its member base
inoreased at a oompounded annual growth rate of 68 per oent, its
disbursements at 145per oent, andits loanoutstanding at 98per oent.
0ver the past year, LMllL has oonoentrated on strengthening its internal
oontrols and raising adequate oapital for its envisioned operations.
Consequently, during first six months of 2008-09, the Mll's loan
outstanding inoreased marginally to Rs. 765 million as on 3eptember
30, 2008from Rs.697millionas onMaroh 31, 2008.
LMllL's tangible net worth was negative after adjustment for intangible
assets of Rs.89.96 million as on 3eptember 30, 2008. 1hese assets
represent the fee paid by LMllL to L3Al for business prooess know-how
and oustomer aoquisition. 1he oompany has raised additional equity
oapital of Rs. 87 million during seoond half of 2008-09, whioh would
enable it to register a positive tangible net worth. owever, it would need
additional oapital in the medium term to meet the regulatory minimum
oapital adequaoy requirements onoe it beoomes a systemioally
important, non-deposit taking NBlC (NBlC-NU-3l) in2010.
Asset quality has deteriorated marginally, whioh is refleoted in the
amount of portfolio being ourrent (oolleotions on time) deolined
marginally to 95.22 per oent as on 3eptember 30, 2008 from 95.44 per
oent as of Maroh 31, 2008.
CRl3lL expeots LMllL's profitability to improve over the medium term,
despite inorease inoperating expense levels, beoause the Mll inoreased
lending rates in 1uly 2008 and also brought in new produot offerings: in
Ueoember 2008, the Mll launohed livelihood training and oross selling
of insuranoe produots whioh is expeoted to improve its fee-based inoome
levels.
5AF Mlcreflnance and lnvestments Pvt. Ltd.
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. Paul 1homas,
Managing Uireotor
Audlter: A 1ohn Morris & Co.,
Chennai
Centact betalls:
ephzibah Complex, P B No. 12, Mannuth P.0.
1hrissur, Kerala - 680651
1el: +91-487-2371472
lax: +91-487-2375445
Lmail: esafpau|gma||.oom,esafhqrorgma||.oom
Net profit Rs. Mn 7.01 8.05 7.25
Net worth Rs. Mn -12.12 25.02 15.05
PAR>90days 0.36 0.40 1.22
Uebt/Net worth 1imes -67.22 26.36 35.23
MFlL 5AF
Lmployees No. 1,276 1,085 950
Members No. 242,826 222,675 178,037
Borrowers No. 154,385 146,004 110,122
Uisbursements Rs. Mn 708 1,252 933
Loan 0/3 Rs. Mn 765 697 547
MFlL 5AF
2008 2001 2008
0
500
1,000
1,500
80,000
100,000
120,000
140,000
Mar-08
Grewth 1rend
3ep-08
R
s
.

M
n
Mar-07
Net worth Rs. Mn 234.0 132.1 31.97
Current portfolio 100 100 96.39
PAR>90days - - 3.27
Abeut theMFl
luture linanoial 3ervioess Ltd. (ll3L), a non-banking finanoial oompany
(NBlC), started operations in 2007-08 (refers to finanoial year, April 1 to
Maroh 31), the oompany beganby aoquiring the borrowers of the Aots Mahila
Mutually Aided Co-operative 1hrift 3ooiety (AMMAC13) and of the Aotion for
Community 3ervioes 3ooiety (AC13). 1hese have been disbursed fresh loans
through ll3L. AMMAC13, registered in 1998, was started by AC13, a non-
governmental organisation(N00) foousedondevelopment.
ll3L follows the 0rameen Bank model of lending and offers loans for 12 to
15 months. lor loans with monthly instalments, it oharges interest rates
between18and 21per oent per annum on reduoing balanoe basis, on loans
with weekly instalments, the Mll oharges interest of 15 per oent on a flat
basis for the first two oyoles of a loan (12.5 per oent on a flat basis from the
third oyole). ln addition, the oompany oolleots 2 per oent of the loan amount
upfront as loan prooessing fee. As on 3eptember 30, 2008, the Mll had an
outstanding loan portfolio of Rs.811.34 million and 135,488 borrowers
aoross three states.
1he miorofinanoe programme has reported a signifioant growth between
2005-06 and 2007-08: its borrower base inoreased at a oompounded
annual growth rate of 56 per oent, its disbursements at 83 per oent, and
its loans outstanding at 71 per oent. ll3L has aohieved the growth by
penetrating deeper into its existing areas, rather than expanding
branohes.
ll3L has good asset quality as it oolleots 100 per oent of its billing every
week. 1he Mll is striot in oolleoting, and rigorous in following up
overdues.
Uuring 2007-08, the promoters, their friends and relatives, and staff at
ll3L and AMMAC13, infused oapital into the oompany. ln addition, the
Mll raised Rs.70 million of equity during the first six months of 2008-09
tofurther strengthenits oapitalisation.
ll3L has strong profitability, with an operational self-suffioienoy ratio of
about 177 per oent for the six months ended 3eptember 30, 2008.
CRl3lL expeots the Mll's operating profitability to be supported by
healthy fee-based inoome and low operating expense levels, operating
expense levels are likely to remain at 5 per oent to 6 per oent, given that
operations are foousedinurbanandsemi-urbanareas.
Future Flnanclal 5ervlcess Ltd.
AMMAC15
Members No. 141,229 130,507 93,488
Borrowers No. 135,488 127,618 80,361
Uisbursement Rs. Mn 762 1414 789
Loan 0/3 Rs. Mn 811 766 457
0onso||oareo m|orof|nanoe operar|ons of 4MM401S ano 401S
2008 2001*
FF5L
lndia 1op 50 Miorofinanoe lnstitutions Z
ear ef cemmencement
Lendlng medel: 30
Chlef xecutlve: Mr. 0Uasaratha Reddy,
Audlter: P. 3. Chaitanya & Co.,
Madanapalle
Centact betalls:
4-368, C B Road, 0reamspet, Chittoor - 517002,
Andhra Pradesh
1el: +91-8572-231869, lax: +91-8572-231869
Lmail: ffs|mf|gma||.oom
0
50
100
150
200 27,000
Mar-08
Grewth 1rend
3ep-08
R
s
.

M
n
18,000
21,000
24,000
Mar-07
Abeut theMFl
0andhi 3maraka 0rama 3eva Kendram (0303K), inoorporated in 1960,
was registered as a non-profit, seoular and non-politioal organisation for
serving all seotions of the people. 1he N00 undertakes various
developmental aotivities, and started forming self-help groups (30s) in
1996, until 1999, 0303K arranged for the 30s to borrow direotly from
banks.
0303K started lending during 1999-2000(refers to finanoial year, April 1 to
Maroh 31) and ourrently offers 3-year loans to 30s, at an interest rate of
13 per oent per annum on a reduoing balanoe basis: these loans are given
primarily for inoome generation. lnaddition, 0303K oolleots servioe oharges
of Rs.250at the time of disbursement from the 30. 1he quantum of loanto
the 30 is linked to the internal savings of the group a lending approaoh
that is followedby most oommeroial banks.
0303K has shown limited growth, refleoted in oompounded annual
growth rate (CA0R) of 6per oent in member base and 36per oent in total
loan outstanding during the period between 2005-06 and 2007-08. 1he
growth was limited as the organisation was streamlining its operations,
whioh resulted in loan disbursements registering negative growth during
2007-08.
0303K has good asset quality, refleoted in 99 per oent of the portfolio
being ourrent (oolleotions ontime) as of 3eptember 30, 2008.
1he N00-Mll's gearing levels were very high at 100 times as on
3eptember 30, 2008. 0303K's miorofinanoe operations have been
oonsistently overleveraged, the net worth was low at Rs.1.73 million as
on the above date. CRl3lL believes that the high gearing may oonstrain
0303K's ability to grow the loan portfolio in the medium to long term.
lurther, the legal status limits the N00-Mll from raising equity oapital.
0303K operates on thin interest rate spreads and its profitability is
highly susoeptible to its oost of borrowings. 1he oost of borrowing has
inoreased for the Mll seotor during 2008-09, and therefore 0303K's
profitability is expeotedtoremainlow.
0perating expense levels are low beoause the miorofinanoe program is
oross-subsidised by the N00-Mll's other development programmes.
CRl3lL expeots 0303K's miorofinanoe programme to maintain low
operating expense levels.
Gandhl 5maraka Grama 5eva Kendram
Members No. 68,096 67,632 64,944
Borrowers No. 24,201 23,552 26,768
Loan 0/3 Rs. Mn 162 150 131
2008 2001
Net worth Rs. Mn 1.73 1.65 1.64
PAR>90days 0.70 0.53 0.78
ear ef cemmencement
Lendlng medel: 30
Chlef xecutlve: Mr. K. 0. 1agadeesan,
0eneral 3eoretary
Audlter: v. Ramaohandran &
Co., Alappuzha
Centact betalls:
3 L Puram,
Alappuzha - 688523,
Kerala
1el: +91-478-2865493
Lmail: ganoh|kenoram,ahoo.oo.|n
Z lndia 1op 50 Miorofinanoe lnstitutions
400
600
800
1,000
1,200
1,400
1,600
1,800
50,000
65,000
80,000
95,000
110,000
125,000
140,000
155,000
Grewth 1rend
Mar-08 3ep-08 Mar-07
R
s
.

M
n
Net profit Rs. Mn 4.98 4.45 21.20
Net worth Rs. Mn 127.25 115.73 37.51
Current portfolio 99.98 100 100
PAR>90days - - -
Unlt 5et-08 Mar-08** Mar-01 Key Flnanclal Rlghllghts
Abeut theMFl
0rameen linanoial 3ervioes Pvt. Ltd. (0l3PL) was inoorporated in 1991 as
3anni Colleotion Pvt. Ltd.: it was aoquired by its ourrent management in
2007. 3ubsequently, in 0otober 2007, 0l3PL took over the miorofinanoe
programme of 1. Muniswamappa 1rust (1M1, popularly known as 'Crameen
Koora'). Crameen Koora started its miorofinanoe programme in 1999, with
seedoapital support from 0rameen1rust, Bangladesh.
0l3PL lends to ten-member groups under the 0rameen Bank model of
lending and offers three different loan produot offerings to its olients. 1he
Mll's oore loan produot is a 50-week loan with a flat interest rate of 12 per
oent. 1he Mll oharges an upfront fee of 1 to 3 per oent of the loan amount,
depending upon the borrower profile (new or repeat) and the loan produot.
1he oompany also provides health insuranoe and oattle insuranoe to its
borrowers through tie-ups with insuranoe oompanies. As on 3eptember
2008, the Mll had a borrower base of more than 150,000borrowers aoross
17 distriots of Karnataka. Uuring seoond half of 2008-09 (refers to finanoial
year, April 1 to Maroh 31), the Mll has expanded its operations to
Maharashtra and has piloted individual loans in two urban branohes at
Bangalore and1umkur.
0l3PL oommenoed its miorofinanoe operations with an existing, large
olient base and adequate infrastruoture aoross Karnataka. 1he Mll has
anexperienoedseoondline of management tooversee its operations.
1he Mll has maintained good asset quality, with 99.98 per oent of its
portfolio being ourrent (oolleotion on time) as on 3eptember 30, 2008.
owever, with around 20 per oent of its borrowers graduating to the next
loan oyole, and given the Mll's norm of providing up to three loan
produots simultaneously toaborrower, asset quality oouldfaoe stress.
1he Mll has a diverse funding mix, with aooess to lending from private
banks, foreign banks, publio seotor banks, and other institutions. CRl3lL
believes that the Mll will be in a position to be able to raise resouroes in
time tofundits expansionplans.
As of 3eptember 30, 2008, 0l3PL had Rs.128 million of oapital with a
fresh infusion from promoters and an institutional investor. 0iven the
growth plan, 0l3PL has to raise more oapital to maintain the
oapitalisationmandatedfor asystemioally important NBlC.
Uuring the first half of 2008-09, the oompany aohieved an operational
self suffioienoy ratio of 106.41 per oent, despite branoh expansion and
other start-up oosts, beoause of the inorease in produotivity and
effioienoy of existing branohes.
Grameen Flnanclal 5ervlces Pvt. Ltd.
ear ef cemmencement
Legal status: Private Ltd. Co.(NBlC)
Lendlng medel: 1L0
Chlef xecutlve: Mr. 3uresh K. Krishna,
Managing Uireotor
Audlter: M. 3. Kamath &
Assooiates, Bangalore
Centact betalls:
th
1P Nagar, 9 Phase, Avalahalli, Anjanapura Post,
Bangalore - 560062, Karnataka
1el: +91-80-28436237 lax: +91-80-28436577
Lmail: |nfogrameenkoora.org
web: www.grameenkoora.org
lar|os are annua||seo s|x monrhs operar|ons on|,
Members No. 167,875 139,115 109,251
Borrowers No. 153,453 117,547 82,562
Uisbursements Rs. Mn 1,607 1,668 916
Loan 0/3 Rs. Mn 1,287 826 460
2008 2001
GF5PL GK
GF5PL GK
lndia 1op 50 Miorofinanoe lnstitutions Z
500
2,000
3,500
5,000
150,000
200,000
250,000
300,000
Mar-08
Grewth 1rend
3ep-08
R
s
.

M
n
Mar-07
Net profit Rs. Mn 41.93 24.68 9.45
Net worth Rs. Mn 231.42 189.49 44.01
Portfolioyield# 32.46 16.22 21.25
lundbasedyield# 28.12 7.74 18.45
Current portfolio 99.54 99.36 NA
PAR>90days 0.42 0.40 NA
Unlt 5et-08 Mar-08# Mar-01** Key Flnanclal Rlghllghts
Abeut theMFl
0rama vidiyal Mioro linanoe Pvt. Ltd. (0vMlL) is a 1iruohirappalli-based
NBlC whioh startedits miorofinanoe operations inearly 2008. Uuring 2007-
08 (refers to finanoial year, April 1 to Maroh 31), the 0rama vidiyal 1rust
(0v1), a leading N00-Mll in 1amil Nadu, whioh started its miorofinanoe
programme in 1996, transferred its entire loan portfolio to 0vMlL. As of
3eptember 30, 2008, the Mll had more than 330,000 members aoross
126branohes in1amil Nadu.
0vMlL follows a modified version of the 0rameen Bank model of lending
and offers loans at 12 per oent interest (flat rate basis) rate per annum with
tenures ranging from 10 weeks to 100 weeks. 1he loan size varies from
Rs.1,000 to Rs.50,000 depending on the repayment oapaoity of individual
borrowers. ln addition, the Mll oharges 3 per oent of the loan amount as
upfront fee for all loans exoept speoial loans (3Ls). ln oase of 3Ls, 0vMlL
oolleots 7.5 per oent upfront oharges, and oharges no interest. 1he Mll also
offers life insuranoe through a tie-up with an lndian private seotor insuranoe
oompany.
0vMlL has goodasset quality, refleotedin99.54per oent of the portfolio
being ourrent (oolleotions on time) and portfolio at risk greater than 90
days (PAR>90days) of 0.42per oent as on3eptember 30, 2008.
0vMlL's operational self-suffioienoy (033) ratio as of 3eptember 30,
2008 was high at 141.53 per oent, on aooount of strong fee based
inoome.
As on Maroh 31, 2008, 0vMlL aooessed 85 per oent of its borrowings
from aone single souroe - 0v1. CRl3lL expeots that the oost of borrowings
will inorease onoe the Mll starts borrowing from other finanoial
institutions for its lending program.
Uuring 2007-08, 0vMlL raised equity oapital of Rs.147 million from two
sooial investors, as a result, the debt-to-net worth ratio was oomfortable
at 4.95 times as on 3eptember 30, 2008. CRl3lL believes that while
ourrent oapital levels are adequate to support growth in the short to
medium term, 0vMlL will need to raise oapital in the next two years in
order tosupport expansion.
Grama vldlyal Mlcre Flnance Pvt. Ltd.
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. Arjun Muralidharan,
1amil Nadu
Centact betalls:
Paripoorna 1owers, No.9 Manoranjitham 3treet
Anamalai Nagar, 1iruohirappalli - 620018,
1amil Nadu
1el: +91-431- 2763056, lax: +91-431- 2750393
Lmail: asaoeverh.ner web: www.gvmf|.oom
Partlculars Unlt 5et. Mar. Mar.**
Lmployees No. 1,337 1,018 675
Members No. 328,965 263,022 191,224
Borrowers No. 288,311 224,108 181,328
Loan 0/3 Rs. Mn 1,316 1,156 807
2008 2001
lar|os are annua||seo # rhree monrhs' operar|ons on|,
performanoe of Cv 1rusr
0
100
200
300
400
500 75,000
60,000
Mar-08
Grewth 1rend
3ep-08
R
s
.

M
n
0
15,000
30,000
45,000
Mar-07
Abeut theMFl
0ram utthan operates in 0rissa. 0ram utthan started its operations during
1990-91(refers to finanoial year, April 1to Maroh 31) in Kendrapara distriot,
with a foous on oommunity development programmes. 1he N00-Mll started
lending to self-help groups (30s) in 1998-99, and to joint liability groups
(1L0s) from 2006-07, insemi-urbanandurbanareas.
under the 30 model, 0ram utthan extends loans of up to Rs.40,000 per
30, for 24 to 36 months, at an interest rate of 24 per oent per annum
(reduoing balanoe basis). ln the oase of 1L0s, loans of up to Rs.50,000 per
1L0 are extended for tenures ranging from 104 days to 278 days, at an
interest rate of 14 per oent (flat basis). As on 3eptember 30 2008, the N00-
Mll hadapresenoe insevenooastal distriots of 0rissa.
0ram utthan's growth has been reasonably good, indioated by a
oompounded annual growth rate (CA0R) of around 60 per oent in its
member base, 124per oent in its disbursements, and 116per oent in its
loanoutstanding, from 2005-06to2007-08.
0ram utthan has good asset quality: 98 per oent of the portfolio was
ourrent (oolleotions ontime) as on3eptember 30, 2008. 1he portfolio-at-
risk greater than90days remains goodthough it has deolinedmarginally
to 0.36 per oent as on 3eptember 30, 2008 from 0.17 per oent as on
Maroh 31, 2008.
1he N00-Mll was highly leveragedwith adebt-to-net worth ratioof 44.84
times as on 3eptember 30, 2008, though this is an improvement from a
level of more than 300 times as on Maroh 31, 2007. CRl3lL believes that
high gearing may oonstrain 0ram utthan's ability to expand its loan
portfoliointhe medium term.
0ram utthan mobilises low-oost deposits from its members, whioh
aooounted for 28 per oent of the total borrowings as on 3eptember
2008.
0ram utthan's operational self-suffioienoy (033) ratio has improved
during the past twoyears, andwas 110per oent for the six months ended
per oent, but may not inorease signifioantly beoause of the inoreasing
oost of borrowing.
0perating expense levels are low beoause the N00-Mll has grown its
assets mostly through deeper penetration in its existing area of
operation. CRl3lL expeots the Mll to oontinue to maintain low operating
expenses over the medium term.
Gram Utthan
Members No. 85,464 74,142 58,149
Borrowers No. 64,100 57,317 41,343
Loan 0/3 Rs. Mn 439 376 239
2008 2001
Net worth Rs. Mn 10.45 6.91 0.84
PAR>90days 0.36 0.17 0.26
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. 0ovind Uash,
3eoretary
Audlter: Romesh Kumar &
Co., Bhubaneshwar
Centact betalls:
A1/P.0.-Pimpuri, via-Rajkanika
Kendrapara, 0rissa - 754220
1elefax: +91-6725-276225
Lmail: gramurrhanngoreo|ffma||.oom
web: www.gramurrhan.org
lndia 1op 50 Miorofinanoe lnstitutions Z9
0
50
100
150
200
250
300
350
80,000
90,000
70,000
60,000
50,000
Loan o/s Uisbursements
Grewth 1rend
R
s
.

M
n
10,000
20,000
30,000
40,000
Borrowers
3ep-08 Mar-07 Mar-08
Net surplus Rs. Mn 7.62 -1.73
Portfolioyield # #
lund-basedyield # #
Cost of borrowings 10.85 10.72
0perating expense ratio # #
Returnonnet worth # #
Returnonassets # #
0perational self-suffioienoy # #
Current portfolio 96.00 99.51
PAR>90days 0.08 0.14
Uebt/Net worth 1imes # #
Unlt 5et-08 Mar-08 Key Flnanclal Rlghllghts
Abeut theMFl
and in and 1amil Nadu (i) is a publio oharitable trust registered in
2002. lt was set up with a foous on ohild labour elimination, eduoation, and
the empowerment of women. Mr. Peroy Barnevik, former ohairman of
several oompanies inoluding Asea Brown Boveri and lnvestor AB is engaged
both as advisor and major donor to i sinoe 2002. ln addition, the N00-
Mll reoeives funds from individuals and institutions, faoilitated by i
3weden and i united Kingdom. 1he N00-Mll follows the self-help group
(30) lending model.
As on Maroh 31, 2008, 46per oent of total 30s formed by iwere direotly
finanoed by i, while the remaining were oredit-linked to banks. 1he N00-
Mll offers loans at 12 per oent per annum on a reduoing balanoe basis, for
12to 16months. lnaddition, the organisationalso oharges anupfront fee (3
per oent of the loan amount) and a dooumentation fee (Rs.10 to Rs.500)
from its borrowers.
i has good asset quality, as refleoted in portfolio at risk greater than
90days (PAR>90days) of 0.08per oent as on3eptember 30, 2008.
i does not segregate the subsidised and on-lending aotivities of its
miorofinanoe programme. As a result, the inoome and expenditure
statement for the miorofinanoe programme does not refleot the true
finanoial performanoe of the miorofinanoe programme.
i's miorofinanoe programme registered a surplus of Rs.7.62 million
during first half of 2008-09 (refers to finanoial year, April 1 to Maroh 31)
as against a defioit of Rs.1.73 million during 2007-08. CRl3lL believes
that the multiple objeotives of the N00 suoh as group promotionfor 30-
bank linkage, proposed on-lending to 30s at 15 per oent in a few
distriots, and ourrent lending at 19.6 per oent (effeotive rate), would
result in the miorofinanoe programme not being sustainable without
grants.
0iven the multiple approaohes being pursued by the N00-Mll with
regards to miorofinanoe aotivity (inoluding a subsidy based lending
programme), the oore issue for i's miorofinanoe programme is not
oapitalisationbut attaining operational self-suffioienoy.
Rand ln Rand 1amll Nadu
ear ef cemmencement
Legal status: 1rust
Lendlng medel: 30
Chlef xecutlve: Ms. Kalpana 3ankar,
Audlter: A Nagarajan,
Arookiasamy &
Raj Assooiates, Chennai
Centact betalls:
90 A, Nasarathpettai village, 0pp. Paohayappa's Men's
College, Little Kanoheepuram,
Kanoheepuram - 631503, 1amil Nadu
1el: +91-44-2726 7065, 2726 8895
lax: +91- 44-27269301
Lmail: ka|pana.sankarh|hseeo.org
web: www.h|hseeo.org
Members No. 334,016 295,190 186,542
Borrowers No. 85,346 80,001 14,021
Loan 0/3 Rs. Mn 264 220 35
2008 2001
#l|l ooes nor segregare rhe subs|o|seo ano on |eno|ng aor|v|r|es of |rs m|orof|nanoe programme.
1herefore, rhe rar|o ana|,s|s of l|l's m|orof|nanoe programme |s nor mean|ngfu|.
J0 lndia 1op 50 Miorofinanoe lnstitutions
0
150
200 25,000
Mar-08
Grewth 1rend
R
s
.

M
n
10,000
15,000
20,000
Mar-07 3ep-08
50
100
Abeut theMFl
lndian Assooiation for 3avings and Credit (lA3C), oo-promoted by UlC
Limited and Palmyrah workers' Uevelopment 3ooiety (PwU3), oommenoed
its miorofinanoe operations in 1anuary 1999. As on 3eptember 30, 2008, it
hadapresenoe innine distriots of 1amil Nadu, andinone distriot inKerala.
1he Mll offers loans for 2 to 3 years with interest rates of 15 per oent to 20
per oent per annum on a reduoing balanoe basis: the loans are for both
inoome generation and oonsumption. lA3C also extends 10-year housing
loans at an interest rate of 18 per oent per annum on reduoing balanoe
basis.
lA3C's disbursements and loan portfolio have not grown in the last three
years.
lA3C's asset quality has deteriorated sinoe 2004-05, evident from 79.10
per oent of the loan portfolio being ourrent (oolleotions on time) as on
3eptember 30, 2008. A laok of monitoring during 2004-05 resulted in
several loans givento30s during this periodturning delinquent.
1he shareholders of lA3C have infused oapital during the first six months
of 2008-09, whioh improved its net worth to Rs.33.5 million as on
3eptember 30, 2008 from Rs.13.2 million as on Maroh 31, 2008. As a
result, the debt-to-net worth ratio improved signifioantly to 5.8 times as
on3eptember 30, 2008.
lA3C's ourrent profitability is low with operational self suffioienoy (033)
ratio at just above 100per oent for the first six months ended 3eptember
30, 2008. 1his refleots large write-offs and provisions by the Mll for its
delinquent loans during that period.
lndlan Asseclatlen fer 5avlngs and Credlt
Members No. 41,975 46,115 45,968
Borrowers No. 20,745 14,960 14,813
Loan 0/3 Rs. Mn 183 182 184
2008 2001
Net worth Rs. Mn 33.49 13.18 13.00
PAR>90days 18.50 17.58 15.41
ear ef cemmencement
Legal status: 3eotion 25Company
Chlef xecutlve: Mr. B. Mahendran,
Audlter: 3. B. Billimoria &
Co., Coimbatore
Centact betalls:
726 B, 3eoond lloor, 3ri venky Complex,
Cross Cut Road, Coimbatore - 641 012, 1amil Nadu
1el: +91-422- 4389867 / 438 7867 / 438 8867
Lmail: mahenoran.b|aso.|n
web: www.|aso.|n
lndia 1op 50 Miorofinanoe lnstitutions J1
Branohes No. 11 9 5
Members No. 88,959 48,161 16,642
Borrowers No. 56,315 27,863 9064
Loan 0/3 Rs. Mn 178 78 18
2008 2001
Abeut theMFl
lnitiatives for Uevelopment loundation(lUl) is aBangalore-basedN00-Mll,
registered as a trust in 2001. lUl is engaged in many sooial development
programmes, suoh as entrepreneurship development, agrioultural
development, and watershed programmes. lUl started miorofinanoe with
its own funds in 2004-05 (refers to finanoial year, April 1 to Maroh 31), and
ourrently lends to self-help groups (30s) and to other N00-Mlls. 1he
organisation reoeived its first external funding for miorofinanoe, from
CanaraBank, in2005-06(refers tofinanoial year, April 1toMaroh 31).
lUl offers loans for 12 to 36 months to 30s, and for 12 to 24 months to
other N00-Mlls. lnterest is oharged at 15 per oent per annum on reduoing
balanoe basis. 30s have topay 2.25per oent of the loanamount as upfront
oharges, while N00s have to pay 2 per oent. As on 3eptember 30, 2008, lUl
hadaloanportfolioof Rs.178million, andaborrower base of 56,315, aoross
nine distriots of Karnataka.
lUl has reportedasignifioant growth between2005-06and2007-08: its
member base inoreased at a oompound annual growth rate of 179 per
oent, its disbursements at 474 per oent, and its loan outstanding at 518
per oent. Uuring 2008-09, the Mll expanded its operations to semi-
urban and urban areas in Karnataka, whioh is expeoted to signifioantly
inorease its borrower base andloanportfolio.
lUl has good asset quality, refleoted in 99.21 per oent of the portfolio
lUl's gearing at 26.18 times as on 3eptember 30, 2008 is high, and
oould oonstrain its resouroe-raising ability in the medium term. 1o be
able to raise oapital, the Mll plans to transfer its miorofinanoe business
in 2009-10to a reoently-aoquired NBlC: in its ourrent status as a trust, it
has signifioant limitations in being able to raise equity from external
souroes.
with the inorease in soale, the Mll has reported a oonsistent
improvement in its operational self-suffioienoy (033) ratio to 121.30 per
oent during the six months ended 3eptember 30, 2008. CRl3lL expeots
the Mll's profitability to improve marginally in medium term due to
inorease in lending rates and inorease in business volumes during the
seoondhalf of 2008-09.
lnltlatlves fer bevelement Feundatlen
ear ef cemmencement
Legal status: 1rust
Lendlng medel: 30
Chlef xecutlve: Mr. vivekanand N
3alimath,
Managing 1rustee
Audlter: 3ahadev &Assooiates,
Bangalore
Centact betalls:
141/A, 'usha' 25th Cross,
Behind Nijalingappa College, ll Blook, Rajajinagar,
1el: +91-80-2313 1382, lax: +91-80-4128 5558
Lmail: |ofbanga|oregma||.oom
0 0
60,000
50,000
40,000
30,000
20,000
10,000
Mar-08
Grewth 1rend
3ep-08 Mar-07
50
100
150
200
R
s
.

M
n
Net worth Rs. Mn 6.82 4.86 1.90
PAR>90days 0.14 0.15 -
JZ lndia 1op 50 Miorofinanoe lnstitutions
0
150
200
Mar-08
Grewth 1rend
R
s
.

M
n
12,000
24,000
22,000
20,000
18,000
16,000
14,000
3ep-08
50
100
Mar-07
Abeut theMFl
lndur lntideepam MAC3 lederation Ltd. (llMl) was promoted in 2002 by
0RAM, a non-governmental organisation (N00). llMl has 20 registered
mutually-aided oooperative sooieties (MAC3s) under its fold and operates in
AdilabadandNizamabaddistriots of AndhraPradesh.
llMl adopts the federation approaoh, under this, llMl lends to its MAC3s at
an interest rate of 15 per oent per annum on reduoing balanoe basis. 1he
MAC3s, in turn, extend loans to self help group (30s) at 18 per oent per
annum on a reduoing balanoe basis, for tenures ranging from 11 months to
30 months. llMl also oharges a prooessing fee of 1 per oent of the loan
amount. Loan sizes vary from Rs.10,000 to Rs.50,000. llMl offers life
insuranoe and oattle insuranoe to its borrowers through tie-ups with publio
seotor andprivate seotor insuranoe oompanies.
llMl has reoorded a oompound annual growth rate (CA0R) of around 76
per oent in its number of borrowers, 102 per oent in its disbursement,
and 118per oent in its total loans outstanding, between 2005-06(refers
tofinanoial year, April 1toMaroh 31) and2007-08.
llMl's operational self suffioienoy ratio has been moderate at 118 per
oent in the past. As a lender to other oooperatives (MAC3s), it operates
on thin spreads, therefore, the Mll's profitability is susoeptible to
inoreases in its oost of borrowings. 1he Mll has managed to moderate
borrowing oosts, to some extent, by relying on low-interest savings from
the MAC3s.
0perating expense levels at 5.38 per oent for the first six months of
2008-09are unusually high for aninstitutional lender andthese are also
expeotedtoresult inthe earnings profile of the Mll remaining average.
As on 3eptember 30, 2008, 100 per oent of llMl's portfolio was ourrent
(oolleotions on time). owever, at the MAC3 level, there are
delinquenoies, and these oooperatives have been servioing their debt
despite overdues inthe oorresponding assets that they have finanoed.
llMl's gearing has improved to 6.73 times as on 3eptember 30, 2008,
from 16 times as on Maroh 31, 2007, following oapital infusions from
MAC3s, oapital grants, andinternal aooruals.
lndur lntldeeam MAC5 Federatlen Ltd.
Members No. 45,345 45,246 35,356
Borrowers No. 21,396 18,645 13,376
Loan 0/3 Rs. Mn 191 155 144
2008 2001
Net worth Rs. Mn 27.96 20.89 8.97
PAR>90days - 1.02 3.35
ear ef cemmencement
Legal status: Co-operative sooiety
Lendlng medel: 30
Chlef xecutlve: Mr. Bumamaheswara Rao,
Audlter: 3ampath &Ramesh,
yderabad
Centact betalls:
5-67, Uharmaram, Uiohpally Mandal,
Nizamabad - 503230, Andhra Pradesh
1el: +91-8461-245025
lax: +91-8461-245725
Lmail: |nomaosfeo,ahoo.oom
lndia 1op 50 Miorofinanoe lnstitutions JJ
50
450
400
350
300
250
200
150
100
4,200
42,000
37,800
33,600
29,400
25,200
21,000
16,800
12,600
8,400
Mar-08
Grewth 1rend
3ep-08
R
s
.

M
n
Mar-07
Abeut theMFl
1analakshmi linanoial 3ervioes Pvt. Ltd. (1l3PL), inoorporated in 1uly 2006,
oommenoed miorofinanoe operations in April 2008 by aoquiring the assets
and liabilities of 1analakshmi 3ooial 3ervioes (133), a not-for-profit oompany.
ln 1uly 2006, 133 aoquired the assets and liabilities of the Bangalore urban
Miorofinanoe Programme that was operated by 3anghamithra Rural
linanoial 3ervioes, and oommenoed its own miorofinanoe programme
thereafter.
1l3PL lends to self help groups (30s) formed by non-governmental
organisations (N00s) with whom it has tie-ups. ln addition, it promotes
mutual guarantee groups (M00s), this lending model targets potential
borrowers through a referral-oum-guarantee system. 1he Mll's loans are for
one to three years, and it oharges 24 to 33 per oent interest per annum on a
reduoing balanoe basis.
1he Mll's loan portfolio shrank to Rs. 280 million as on 3eptember 30,
2008 from Rs.356 million as on Maroh 31, 2008. 1his was beoause the
Mll moderated its disbursement growth during first six months of 2008-
09, as it was implementing oustomisedsoftware for its operations.
1he asset quality of the Mll is weaker that that of other mid sized Mlls,
whioh is refleoted in 88.60 per oent of the portfolio being ourrent
(oolleotions on time) as on 3eptember 30, 2008. 1his improved from
87.12 per oent in Maroh 2008 after the write-off of Rs.3.73 million of
loans during the first half of 2008-09 (refers to finanoial year, April 1 to
Maroh 31). 1he weakness in asset quality is on aooount of inadequate
monitoring of 30s by afewpartner N00s.
1he oompany's gross interest spreads were inadequate to oover the high
operating expenses of more than 25 per oent (annualised basis) during
the first six months of 2008-09, resulting in the Mll registering an
operating loss.
0iven the high operating expense levels and provisioning oosts, CRl3lL
expeots 1l3PL's profitability to remain under pressure in the medium
term.
1l3PL's gearing levels at 7.44 times as on 3eptember 30, 2008 are
moderate
Janalakshml Flnanclal 5ervlces Pvt. Ltd.
Branohes No. 6 3 1
Members No. 52,875 49,276 25,746
Borrowers No. 41,396 32,545 5,652
Loan 0/3 Rs. Mn 280 356 155
JF5PL J55
2008 2008 2001
ear ef cemmencement
Chlef xecutlve: Mr. Ramesh
Ramanathan, Chairman
Audlter: Ueloitte askins &
3ells, Bangalore
Centact betalls:
No. 302, 7th Cross, Uomlur Layout,
1el: +91-80-52595700, lax: +91-80-41525770
Lmail: |nfojana|akshm|.oom
web: www.jana|akshm||no|a.org
Net profit Rs. Mn -12.07 -5.04 -0.76
Net worth Rs. Mn 38.15 -5.80 -0.76
Returnonnet worth NM NM NM
Returnonassets NM NM NM
PAR>90days 4.20 5.66 4.23
Uebt/Net worth 1imes 7.44 -57.48 -214.44
lar|os are annua||seo, NM. Nor mean|ngfu|
JF5PL J55
Grewth 1rend
R
s
.

M
n
0
150
200
50
100
Mar-08
9,500
11,000
12,500
14,000
15,500
17,000
3ep-08 Mar-07
Abeut theMFl
1anodaya, a Karnataka-based N00, has been involved in integrated
development and livelihood support servioes for women and ohildren sinoe
1988. ln 2003, the N00-Mll also began finanoial intermediation to help its
members undertake inoome generating aotivities, with assistanoe from 1he
Bridge loundation.
1he N00-Mll follows a self help group (30) model, eaoh group oonsists of
12 to 20 members. 1anodaya offers one-year loans at an interest rate of 14
per oent on a flat basis. As on 3eptember 30, 2008, 1anodaya operated
aoross five distriots in Karnataka. 1he founders of 1anodaya have, during
2008-09 (refers to finanoial year, April 1 to Maroh 31), inoorporated a
oompany, into whioh they intend to transfer the miorofinanoe operations,
after it is registered with the Reserve Bank of lndia as a non-banking
finanoial oompany.
1anodaya has reoorded a oompound annual growth rate (CA0R) of 119
per oent in borrower base, 122 per oent in disbursements and 119 per
oent in total loans outstanding during the period between 2005-06 and
2007-08.
Uuring 2008-09, the loan portfolio of the N00-Mll has registered a de-
growth in spite of expansion in its branoh network. 1his is beoause the
N00-Mll didnot mobilise requiredresouroes tosupport its growth plans.
1anodaya has good asset quality, refleoted in 99.2 per oent of the
portfoliobeing ourrent (oolleotions ontime) as on3eptember 30, 2008.
1he Mll hadarelatively high gearing of 12.61times as on3eptember 30,
2008, though this has improved from 26.58 times as on Maroh 31,
2007. 1o fund its growing assets, 1anodaya will need to raise oapital: its
ourrent legal struoture as a trust impedes its ability to raise external
oapital. 1he N00-Mll intends to transfer its miorofinanoe programme to
the newly-aoquiredoompany: the proposedstatus of anNBlC will enable
the miorofinanoe programme toraise equity.
CRl3lL expeots 1anodaya's oost of borrowing and operating expenses to
maintain their Maroh 2008 levels over the medium term. Cost of
borrowing and operating expenses are low for the six month period
ending 3eptember 30, 2008, beoause of the impaot of rapid expansion
in operations and portfolio size - the impaot of the oonourrent oosts of
this expansionwill be visible only over aperiodof time.
Janedaya 1rust
Members No. 38,530 35,860 23,400
Borrowers No. 16,193 14,982 10,400
Uisbursement Rs. Mn 89 190 115
Loan 0/3 Rs. Mn 127 130 80
2008 2001
Net worth Rs. Mn 11.45 7.19 3.23
PAR>90days 0.00 0.00 -
ear ef cemmencement
Legal status: 1rust
Lendlng medel: 30
Chlef xecutlve: Ms. 3antosh vas,
Chairperson
Audlter: vittal Rao Kaliswaran
& Co., Bangalore
Centact betalls:
# 3, 9th Cross, 5th Main, 1ayamahal Lxtension,
1el: +91-80-23332564
lax: +91-80-23430155
Lmail: janooa,abg|.vsn|.ner.|n
lndia 1op 50 Miorofinanoe lnstitutions J
Grewth 1rend
0
200
0
25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
400
600
800
1,000
1,200
1,400
R
s
.

M
n
Net profit Rs. Mn 35.49 23.34 33.85
Net worth Rs. Mn 320.69 100.69 55.59
PAR>90days 0.14 0.06 -
Abeut theMFl
Madura Mioro linanoe Ltd. (MMlL) was inoorporated in lebruary 2006 as a
non-banking finanoial oompany (NBlC). 1he Mll's primary produot is loans
to women's self help groups (30s) for small business support. Laoh group
oonsists of 15 to 20 women, from the same village but from different
families. 1he formation and training of these groups are managed through
MMlL's partner organisation, Miorooredit loundation of lndia, a non-profit
oompany.
1he oompany offers five types of loan produots with loan amounts ranging
from Rs.1,000 to Rs.50,000, at an interest rate of 18 to 21 per oent per
annum (on reduoing balanoe basis), with tenure ranging from 6 weeks to
72weeks.
MMlL's membership base and loans outstanding registered a moderate
annual growth rate of 56per oent and 27per oent, respeotively, between
April 1, 2006, and3eptember 30, 2008.
MMlL has good asset quality, refleoted in 99.57 per oent of the portfolio
being ourrent (oolleotions on time) as on 3eptember 30, 2008. 1he
oompany has a strong loan monitoring and reoovery system: the 30s
are graded regularly, and the loan approval prooess is oomprehensive,
andmarkedby the involvement of the fieldstaff.
1he Mll's funding mix is average: as on Maroh 31, 2008, around 71 per
oent of its total borrowings were from twolenders. Beoause of its relianoe
on two lenders, its ability to raise funds is limited when oompared to
other Mlls with more diverse funding profiles.
MMlL's ourrent profitability is strong with operational self-suffioienoy
ratioat over 150per oent for the six months ended3eptember 30, 2008.
Profitability is signifioantly supported by low operating expenses:
operating expenses mainly oonsist of a small fee paid to its partner
organisation, the Mioro Credit loundation of lndia, for formation and
monitoring of 30s.
lollowing an equity infusion during first half of 2008-09, the oompany's
debt to net worth ratio improved signifioantly to 2.26 times as on
3eptember 30, 2008 from 7.37 times as on Maroh 31, 2008. CRl3lL
expeots MMlL's oapitalisationtoremainadequate inthe medium term.
Madura Mlcre Flnance Ltd.
ear ef cemmencement
Lendlng medel: 30
Chlef xecutlve: Mr. M Narayanan,
Audlter: 3 N 3 Assooiates,
Chennai
Centact betalls:
No. 36, 3eoond Main Road, Kasturba Nagar, Adayar,
Chennai - 600020, 1amil Nadu
1el : +91-44-42116842, lax: +91-44-24413841
Lmail: m.nara,ananmmf|.|n
web: www.maouram|orof|nanoe.oom

Members No. 380,000 350,000 225,970
Borrowers No. 188,000 180,000 136,445
Uisbursements Rs. Mn 594 994 1,357
Loan 0/3 Rs. Mn 1,223 1,166 1,035
2008 2001
J lndia 1op 50 Miorofinanoe lnstitutions
Abeut theMFl
Pragathi Mutually Aided Cooperative Credit and Marketing lederation Ltd
(PMAC3) took over the miorofinanoe operations of Pragathi 3eva 3amithi
(P33) in 2004. PMAC3 has more than 20 mutually-aided oooperative
sooieties (MAC3s) under its fold and operates in the warangal and
Khammam distriots of AndhraPradesh.
PMAC3 follows the federation approaoh, it lends to its MAC3s at an interest
rate of 12 per oent to 15 per oent per annum on reduoing balanoe basis for
11 months to 30 months. 1he MAC3s, in turn, extend loans to their 30s at
an interest rate of 18 per oent on reduoing balanoe basis. ln addition,
PMAC3alsooharges aprooessing fee of 2per oent of the loanamount.
PMAC3's disbursements have deolined in 2007-08 (refers to finanoial
year, April 1 to Maroh 31) as the Mll is unable to raise adequate
borrowings.
PMAC3has goodasset quality, refleotedin98.50per oent of the portfolio
being ourrent (oolleotions on time) as on 3eptember 30, 2008. 1his is on
aooount of a strong loan sanotion prooess and regular monitoring of
MAC3s by the federation.
1he Mll had an average funding profile: as on Maroh 31, 2008, around
46per oent of its total borrowings were from UlC Bank, and31per oent
from private banks. Beoause of its relianoe on a limited set of lenders, its
ability to raise funds is limited when oompared to other Mlls with more
diverse funding profiles.
PMAC3's operational self-suffioienoy (033) has improvedduring past two
years, and was 112.60per oent for the six months ended 3eptember 30,
2008. CRl3lL believes that the 033 ratio will remain over 100 per oent,
beoause of lowoost savings aooessed from member MAC3s, and
operations that are oross-subsidisedby sooial aotivities.
1he Mll is a oooperative and during 2007-08 oonverted part of the
deposits reoeivedfrom the MAC3s into oapital, resulting inaninorease in
net worth to Rs.23.57 million as on Maroh 31, 2008 from Rs. 1.69
millionas onMaroh 31, 2007.
Pragathl Mutually Alded Ceeeratlve
Credlt and Marketlng Federatlen
Net worth Rs. Mn 25.45 23.57 1.69
PAR>90days 0.30 0.26 0.10
ear ef cemmencement
Lendlng medel: 30
Chlef xecutlve: Mr. 0addala 1ohn,
Audlter: Narotham Madhav
&Ramesh, warangal
Centact betalls:
# 2-5-898, Cirouit ouse Road, anamkonda,
warangal-506001, Andhra Pradesh
1el: +91-870-2540851, lax: +91-870-2540979
Lmail: pragarh|mf|,ahoo.oom
web. www.|nfopragarh|sevasam|rh|.org
Members No. 43,560 42,216 38,812
Borrowers No. 22,861 23,735 22,121
Loan 0/3 Rs. Mn 188 208 174
2008 2001
0
50
100
150
200
250
Mar-08
Grewth 1rend
R
s
.

M
n
20,000
21,000
22,000
23,000
24,000
25,000
Mar-07 3ep-08
Abeut theMFl
lnoorporatedin1981, the 1irupati-basedRashtriya3eva3amithi (RA33) has
implemented various developmental programmes, with funding support
from the 0overnment of lndia and international donor agenoies, in Andhra
Pradesh and neighbouring states. 1he N00-Mll started its miorofinanoe
programme in1989.
RA33 follows the self-help group (30) lending model and offers 20-month
loans with amounts ranging between Rs.10,000 and Rs.30,000 at an
interest rate of 17 per oent per annum on reduoing balanoe basis. ln
addition, it oharges upfront fee (1per oent of the loan amount) and Rs.20as
loanprooessing fee.
RA33 has reported a oompounded annual growth rate (C0AR) of around
69 per oent in its number of borrowers, 140 per oent in disbursements,
and 140 per oent in loan outstanding, during the period between 2005-
06 (refers to finanoial year, April 1 to Maroh 31) and 2007-08. Uespite
low growth in the number of inoremental members, repeat loans to
existing borrowers have been the driving faotor for higher growth in
disbursements.
RA33's overall asset quality is good: as of 3eptember 30, 2008, 92.55
per oent of the portfolio was ourrent (oolleotions on time), this was an
improvement from 86.78 per oent as of Maroh 31, 2007. 1his is due to
improvement inoontrols andsystems post 2006-07.
As RA33 operates several developmental projeots along with its
miorofinanoe program, its operational oosts are subsidised. As a result
of the lowoperating expense levels, the N00-Mll is able to register more
than 100 per oent operational self-suffioienoy (033) ratio despite its
lending rates being far lower than those of other large Mlls operating in
the region. 0iven the long traok reoord of the N00, CRl3lL expeots
RA33's miorofinanoe programme to benefit from the subsidisation of
operating oosts inthe medium term.
1he N00-Mll has oonsistently maintained gearing at adequate levels,
between 7 times to 8 times during the past few years, through regular
infusion of oapital grants to support its miorofinanoe programme. CRl3lL
expeots RA33 to maintain gearing at ourrent levels over the medium
term.
Rashtrlya 5eva 5amlthl
Net worth Rs. Mn 55.69 42.64 26.65
PAR>90days 0.12 0.13 0.54
ear ef cemmencement
Lendlng medel: 30
Chlef xecutlve: Mr. 0 Muniratnam,
0eneral 3eoretary
Audlter: 0. Kannaiah Naidu
& Assooiates, 1irupati
Centact betalls:
RA33 3eva Nilayam, AlR By Pass Road, Annamaiah
Marg, 1irupati - 517502, Chittoor, Andhra Pradesh
1el: + 91-877-2242404, lax:+91-877-2244281
Lmail: rassorggma||.oom, rass_orgreo|ffma||.oom
web: www.rass.|no|a.org
Branohes No. 5 5 6
Members No 50,845 50,062 45,682
Borrowers No 41,453 38,675 23,410
Loan 0/3 Rs. Mn 433 339 144
2008 2001
0
Mar-08
Grewth 1rend
20,000
Mar-07 3ep-08
150
200
250
300
350
400
450
26,000
30,000
34,000
38,000
42,000
R
s
.

M
n
Abeut theMFl
1he 0uwahati-headquartered Rashtriya 0ramin vikas Nidhi (R0vN) is a
leading N00-Mll operating in the north-eastern and eastern states of lndia.
lndustrial linanoe Corporation of lndia (llCl), lUBl Bank, National Bank for
Agrioulture and Rural Uevelopment (NABARU), and 1ata 3ooial welfare
1rust, are the sponsors of R0vN. 1he sooiety has two divisions for
miorofinanoe - oredit and savings programme (C3P) and N00-3P. C3P is
fooused on retail lending to groups and individual borrowers, while N00-3P
provides loans, returnable grants, and non-returnable grants to N00s. 1he
C3Pprogramme, startedin1995, operates in12distriots of Assam.
under C3P, R0vN lends to self-help groups, joint liability groups, and
individuals. 1he Mll offers loans for tenures ranging from 3 months to 24
months, at interest rates ranging from 7 per oent to 10 per oent on flat rate
basis. R0vN-C3P also oolleots 5 per oent of the loan amount as upfront
seourity deposit and Rs.5 per loan as pass book fee. lt also provides life
insuranoe oover toits borrowers through tie-ups with insuranoe oompanies.
As on 3eptember 30, 2008, 95.83 per oent of the R0vN-C3P's portfolio
was ourrent (oolleotions on time), a signifioant improvement from 89.49
per oent as of Maroh 31, 2007. 1his improvement is beoause of the
strengthening of the loan monitoring and review meohanisms by C3P's
management.
with R0vN-C3P inoreasingly aooessing borrowings from oommeroial
banks, the average oost of borrowings has steadily inoreased over the
past fewyears.
R0vN-C3P's gearing remains high, though it has improvedto12.77times
as of 3eptember 30, 2008, from 62.77 times as of Maroh 31, 2007 with
the infusion of oapital grants by R0vN. 1he N00-Mll's management
intends to promote an NBlC over the medium term, whioh would take
over the C3P programme, this would enable the miorofinanoe
programme toraise oapital andaohieve soale.
R0vN C3P's operational self-suffioienoy (033) ratio has improved during
the past two years, and was 130.74 per oent for the six months ended
per oent, but 033 growth from ourrent levels is likely to be ourtailed
beoause of the inoreasing oost of borrowings and operating expenses
levels (onaooount of expansion).
Rashtrlya Gramln vlkas Nldhl - C5P
ear ef cemmencement
Chlef xecutlve: Ms. Rupali Kalita,
Uireotor
Audlter: Uas & 3harma,
0uwahati
Centact betalls:
Padma Path, ouse No-2, Bye Lane-8, Loo 1iniali,
R.0. Baruah Road, 0uwahati - 781024, Assam
1el: +91-361-2464612
Lmail: rupa||_rgvn,ahoo.oom,rgvn_ospreo|ffma||.oom
web: www.rgvn|no|a.org
Net worth Rs. Mn 19.95 12.49 3.32
Returnonnet worth 90.47 113.38 NM
PAR>90days 2.78 6.30 7.04
Unlt 5et-08* Mar-08 Mar-01 Key Flnanclal Rlghllghts
Members No. 79,087 62,849 44,279
Borrowers No. 57,429 44,722 24,147
Loan 0/3 Rs. Mn 303 256 56
2008 2001
Grewth 1rend
0 20,000
R
s
.

M
n
100
200
300
400
30,000
40,000
50,000
60,000
lndia 1op 50 Miorofinanoe lnstitutions J9
Abeut theMFl
1he R0RL3 Mioro Lntrepreneur Uevelopment 1rust (RMLU1) is a non-
govermental miorofinanoe institution (Mll) registered as a oharitable trust.
1he trust started operations in 2005 by taking over the miorofinanoe
portfolio of the Re-organisation of Rural Loonomy and 3ooiety (R0RL3), a
non-governmental organisation(N00) engagedinsooial development work.
RMLU1 follows the joint-liability group (1L0) model of lending. lt offers 46-
week loans at an interest rate of 15 per oent on a flat basis. ln addition, the
trust also oolleots one-time membership fee and prooessing oharges of
Rs.100eaoh at the time of disbursement.
RMLU1's witnessed robust growth, whioh is evidenoed in a oompound
annual growth rate (CA0R) of 184per oent in the borrower base, 289per
oent indisbursements, and271per oent intotal loanoutstanding, during
the period between 2005-06 (refers to finanoial year, April 1 to Maroh
31) and2007-08.
Uuring the six months ended3eptember 302008, the trust expandedits
operations through deeper penetrationin existing operational areas: the
resultant eoonomies of soale have helped reduoe the operating expense
ratioto5.60per oent during the period.
RMLU1 has good asset quality with 99 per oent of the portfolio being
RMLU1's average oost of borrowings for the first half of 2008-09
improved from 2007-08 levels as the trust mobilised most of its
resouroes towards the end of the six-month period, about 80 per oent of
the fresh disbursements were made from fieldoolleotions.
1he trust has been reporting a strong operational self-suffioienoy (033)
ratio for the past three years on aooount of a large interest spread and a
oomfortable operating expense level. CRl3lL, however, expeots the 033
ratio to oome under pressure if the trust is unable to inorease
disbursements andthereby inorease interest inoome.
RMLU1's gearing deoreased to 7.6 times as on 3eptember 30, 2008
from its earlier highs of over 15 times as internal aooretions from
operations shoredup the trust's net worth.
R0R5 Mlcre ntrereneur bevelement 1rust
Net worth Rs. Mn 23.83 7.99 3.16
PAR>90days 0.17 0.29 0.49
Members No. 34,861 27,972 12,979
Borrowers No. 34,299 27,819 12,353
Loan 0/3 Rs. Mn 204 156 51
2008 2001
0
Mar-08
Grewth 1rend
0
Mar-07 3ep-08
100
200
300
5,000
10,000
15,000
20,000
25,000
30,000
35,000
ear ef cemmencement
Legal status: 1rust
Lendlng medel: 1L0
Chlef xecutlve: Mr. P 3athyanarayana
Reddy,
Audlter: vittal Rao Kaliswaran
& Co., Bangalore
Centact betalls:
#65, Ramakrishna Lxtension,
3rinivaspura - 563135, Kolar Uistriot, Karnataka
1el: +91-8157-246278
lax: +91-8157-246181
Lmail:roresreo|ffma||.oom, rores_ps,ahoo.oo.|n
Abeut theMFl
lnoorporated in 2001, Andhra Pradesh-based 3aadhana Miorofin 3ooiety
(3aadhana) disburses mioro loans with tenures of up to 50 weeks, at an
interest rate of 15 per oent per annum on a flat basis, to women's joint
liability groups (1L0s) in urban and semi-urban areas. At present, the
miorofinanoe institution(Mll) is present inonly five distriots of the state.
1he Mll's lending model is similar to that adopted by the 0rameen Bank.
3aadhana also offers group life insuranoe sohemes to its borrowers through
tie-ups with an insuranoe oompany. 1he Mll also lends to other N00s and
smaller Mlls, but these loans form a small proportion of the overall
advanoes. As on 3eptember 30, 2008, the Mll had more than 73,000
borrowers andaloanoutstanding of Rs.486million.
ln 2007, few of 3aadhana's board members and senior management
aoquired a dormant, non-banking finanoial oompany (NBlC) as part of a
plan to expand operations. 1he Mll operations will be transferred to this
NBlC by the endof 2009.
3aadhana has a good asset quality, whioh is refleoted in 100 per oent of
its portfolio being ourrent (oolleotions on time) as on 3eptember 30,
2008. 1he Mll has strong loan-monitoring systems in plaoe and the
head offioe keeps a tight oontrol on the branohes by monitoring the
demandtrendandoolleotions onadaily basis.
1he addition of 15 new branohes during the first half of 2008-09 has
resulted in inorease in operating expense levels and, as a result, the
operational self suffioienoy (033) ratio deolined to 118.14 per oent from
124per oent during 2007-08. owever, given the Mll's high branoh and
employee produotivity levels in the past, CRl3lL believes that the
operating expense levels would deoline resulting in improvement in the
033over the medium term.
3aadhana's oapitalisation levels are moderate with a net worth of Rs.59
million and a relatively high debt-to-net worth of 8.64 times as on
3eptember 30, 2008. ln order to funds its growing asset size, 3aadhana
will need to raise oapital: the Mll's ourrent legal struoture as a sooiety
impedes its oapital-raising ability. enoe, 3aadhana intends to transfer
its miorofinanoe programme to the newly-aoquired NBlC by the end of
2009: the legal struoture of anNBlC will enable the Mll toraise equity.
5aadhana Mlcrefln 5eclety
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. M. Lrnest Paul,
3eoretary &
Audlter: K. v. Krishnaiah & Co,
Kurnool
Centact betalls:
#50-760A-116, 2nd lloor, 0ayatri Lstates,
Kurnool - 518 002, Andhra Pradesh
1el: +91-8518-233582, lax: +91-8518 - 236302
Lmail: saaohanamfsreo|ffma||.oom
web: www.saaohana.org
Net worth Rs. Mn 58.97 50.01 30.37
PAR>90days - - -
Members No. 90,570 76,580 60,440
Borrowers No. 73,443 62,729 54,250
Loan 0/3 Rs. Mn 486 360 301
2008 2001
Grewth 1rend
0 0
15,000
R
s
.

M
n
200
400
600
800
1,000
30,000
45,000
60,000
75,000
Grewth 1rend
R
s
.

M
n
0
150
300
450
600
750
50,000
65,000
80,000
95,000
Net worth Rs. Mn 67.76 39.21 2.77
PAR>90days 1.94 1.44 0.41
Abeut theMFl
3ahara utsarga welfare 3ooiety (3uw3) began its miorofinanoe operations
in 1999. 3uw3 follows the self-help-group (30) model of lending. 1he Mll
offers 46-week loans at an interest rate of 15 per oent on a flat basis. 1he
Mll oolleots 10per oent of the loanamount as seourity deposit at the time of
loan disbursal. As on 3eptember 30, 2008, the Mll had more than 90,000
borrowers and outstanding loans of Rs.377 million. As on the above date,
the Mll had62branohes aoross six distriots of west Bengal.
1he founders of 3uw3 have also have aoquired a non-banking finanoial
oompany (NBlC) to foous on the miorofinanoe operations. 1he NBlC is
ourrently present in only one distriot of west Bengal, and had a loan portfolio
of Rs.8.55millionas of 3eptember 30, 2008.
3uw3's asset quality deteriorated with 97.03 per oent of the portfolio
being ourrent (oolleotions on time) as on 3eptember 30, 2008 from
99.59 per oent as on Maroh 31, 2007. 1his deoline in asset quality is
mainly beoause of defaults in the individual loan portfolio and non
settlement of olaims by the insuranoe oompany due to the death of the
borrower/spouse.
1he gearing levels have improved oonsistently to 4.23 times as on
3eptember 30, 2008 from 114.33 times as on Maroh 31, 2007 due to
improvement in internal aooruals. ln addition, the Mll was able to
mobilise limited resouroes from lending institutions, thereby improving
gearing levels. CRl3lL expeots the gearing level to inorease over the
medium term giventhe Mll's expansionplans.
1he Mll's 033 inoreased during the first six months of 2008-09.
owever, CRl3lL expeots the Mll's oost of borrowing and operating
expense levels to inorease and therefore the 033 is expeoted to oome
downtoMaroh 2008levels over the medium term.
5ahara Utsarga Welfare 5eclety
ear ef cemmencement
Lendlng medel: 30
Chlef xecutlve: Mr. 3udipta Banerjee,
3eoretary
Kolkata
Centact betalls:
Kalibari 3arani, Miohael Nagar,
Kolkata - 700133,
west Bengal
1elefax: +91-33-25674205
Lmail: sahara_mf|no|ar|mes.oom
Members No. 103,522 94,865 62,846
Borrowers No. 90,396 84,281 58,097
Loan 0/3 Rs. Mn 377 339 211
2008 2001
Abeut theMFl
lnoorporated in 2001, west Bengal-based 3ahara uttarayan disburses
loans with tenures of up to 12 months, at an interest rate of 12.5-150 per
oent on a flat basis, to women's joint-liability groups (1L0). ln addition, the
miorofinanoe institution (Mll) oolleots 10 per oent of the loan amount as
seourity deposit. 1he Mll also offers a death relief soheme to borrowers:
under this soheme, the loan outstanding of the deoeased borrower is
adjusted with a dedioated fund oreated by the sooiety and the seourity
money is returnedtothe nominee of the deoeased.
At present, the Mll is present in six distriots of west Bengal. 1he Mll's
lending model is similar to that adopted by the A3A (formerly known as the
Assooiationfor 3ooial Advanoement), aleading Mll inBangladesh.
3ahara uttarayan's robust growth is evidenoed in a oompound annual
growth rate (CA0R) of 210 per oent in its member base, 219 per oent in
its disbursements, and 244 per oent in its loans outstanding, between
2005-06(refers tofinanoial year, April 1toMaroh 31) and2007-08.
1he Mll's gearing level has improved signifioantly to 8.22 times as on
3eptember 30, 2008from 51.68times as onMaroh 31, 2007as internal
aooretions inoreased net worth. CRl3lL believes that 3ahara uttarayan
will needtoraise oapital inorder tosupport any meaningful expansion.
1he Mll's operating self suffioienoy (033) ratio has been quite high over
the past two years: it was 140.23 per oent for the six months ended
per oent as the Mll's gross interest spreads would be more than
adequate tooover the operating expenses.
3ahara uttarayan's operating expense levels though inoreasing, are
expeoted to remain below9per oent unless the Mll oontinues to register
aggressive growth through newbranoh expansion.
1he funding mix of the Mll is average, as it aooessed most of the
borrowings from 3tate Bank of lndia and lriends of women's world
Banking (lwwB). Uue to its relianoe on the two lenders, its finanoial
flexibility (ability toraise funds) is limitedwhenoomparedwith other Mlls
with more diverse funding profiles.
1he Mll has goodasset quality, whioh is refleotedin98.22per oent of the
portfoliobeing ourrent (oolleotions ontime) as on3eptember 30, 2008
5ahara Uttarayan
Net 3urplus Rs. Mn 8.07 11.87 2.01
Net worth Rs. Mn 21.97 13.90 2.03
PAR>90days 1.27 0.96 0.63
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. Prakash Banerjee,
Audlter: Arup & Assooiates,
Kolkata
Centact betalls:
3ahara Banerjee Para (1st 3arani),
P0-Miohael Nagar, Kolkata - 700133
1el: +91-033-25675745, lax: +91-033-25675745
Lmail: sahara.urrara,an,ahoo.oom
web: www.sumf|no|a.oom
Members No. 57,695 48,098 24,979
Borrowers No. 51,261 41,762 22,860
Loan 0/3 Rs. Mn 205 137 76
2008 2001
0
Mar-08
Grewth 1rend
20,000
Mar-07 3ep-08
25,000
30,000
35,000
40,000
45,000
50,000
55,000
50
100
150
200
250
300
R
s
.

M
n
Abeut theMFl
3anghamithra Rural linanoial 3ervioes (3Rl3) was promoted by MRAUA
(formerly Mysore Resettlement and Uevelopment Agenoy), a leading
developmental agenoy managing rural development programmes in
3outh lndia.
3Rl3 lends to self-help groups (30) promoted by MRAUA, and other
partner N00s. lt offers 33-month loans to 30s at interest rate of 16 per
oent per annum on a reduoing balanoe basis. As on 3eptember 30, 2008,
3Rl3 had presenoe in three states, viz. Karnataka, 1amil Nadu and Andhra
Pradesh. 1he pioneering work of developing the 30 movement in lndia by
MRAUA has helped 3Rl3 to oreate an operational infrastruoture and
adequate prooess oontrols tosoale up its miorofinanoe operations.
3Rl3 has grown moderately, whioh is evidenoed in the miorofinanoe
institution's (Mll) oompoundedannual growth rate (CA0R) of 24per oent
inthe member base, 56per oent indisbursement and45per oent inloan
outstanding during the periodbetween2005-06and2007-08.
Asset quality indioators improved marginally during the first six months
of 2008-09. As a result, the portfolio-at-risk greater than 90 days (PAR>
90 days) improved to 4.75 per oent as on 3eptember 30, 2008 from 5.2
per oent as onMaroh 31, 2008.
1he Mll's operational self suffioienoy (033) ratio has been low at
marginally above 100 per oent. 0iven its lower lending rates, the Mll's
gross interest spreads are highly susoeptible to borrowing oost. Although
the Mll has managed to borrow at attraotive lending rates in the past,
lending rates for the seotor inoreased during 2008-09. 1hus, CRl3lL
expeots the 033 ratio to remain marginally above 100 per oent over the
medium term..
5anghamlthra Rural Flnanclal 5ervlces
ear ef cemmencement
Legal status: 3eotion 25 Company
Lendlng medel: 30
Chlef xecutlve: Mr. R. U. 0adiyappanavar,
Audlter: ariharan & Co.,
Mysore
Centact betalls:
U No: 612, 1st 'C' main Road, Uomlur Layout,
1el: +91-80-25350301, lax: +91-80-25354708
Lmail: sanm|rhrasanoharner.|n, |nfosangham|rhra.org
web: www.sangham|rhra.org
Net worth Rs. Mn 66.59 60.83 58.56
PAR>90days 4.75 5.20 3.80
Members No. 132,944 130,048 107,119
Borrowers No. 23,204 21,262 15,778
Loan 0/3 Rs. Mn 538 487 331
2008 2001
Grewth 1rend
0 0
5,000
R
s
.

M
n
100
200
300
400
600
10,000
15,000
20,000
25,000
500
Grewth 1rend
500
1,000
2,000
1,500
80,000
100,000
120,000
140,000
160,000
180,000
200,000
R
s
.

M
n
5arvedaya Nane Flnance Ltd.
ear ef cemmencement
Lendlng medel: 30
Chlef xecutlve: Mr. R. 3owmithri,
Managing Uireotor
0urgoan
Centact betalls:
279, Avvai 3hanmugam 3alai, Royapettah,
1el: +91-44 - 2813 1880 / 6529 2218
1elefax: +91-44 - 2813 1880 Lxtn. 119
Lmail: |nfosarvooa,anano.org
Net worth Rs. Mn 173.74 156.18 137.08
PAR>90days 1.39 0.46 0.52
lar|os are annua||seo, rhe asser qua||r, |mproveo posr Seprember 2003
Abeut theMFl
3arvodaya Nano linanoe Ltd. (3NlL) was part of the BA3lX group before the
ownership was transferred to several oommunity-owned organisations,
whioh were registered as mutual benefit trusts (MB1s). owever, the senior
management and direotors of the BA3lX group oontinue to serve on the
board of 3NlL, and BA3lX oontinues to provide management assistanoe to
3NlL. 3NlL's main operations are in 1amil Nadu and it has also inoreased
the soale of operations in Rajasthan, Bihar, Madhya Pradesh and
1harkhand.
1he miorofinanoe institution (Mll) is now owned by more than 100 MB1s,
eaoh of whioh is a federation of women self-help groups (30s) that were
nurtured by the Assooiation for 3arva 3eva larms (A33LlA), a leading non-
governmental organisation (N00). 3NlL raises loans to meet the oredit
needs of the MB1s, whioh, in turn, lend to 30s. 3NlL's board as well as the
management oomprises professionals with experienoe in miorofinanoe and
promotion of oommunity-owned organisations. 3NlL offers loans to the
MB1s at 12 per oent per annum and the MB1s, in turn, lend these funds to
their affiliated30s at 24per oent per annum.
3NlL has reoorded - a oompound annual growth rate (CA0R) of 57 per
oent in disbursements, and 52 per oent growth in total loan outstanding
during the period between 2005-06 (refers to finanoial year, April 1 to
Maroh 31) and2007-08.
As on 3eptember 30, 2008, 80.75 per oent of 3NlL's loan portfolio was
ourrent (oolleotions on time), indioating the deoline in the Mll's asset
quality during 2008-09. lts asset quality oame under pressure as
another Mll promoted by A33LlA began lending to the households of
3NlL's borrowers. Aooording to the oompany, however, the issue has
beenresolvedandthe on-time oolleotions by Maroh 2009are higher and
largely inline with the Maroh 2008levels.
1he oompany operates on thin spreads and, therefore, its profitability is
highly susoeptible to any inorease in the oost of borrowings. As a result,
the operational self-suffioienoy (033) ratiodeolinedto100.48during the
first six months of 2008-09. 0iven 3NlL's limited prioing flexibility,
CRl3lL expeots the Mll's 033ratiotoremainmodest going forward.
As a olosely held oompany, 3NlL has been suooessful in raising equity
oapital from newMB1s wanting to borrowfrom 3NlL. As a result, the Mll
has maintained adequate oapitalisation levels. owever, CRl3lL expeots
3NlL's oapitalisationtooome under pressure due tothinprofit margins.
Lmployees No. 1220 1206 1042
Members No. 544,185 525,470 401,502
Borrowers No. 84,919 171,852 126,211
Uisbursements Rs. Mn 965 1,724 1,160
Loan 0/3 Rs. Mn 949 886 643
2008 2001
50
100
150
200
250
Mar-08
Grewth 1rend
R
s
.

M
n
Mar-07 3ep-08
500
600
700
800
900
1000
5ewa Mutually Alded Ceeeratlve
1hrlft 5ecletles Federatlen Ltd.
Abeut theMFl
3ewa Mutually Aided Cooperative 1hrift 3ooieties lederation Ltd. (3ewa), an
early promoter of the mutually-aided oooperative thrift sooieties (MAC13) in
Andhra Pradesh, follows the federation model. Laoh of the MAC13s under
3ewa's fold is a shareholder in the federation. 1he miorofinanoe institution
(Mll) offers loans to its MAC13s at an interest rate of 13per oent per annum
on a reduoing balanoe basis for 13 to 30 months. 1he MAC13s, in turn,
extend loans to individuals and 30s at an interest rate of 18 per oent. ln
addition, eaoh MAC13 is required to maintain 20 to 33 per oent of the loan
disbursedas seourity deposit with 3ewa.
Uuring the period between 2005-06 (refers to finanoial year, April 1 to
Maroh 31) and 2007-08, 3LwA has reported a oompoundannual growth
rate (CA0R) of 80 per oent in its member base, 289 per oent in its
borrower base andby 276per oent inits loans outstanding.
3ewa's asset quality is moderate, whioh is refleoted in portfolio at risk
greater than 90 days (PAR>90 days) of 5 per oent as on 3eptember 30,
2008. 1his has shown an inoreasing trend sinoe 2007-08 due to rapid
addition of new MAC13s under its fold. Also, in 2006-07, the Mll
adjusted overdues with deposits that the oorresponding oooperative
maintainedwith 3ewa. 1his praotioe was stoppedin2007-08resulting in
inorease inPARlevels.
1he Mll had a moderate resouroe profile as on Maroh 31, 2008, about
38 per oent of its total borrowings were aooessed from a private bank,
and 30 per oent from apex Mlls, while the remainder was mobilised as
savings andseourity deposits from member MAC13s.
1he Mll's operational self-suffioienoy (033) ratio is low at marginally
above 100 per oent as on 3eptember 30, 2008. 1he 033 ratio has
deolined from Maroh 31, 2008 levels due deoline in disbursements,
whioh resulted in lower inoome without oorresponding reduotion in
operating expenditure. Uespite this slowdown, CRl3lL expeots 3ewa's
033 ratio to remain marginally above 100 per oent over the medium
term. 1his would be supported by various servioe oharges that 3ewa
oolleots from its 1500-plus MAC13s eaoh year, for business and
teohnioal support servioes.
3ewa has a healthy debt-to-net worth ratio of 1.97 times as on
3eptember 30, 2008. 1his is on aooount of slow down in disbursement
growth during the first six months of 2008-09 and regular infusion of
oapital by MAC13s. 1he Mll is a oooperative, and during 2007-08,
oonverted part of the deposits reoeived from its MAC13s into oapital,
resulting in an inorease in net worth to Rs.50.80 million as on Maroh 31,
2008from Rs.15.40millionas onMaroh 31, 2007.
Net worth Rs. Mn 52.10 50.80 15.40
PAR>90days 5.00 2.28 -
ear ef cemmencement
Legal status: Cooperative 3ooiety
Chlef xecutlve: Mr. A Prathap Reddy,
Audlter: Rama3ubbaiah&
Assooiates, yderabad
Centact betalls:
17-1-383/47, 3ewaBhavan, Plot no. 47, vinay Nagar oolony,
3aidabad, yderabad 500059, AndhraPradesh
1el: +91-40-24530211lax: +91-40-24530915
Lmail: sewaprarapreoo,gma||.oom
web: www.sewafeoh,o.org
Members No. 1,524 1,325 992
Borrowers No. 923 910 593
Loan 0/3 Rs. Mn 183 200 112
2008 2001
Abeut theMFl
3ARL Miorofin Ltd. (3ML) is lndia's third-largest miorofinanoe institution
(Mll), with a loan outstanding of Rs.8.57billion and 1.2million borrowers as
on 3eptember 30, 2008. 3ML was the first Mll in lndia to transform into an
NBlC from a non-profit legal outfit in 1999-00 and is oredited for
suooessfully replioating Bangladesh-based 0rameen Bank's group lending
model in lndia. 3ML started operations by taking over the branoh network of
the 3ooiety for elping Awakening Rural Poor through Lduoation (3ARL) in
1anuary 2000. As on 3eptember 30, 2008, 3ML has a presenoe in 142
distriots aoross 16 states. Uuring the past few years, the oompany's
ownership profile has ohanged from a oommunity-owned entity to an entity
with institutional ownership with the equity investment of u3U27 million by
Legatum ventures Ltd. and Aavishkaar 0oodwell lndia Miorofinanoe
Uevelopment Co. Limitedin2007.
1he oompany, whioh offers four types of loan produots, disburses its mioro
loans ranging betweenaperiodof 12months and24months, andoharges a
flat 12-14per oent interest rate.
Uuring 2007-08, 3ML's disbursements grew by 57 per oent to Rs.10.46
billionfrom Rs.6.64billionthe previous year.
3ML had an adequate debt-to-net worth ratio of 5.03 times (adjusted for
managed assets) as on 3eptember 30, 2008. CRl3lL expeots 3ML will
require equity infusion over the medium term to maintain adequate
oapitalization, as the oompany aggressively expands its asset base.
3ML's asset quality has improved gradually sinoe Maroh 31, 2007, when
PAR> 90 days reaohed a high of 9.67 per oent, steadily reduoing to 0.68
per oent as on 3eptember 30, 2008. 1hese delinquenoies were beoause
of lowoolleotions in2006, following the Krishnadistriot orisis.
1he oompany has well diversified wholesale to long-term funds from
various banks, finanoial institutions (lls) and apex Mlls. 3ML has
additionally beenoptimising its resouroe requirement through the direot-
assignment route.
1he operational self-suffioienoy (033) ratio has improved sharply to
155.45 per oent for the first six months of 2008-09. 1his is due to
inorease in lending rates during 2007-08. CRl3lL expeots 3ML to report
higher profitability over the medium term, as the inorease in lending
rates mitigates the impaot of inoreasing borrowing oosts and
operating expenses.
5RAR Mlcrefln Ltd.
Net profit Rs. Mn 246.39 62.43 48.71
Net worth Rs. Mn 1,448.19 1,194.57 372.85
PAR>90days 0.64 3.76 9.67
ear ef cemmencement
Lendlng medel: 1L0, lndividual
Chlef xecutlve: Mr. M. udaia Kumar,
Managing Uireotor
Audlter: 3. R. Batliboi & Co.,
yderabad
Centact betalls:
1-224/58, Rajeev Nagar, Naoharam,
yderabad - 500076, Andhra Pradesh
1el: +91-40-27158380, lax: +91-40-27173558
Lmail: uoa|asharem|orof|n.oom
web: www.sharem|orof|n.oom
Lmployees No. 4,169 3,022 2363
Members No 1,553,274 1,289,328 1,083,035
Borrowers No 1,231,556 989,641 826,517
Loan0/3 Rs. Mn 8,568 6,089 3,996
2008 2001
0
Mar-08
Grewth 1rend
800,000
Mar-07 3ep-08
2,000
4,000
6,000
8,000
10,000
12,000
880,000
960,000
1,040,000
1,120,000
1,200,000
1,280,000
1,360,000
R
s
.

M
n
Grewth 1rend
0
150,000
R
s
.

M
n
1,500
3,000
4,500
300,000
450,000
0
600,000
Net worth Rs. Mn 156.58 128.32 75.51
PAR>90days 0.15 0.15 0.02
Abeut theMFl
Lstablished in 1982 by Ur. U veerendra eggade, a trustee of the 3hri
Kshetra Uharmasthala, 3hri Kshetra Uharmasthala Rural Uevelopment
Projeot (3KURUP) is a oharitable trust. 3KURUP offers struotured produots
with a foous on livelihood support and asset oreation, loans are disbursed to
30s at an interest rate of 15 per oent per annum on a deolining method
basis. 1he loan tenure ranges between three and 10 years. Borrowers also
have topay 1per oent of the loanamount towards servioe oharges.
As on 3eptember 30, 2008, 3KURUP had 22 branohes, oovering 4,739
villages, 764,351 members (of whioh 612,482 were borrowers) from
76,662 30s. 1he miorofinanoe institution (Mll) has operations in six
distriots of Karnataka - udipi, Uakshina Kannada, 3himoga, Chiokmagalur,
Koorg, and uttara Kannada. 1he Mll, whioh is a non-governmental
organisation(N00), intends to oonsolidate its operations and plans to attain
1millionmembers by 2010.
Uuring the period between 2005-06 (refers to finanoial year,
April 1 to Maroh 31) and 2007-08, the number of 3KURUP borrowers
inoreased at a oompound annual growth rate (CA0R) of 39 per oent,
while its disbursements and loan outstanding inoreased at a CA0R of
78per oent.
3KURUP had a near 100-per oent traok reoord in timely oolleotions till
Maroh 2006. 1he asset quality, however, has been deolining sinoe then
with 99.68per oent of the portfolio being ourrent (oolleotions on time) as
on3eptember 30, 2008.
1he Mll's net worth oonsists largely of oapital grants from the temple
trust. owever, going forward, the grants are unlikely to matoh up to the
paoe of its plannedgrowth inasset size.
3KURUP has aooess to low-oost funds from several oommeroial banks.
1his supports the Mll's finanoial flexibility and is, therefore, not
dependent uponany one souroe toraise funds for growth.
Uuring 2007-08, the Mll attained sustainability in its miorofinanoe
operations with improvement in its portfolio yield. CRl3lL believes that
3KURUP will maintain operational sustainability in its miorofinanoe
operations despite the reoent inorease in interest rates by its lending
institutions, due tothe Mll's low-oost operational model.
5hrl Kshetra bharmasthala
Rural bevelement Preject
ear ef cemmencement
Legal status: 1rust
Lendlng medel: 30
Chlef xecutlve: Ur. L Manjunath,
Lxeoutive Uireotor
Audlter: Rao and Basri Co,
Mangalore
Centact betalls:
Uharmashree Building, Uharmasthala,
Uakshina Kannada Uistriot - 574216, Karnataka
1elefax: + 91-8256-277215
Lmail: skoropskororp|no|a.org
web: www.skorop|no|a.org
Lmployees No. 2,119 1,921 1,414
Members No. 764,351 674,331 463,765
Borrowers No. 612,482 574,968 443,532
Loan 0/3 Rs. Mn 4,060 3,436 2,278
2008 2001
Abeut theMFl
3K3 Miorofinanoe Ltd. (3K3MPL) is lndia's largest miorofinanoe institution
(Mll) with amember base of 3millionborrowers as on3eptember 30, 2008.
lt was inoorporated as a private limited oompany in 2003 for taking over the
miorofinanoe aotivities of 3wayam Krishi 3angam (3K3), a sooiety that was
registered in 1997 and began operations in 1998. After obtaining the non-
banking finanoial oompany (NBlC) lioenoe from the Reserve Bank of lndia in
1anuary 2006, 3K3MPL took over the operations of 3K3. 1he oompany's
miorofinanoe operations are spread over 15 states and one union territory
as on3eptember 30, 2008.
1he oompany follows the group-lending model, whioh olosely resembles
Bangladesh-based0rameenBank's model. while group loans have atenure
of 50 weeks, individual loans bear a term of 12 to 24 months. 3K3MPL
oharges an interest rate of 23.6 per oent on a deolining method basis in
AndhraPradesh andKarnatakaand28per oent inother states.
3K3MPL witnessed a robust oompounded annual growth (CA0R) of 205
per oent in its member base, 217 per oent in its disbursements and 237
per oent in its total loan outstanding between 2005-06 (refers to
finanoial year, April 1 to Maroh 31) and 2007-08. 1his growth in
disbursements and loans outstanding was primarily supported by
geographio expansion, regular oapital infusion and aooess to wholesale
resouroes from several lending institutions.
3K3MPL has a good asset quality with 99.14 per oent of the portfolio
being ourrent (oolleotions on time) as on 3eptember 30, 2008,
improving marginally from 98.96per oent as onMaroh 31, 2008.
1he oompany has demonstrated diversifioation in its resouroe profile.
3K3MPL has additionally been optimising its resouroe requirement
through the direot-assignment route. 1his supports the finanoial
flexibility of the oompany, whioh is not dependent uponany one souroe to
raise funds.
Regular oapital infusions by institutional investors andmoderate internal
aooretions have helped the oompany to keep its gearing level at 7.37
times as on 3eptember 30, 2008 despite rapid growth in its balanoe
sheet size.
CRl3lL expeots 3K3MPL's profitability to improve over the medium term
as inorease in fee-based inoome is expeoted to temper the impaot of
inoreasing borrowing oosts and operating oosts (as the Mll inoreases its
presenoe innewstates).
5K5 Mlcreflnance Ltd.
Net profit Rs. Mn 295.76 166.46 36.67
Net worth Rs. Mn 2394.95 2106.16 689.62
0perational self suffioienoy 126.49 119.06 110.34
PAR>90days 0.40 0.59 0.84
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. 3uresh 0urumani,
Audlter: 3. R. Batliboi & Co.,
yderabad
Centact betalls:
#2-3-578/1, Maruti Mansion, Kaohi Colony, Nallagutta,
Minister Road, 3eounderabad - 500003,
Andhra Pradesh
1el: +91-40-44526122, lax: +91-40-44526001
Lmail: |nfosks|no|a.oom, web: www.sks|no|a.oom
Branohes No. 1,413 771 275
Lmployees No. 12,397 6,817 2,389
Members No. 3,078,458 1,879,258 603,933
Borrowers No. 2,590,950 1,629,474 513,108
Loan 0/3 Rs. Mn 18,227 10,502 2,757
2008 2001
0
Mar-08
Grewth 1rend
500,000
Mar-07 3ep-08
900,000
1,300,000
1,700,000
2,100,000
2,500,000
2,900,000
3,300,000
5,000
10,000
20,000
15,000
R
s
.

M
n
Members No. 252,446 232,393 221,613
Borrowers No. 141,879 125,405 152,744
Loan 0/3 Rs. Mn 758 745 588
2008 2001
5.M.l.L. Mlcreflnance Ltd.
Abeut theMFl
3.M.l.L.L Miorofinanoe Ltd. (3MlLL) is a non banking finanoe oompany
(NBlC) inoorporated in 2004. 3MlLL follows 0rameen Bank lending model
(1L0). Mahasemam 1rust, 3MlLL's prinoipal business assooiate provides
servioes to 3MlLL miorofinanoe programme suoh as group identifioation,
formationandtraining andmanages 3MlLLportfolio.
3MlLL offers 12-24 month loans at an interest rate of 12 per oent on a flat
basis. 1he oompany also offers interest 1-2 month emergenoy loans and
oharges Rs. 100- 400 as upfront fee. As on 3eptember 30, 2008, the Mll
had an outstanding loan portfolio of Rs.757.7million and 141,879
borrowers, spreadaoross 13distriots of 1amil Nadu.
3MlLL has witnessed a oompounded annual growth of 98 per oent in its
disbursements, and 50.5per oent in its total loan outstanding during the
periodbetween2005-06and2007-08.
Uespite low operating expense levels, 3MlLL's operational self-
suffioienoy (033) ratio remains average at 106 per oent over the past
twoyears.
owever, the borrower to member ratio of the oompany was 56 per oent
as of 3eptember 30, 2008, is low as oompare to other similar size Mlls.
1his indioates that the Mll is faoing fund shortage and CRl3lL believes
that mobilising adequate funds is one of the oritioal faotors for 3MlLL.
1he Mll's debt to equity ratio oonsistently deolined to 11.86 times as of
3eptember 30, 2008 from 8.83 times as of Maroh 31, 2007, due to laok
of oapital infusion sinoe 2007.CRl3lL believes that, going forward, the
oompany has toinfuse fresh oapital for its future.
Net worth Rs. Mn 72.67 68.92 62.02
Portfolioyield 16.59# 16.76# 26.77#
PAR>90days 1.15 1.19 0.58
lar|os are annua||seo #leebaseo |noome a|so |no|uoeo
ear ef cemmencement
Lendlng medel: 0rameen model of
individual lending
Chlef xecutlve: Mr. M3athiyamoorthi,
Audlter: M/s. viotoria Mathews &
3anthakumar, Chennai
Centact betalls:
4/22, Ur. Natesan Road, Ashok Nagar,
1el: + 91-44- 23718588, 42318049
Lmail: sm||eoonf|oenr,ahoo.oo.|n
Mar-08
Grewth 1rend
R
s
.

M
n
Mar-07 3ep-08
0
50
100
150
200
14,000
18,000
22,000
26,000
30,000
34,000
38,000
42,000
1,000
900
800
700
600
500
400
300
200
100
0
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Grewth 1rend
R
s
.

M
n
Loan o/s
Mar-07 Mar-08
Uisbursements Borrowers
3ep-08
Abeut theMFl
lnoorporated in 1995, 3onata linanoe Pvt. Ltd. (3onata) was aoquired by its
ourrent management in 2006 following whioh the NBlC begun its
miorofinanoe programme. 1he promoters of the oompany have prior
experienoe of managing operations of a large miorofinanoe institution (Mll)
based in northern lndia. ln 2007, 3onata aoquired the miorofinanoe unit of
the 1eevika Livelihood 3upport 0rganisation in Madhya Pradesh as part of
its expansionplan.
3onata lends to joint-liability groups (1L0s) under the 0rameen Bank's
lending model. 1he oompany foouses on urban and semi-urban areas and
disburses one-year loans at an interest rate of 18 per oent on a flat basis. ln
addition, 3onata oharges Rs.100 as loan prooessing fee from its borrowers.
1he loan size varies between Rs.2,100 and Rs.19,150 based on the olient's
loan oyole and repayment oapaoity. As on 3eptember 30, 2008, the
oompany had about 70,000 members and a loan outstanding of Rs.352
millionspreadaoross 41branohes inuttar Pradesh andMadhyaPradesh.
3onata has reported strong growth from the inoeptionof its miorofinanoe
programme in 2006-07: its member base and total disbursements have
nearly quadrupledinsize sinoe Maroh 2007.
1he oompany has a good asset quality, whioh is refleoted in 99.91 per
oent of the portfolio being ourrent (oolleotions on time) as on 3eptember
30, 2008.
with the inorease in soale, 3onata has reported a oonsistent
improvement in its operational self-suffioienoy (033) ratio. 1he ratio,
during the six months ended 3eptember 30, 2008, stood at 136.24 per
oent. Although 3onata's oost of borrowing is expeoted to inorease over
the ourrent levels, CRl3lL expeots the 033 to remain well above 100 per
oent beoause of the relatively high lending rates.
3onata has been suooessful in raising oapital in the past, enabling the
oompany to maintainadequate oapitalisationlevels despite strong asset
growth and average profitability levels. 1he oompany had a debt-to-net
worth ratio of 6.6 times as on 3eptember 30, 2008. 1o fund its growing
asset size, 3onata will have to raise oapital in the next one to two years to
maintainadequate oapitalisationlevels.
5enata Flnance Pvt. Ltd.
Net profit Rs. Mn 10.09 0.31 -4.48
Net worth Rs. Mn 67.79 63.82 20.02
Portfolio yield 28.33 23.65 19.29
lund-based yield 26.92 20.10 12.49
Return on net worth 30.67 0.74 -32.51
Return on assets 6.50 0.18 -10.54
PAR>90 days 0.01 0.02 -
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. Anup Kumar 3ingh,
Managing Uireotor
Audlter: vinay Kumar & Co.,
Allahabad
Centact betalls:
1/1 Rai Bahadur Ram Charan Uas Road, Balrampur
ouse, Allahabad - 211002, uttar Pradesh
1el: +91-532-2441347, 2441855
Lmail: anupsonara|no|a.oom
web: www.sonara|no|a.oom
Members No. 69,835 49,422 13,100
Borrowers No. 61,935 44,387 11,393
Loan 0/3 Rs. Mn 352 233 51
2008 2001
Abeut theMFl
3pandana 3phoorty linanoial Ltd. (33lL) was inoorporated in 2003 as
3pandana 3phoorty lnnovative linanoial 3ervioes Ltd (33ll3L), a non-
banking finanoial oompany, by the promoters of 3pandana, a sooiety.
3pandana transferred its miorofinanoe portfolio to 33ll3L in 2004-05
(refers to finanoial year, April 1 to Maroh 31). 33ll3L was renamed in
2007-08.
33lL is the seoond-largest miorofinanoe institution (Mll) in the oountry in
terms of loans outstanding. As on 3eptember 30, 2008, the oompany had a
loan outstanding of Rs.11.98 billion and operations in eight states. 33lL
follows the hybrid group approaoh, whioh inoorporates the oharaoteristios of
the self-help group and0rameenBank lending models. 1he oompany offers
five types of loans with lending rates ranging from 21 to 24 per oent on a
deolining methodbasis. 33lL alsooffers oredit-plus servioes.
33lL registered a oompound annual growth rate (CA0R) of 37per oent in
disbursements, and 59 per oent in loan outstanding during the period
between 2005-06 and 2007-08. Uuring 2007-08, the oompany
ventured into five new states, whioh helped mitigate its geographio
oonoentrationrisk.
33lL has a good asset quality with 98.88 per oent of the portfolio being
ourrent (oolleotions on time) as on 3eptember 30, 2008 (inoludes
managed/assignment portfolio). 1he portfolio-at-risk (PAR) greater than
90 days aooounted for 1.10 per oent, as on the above date, as against
11.93per oent as onMaroh 31, 2007.
Uuring 2007-08, the oompany's net worth improved signifioantly
following a oapital infusion by 1 M linanoial 1rustee Company Pvt Ltd and
Lok Capital LLC. CRl3lL believes that 33lL will be able to raise additional
oapital at regular intervals toaohieve the targetedgrowth plans.
1he oompany has a diversified funding mix, whioh inoludes aooess to
long-term borrowings from banks and finanoial institutions. Additionally,
33lL has been optimising its resouroe requirement through the direot-
assignment route. 1his supports the Mll's finanoial flexibility and is not
dependent uponany one souroe toraise funds for growth.
33lL has improved its profits by inoreasing its business volumes. A
oombination of improvement in yield and operating expense ratio has
assisted it in sustaining its operations. Nevertheless, a signifioant
inorease in the borrowing oost oould impaot the profitability to some
extent during 2008-09.
5andana 5heerty Flnanclal Ltd.
ear ef cemmencement
Legal status: Publio Ltd Co. (NBlC)
Lendlng medel: 1L0, individual
Chlef xecutlve: Ms. Padmaja Reddy,
Managing Uireotor
Audlter: B3R & Company,
yderabad
Centact betalls:
Plot No. 79, vinayak Nagar, Care Crystal, Near 3penoer 3uper
Market, 0aohibowli, yderabad - 500032, Andhra Pradesh
1el: +91-40-44386666, lax: +91-40-44386626
Lmail: paomaja.reoo,spanoana|no|a.oom
web: www.spanoana|no|a.oom
Net profit Rs. Mn 341.32 270.64 27.14
Net worth Rs. Mn 1225.09 883.81 150.73
PAR>90days 1.10 4.49 11.93
Lmployees No. 4,629 3,066 1,911
Members No. 1,728,694 1,239,651 972,212
Borrowers No. 1,668,807 1,188,861 916,261
Uisbursement Rs. Mn 11,848 11,923 6,558
Loan 0/3 Rs. Mn 11,987 7,313 3,916
2008 2001
Grewth 1rend
0 900,000
1,200,000
R
s
.

M
n
1,350,000
1,500,000
1,650,000
1,800,000
2,000
4,000
6,000
8,000
10,000
12,000
1,050,000
5wayamshree Mlcre Credlt 5ervlces
ear ef cemmencement
Legal status: 3eotion 25 Company
Lendlng medel: 30

Chlef xecutlve: Mr. ParashuramNayak,
whole-time Uireotor
Bhubaneshwar
Centact betalls:
M-75, 3amanta vihar,
Bhubaneswar - 751013,
0rissa
1el: +91-674-2302646
Lmail: smos2003gma||.oom
Net worth Rs. Mn 8.41 4.61 2.46
PAR>90days 5.69 8.05 0.12
Abeut theMFl
3wayamshree Mioro Credit 3ervioes (3MC3) oommenoed its miorofinanoe
operations in 2003 in 0rissa's Khurda distriot. 3MC3 is promoted by the
Centre for outh and 3ooial Uevelopment (C3U), a leading non-
governmental organisation (N00) engaged in oommunity development
programmes in0rissa. 3MC3has presenoe in24distriots of 0rissa.
3MC3 follows the self-help group (30) model. 1he oompany offers
miorofinanoe to 30s promoted by itself as well as those promoted by other
partner N00s of C3U. 1he oompany provides loans for tenures between 10
months to 33 months, and it oharges 18 per oent interest per annum on a
reduoing balanoe basis. 1he loan amounts range between Rs.5,000 and
Rs.8,000. ln addition, 3MC3 oolleots one per oent of the loan amount as
prooessing fees and also provides life and general insuranoe servioes to its
olients through tie-ups with insuranoe oompanies. Apart from miorofinanoe,
3MC3 offers oapaoity-building and training support to 30s, small N00-
Mlls, andoooperatives.
3MC3's growth has been strong as evidenoed in a oompound annual
growth rate (CA0R) of 102 per oent in its members base, 118 per oent in
its disbursements, and 144 per oent in its total loan outstanding during
the period between 2005-06 (refers to finanoial year, April 1 to Maroh
31) and2007-08.
3MC3's operational expense levels have improved signifioantly during
the past two years as the oompany has outsouroed both group formation
and reoovery to C3U's partner N00s by paying a nominal fee. As a
result, the operational self-suffioienoy (033) ratio improved to 128.61
per oent during the six months of 2008-09. CRl3lL, however, believes
that operating expense levels will inorease in future as the oompany
expands to new regions independently. Moreover, 3MC3 has lower
spreads (differenoe between the rate of lending and the rate of
borrowing) as oomparedwith other large Mlls operating in the state and,
therefore, the oompany's profitability is also susoeptible to any inorease
inthe oost of borrowings.
3MC3's gearing oontinues to remain high at 16.12 times as on
3eptember 30, 2008, although it has deolined signifioantly from more
than 30.18 as on Maroh 31, 2008. CRl3lL believes that the high gearing
levels may oonstrain 3MC3's ability to grow its loan portfolio over the
medium tolong term.
1he oompany's growth will have to neoessarily be funded largely through
borrowings as its ourrent legal status does not allow it to raise oapital.
lnternal aooruals, while showing an improvement over earlier levels, are
not likely tobe suffioient tosupport growth plans.
3MC3's overall asset quality has improvedsignifioantly. As on3eptember
30, 2008, 92.64 per oent of the portfolio was ourrent (oolleotions on
time), improving from 89.49per oent as onMaroh 31, 2007.
Branohes No. 4 4 3
Members No. 64,462 51,309 26,307
Borrowers No. 40,034 28,450 15,868
Loan 0/3 Rs. Mn 161 137 65
2008 2001
Grewth 1rend
0 14,000
R
s
.

M
n
50
100
150
200
18,000
22,000
26,000
30,000
34,000
38,000
42,000
Abeut theMFl
3wAw3 Credit Corporation lndia Pvt. Ltd. (3CCl), a non-banking finanoe
oompany (NBlC), oommenoed its miorofinanoe operations in Maroh 2008
after taking over a majority of the loan portfolio of 3harada women's
Assooiation for weaker 3eotion (3wAw3). 3wAw3, a non-governmental
miorofinanoe institution, started its miorofinanoe programme in 1999.
3CCl's operations are spread aoross 12 distriots of Andhra Pradesh, 1amil
Nadu, 0rissaandMaharashtraas on3eptember 30, 2008.
1he oompany follows the 0rameen Bank model and predominantly foouses
on urban areas. 3CCl offers 50-week loans at an interest rate of 13.5 to 15
per oent on a flat basis to women's joint-liability groups (1L0) in urban and
semi-urbanareas.
1he miorofinanoe programme's growth has been moderate as evidenoed
in a oompound annual growth rate (C0AR) of 46 per oent in its member
base, 36 per oent in its disbursements, and 31 per oent in 3CCl's total
loan outstanding during the period between 2005-06(refers to finanoial
year, April 1 to Maroh 31) and 2007-08. CRl3lL expeots the oompany's
growth to be moderate given the presenoe of other large players in the
operating area.
3CCl has a good asset quality, whioh is refleoted in 99.87 per oent of the
1he portfolio-at-risk greater than 90 days is also low, although it has
marginally inoreasedto0.05per oent as onthe above date.
Uuring the first half of 2008-09, investors infused oapital into the
oompany, resulting in the net worth improving to Rs.114.63million as on
3eptember 30, 2008. 1he gearing as on the above date was 4.09 times.
CRl3lL expeots gearing to remain at adequate levels over the medium
term.
1he operational self-suffioienoy (033) ratio improved to 140.08 per oent
for the first six months ended 3eptember 30, 2008. Although CRl3lL
expeots this ratio to deoline marginally, the 033 is expeoted to remain
above average. 1he oompany had inoreased its lending rates during
0otober 2008 and this would, to some extent, mitigate inoreases in the
oost of borrowings and operating expense levels (on aooount of
expansionplans).
5WAW5 Credlt Cereratlen lndla Pvt. Ltd.
ear ef cemmencement
Legal status: Private Ltd Co. (NBlC)
Lendlng medel: 1L0
Chlef xecutlve: Ms. R. 0irija,
Chairperson
Audlter: aranath Reddy
& Co., yderabad
Centact betalls:
12-5-32 / 8, vijayapuri, 1arnaka,
3eounderabad - 560017, Andhra Pradesh
1el: +91-40- 27006142, lax: +91-40-2700 6129
Lmail: ramamurrh,_gmsoo|m|orof|nanoe.oom
web: www.soo|m|orof|nanoe.oom
Members No. 105,198 105,000 81,938
Borrowers No. 90,082 74,175 79,746
Loan 0/3 Rs. Mn 546 422 383
5CCl 5WAW5
2008 2008 2001
Net profit Rs. Mn 16.76 48.99 6.63
Net worth Rs. Mn 114.63 61.76 12.47
PAR>90days 0.05 0.03 0.11
5CCl 5WAW5
300 300
400
500
600
700
Mar-08
Grewth 1rend
70,000
Mar-07 3ep-08
80,000
90,000
100,000
R
s
.

M
n
Grewth 1rend
0
100
150
200
250
300
6,000
12,000
18,000
24,000
30,000
36,000
R
s
.

M
n
Abeut theMFl
Payakaraopeta women's Mutually Aided Co-operative 1hrift and Credit
3ooiety (PwMAC13) took over the miorofinanoe programme of 3tri 3anghala
Abhivruthi 3amakya, a non-governmental organisation, in 1997. As on
3eptember 30, 2008, the Mll had more than 31,000 borrowers and loans
outstanding of Rs.258 million aoross 74 villages in two distriots of Andhra
Pradesh.
1he N00-Mll follows both the self-help group (30) and the individual-
lending models, and offers loans at an interest rate of 19.2 per oent per
annum on a reduoing balanoe basis. 1he loan sizes range from Rs.5,000 to
Rs.50,000, and tenures from 20 months to 36 months. ln addition, the Mll
oolleots an upfront fee of Rs.20 and a loan prooessing fee ranging from
Rs.80 to Rs.500, depending on the loan amount disbursed. 1he loan
instalments are oolleotedby the Mll from the olients onabi-monthly basis.
1he Mll's growth was good, as shown by a oompounded annual growth
rate (CA0R) of around 156 per oent in its disbursements, and 125 per
oent in its loan outstanding, between 2005-06 (refers to finanoial year,
April 1to Maroh 31) and 2007-08. 1he oooperative has retainedits olient
base despite the presenoe of several large Mlls inthe region, beoause of
the flexibility that bimonthly repayments offer.
PwMAC13 has maintained good asset quality, refleoted in 97 per oent of
the portfolio being ourrent (oolleotions on time) as on 3eptember 30,
2008.
1he Mll has anaverage funding profile, as of Maroh 31, 2008, around63
per oent of the total borrowings were from anapex Mll andthe remaining
37per oent hadbeenmobilisedfrom three private banks.
1he inorease in lending rates in 2008 has resulted in the Mll's
operational self-suffioienoy (033) ratio improving to 111.97 per oent for
the first six months of 2008-09. 0perating expense levels improved
signifioantly beoause of healthy growth indisbursements during first half
of 2008-09. owever, CRl3lL expeots the 033 ratio of the Mll to remain
marginally above 100 per oent: being a oooperative, the Mll is expeoted
to operate on thin spreads and, therefore, its profitability is susoeptible
tooost of borrowings.
1he Mll's gearing level has improved oonsistently to 4.50 times as of
3eptember 30, 2008, from 28.33 times as of Maroh 31, 2007. 1his is
beoause of the inorease in membership base and oonsequent infusion
of share oapital by the members.
1he Payakaraeeta Wemen's Mutually Alded
Ce-eeratlve 1hrlft and Credlt 5eclety Ltd.
ear ef cemmencement
Chlef xecutlve: Mr. P v Ravikumar,
Audlter: Rao&Manoj Assooiates,
visakhapatnam
Centact betalls:
llat No 3&4, 3iva 3urya Apartments, 0pp 0owtham
Model 3ohool, Main Road, Payakaraopeta,
visakhapatnam Uistriot - 531126, Andhra Pradesh
1el: +91-8854 -252045, lax: +91-8854 -256117
Lmail: pwmaos,ahoo.oom
Net worth Rs. Mn 41.95 12.78 2.46
PAR>90days 0.12 0.14 0.03
Branohes No. 5 5 3
Members No. 35,254 22,513 10,650
Borrowers No. 31,040 16,114 6,992
Loan 0/3 Rs. Mn 258 159 65
2008 2001
lndia 1op 50 Miorofinanoe lnstitutions
Net profit Rs. Mn -16.40 -29.68 -15.26
Net worth Rs. Mn 126.44 94.88 32.86
Returnonnet worth NM NM NM
Returnonassets NM NM NM
PAR>90days 0.05 0.14 -
Abeut theMFl
ujjivan linanoial 3ervioes Pvt. Ltd. (ul3PL) is amongst the first few
miorofinanoe institutions (Mlls) in the oountry to design and run urban
miorofinanoe programmes. ul3PL has a strong and well-diversified board of
direotors oomprising professionals with extensive industry experienoe. 1he
oompany has been able to attraot oapital from many souroes at regular
intervals, helping it toexpandtosevenstates withinashort time span.
As on 3eptember 30, 2008, the oompany had more than 151,330members
aoross 96 branohes in Karnataka, 1amil Nadu, Uelhi, Rajasthan, uttar
Pradesh, aryanaandwest Bengal.
ul3PL follows the 0rameen Bank as well as the individual models of
lending. 1he loans range from Rs.6,000 to Rs.25,000, with interest rates
ranging between 25 and 26.9 per oent per annum on a reduoing balanoe
basis. 0ne-year individual loans (up to Rs.25,000) that are targeted at
entrepreneurs oarry interest rates ranging from 24 per oent to 28 per oent
per annum onareduoing balanoe basis. ul3PL alsoprovides top-up loans to
existing borrowers to meet their oonsumption and emergenoy oredit
requirements.
1he oompany has good asset quality, whioh is refleoted in 99.80per oent
of the portfolio being ourrent (oolleotions on time) as on 3eptember 30,
2008.
ul3PL has aooess to several finanoial institutions, despite this, its oost of
borrowing inoreased to 9.60 per oent during the six months ended
3eptember 30, 2008 from 6.65 per oent for the year ended Maroh 31,
2008(refers to finanoial year) as a result of resouroes being mobilised at
higher interest rates.
with more than 200 per oent growth in branohes during the past two
years, ul3PL has adopted an aggressive growth strategy. 1his has
resulted in high establishment oosts and, therefore, the oompany has
not aohieved 100 per oent operational self suffioienoy (033). As more
branohes attain break even, CRl3lL expeots the oompany to register
profits over the medium term.
Although ul3PL has aooumulated losses, regular equity infusion by its
investors has enabled the oompany to maintain gearing at satisfaotory
levels of 5 times as on 3eptember 30, 2008. Uuring the seoond half of
2008-09, the oompany raised additional oapital (Rs. 878.86 million).
CRl3lL expeots this oapital infusion to enable ul3PL to meet oapital
adequaoy norms that are required to be followed by systemioally
important non-deposit taking NBlC. Uuring 2008-09, ul3PL's asset
base surpassed Rs.1 billion and, therefore, the oompany has
automatioally beoome a systemioally important non-deposit
taking NBlC.
Ujjlvan Flnanclal 5ervlces Pvt. Ltd.
ear ef cemmencement
Legal status: Private Ltd Co. (NBlC)
Lendlng medel: 1L0, individual
Chlef xecutlve: Mr. 3amit 0hosh,
Managing Uireotor and
Audlter: Ueloitte askins & 3ells,
Bangalore
Centact betalls:
93, 1akkasandra Lxtension, 3arjapurMain Cross Road,
Koramangala 1st Blook, Bangalore - 560034, Karnataka
1el: +91-80-40712121, lax: +91-80-4146 8700
Lmail: ujj|van.b|rujj|van.oom
web: www.ujj|van.oom
NM. Nor mean|ngfu|
Lmployees No. 1,327 551 197
Members No. 151,330 68,033 22,220
Borrowers No. 132,067 58,646 18,561
Uisbursements Rs. Mn 1,461 635 120
Loan 0/3 Rs. Mn 837 366 84
2008 2001
Grewth 1rend
0 0
R
s
.

M
n
250
500
750
1,000
1,250
1,500
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Abeut theMFl
village linanoial 3ervioes Pvt. Ltd. (vl3PL), a part of the village group,
oommenoed its miorofinanoe operations in 1anuary 2006. 1wo other
miorofinanoe institutions (Mll)--village welfare 3ooiety (vw3) and village
Mioro Credit 3ervioes (vMC3), a seotion 25 oompany-form part of the group.
vl3PL has taken over the miorofinanoe portfolio of vMC3 in multiple
tranohes and vw3's portfolio is expeoted to be transferred gradually to the
non-banking finanoe oompany (NBlC) during 2009-10.
vl3PL offers loans to joint-liability groups (1L0): the 45-week loans are
disbursed at an interest rate of 12.5 per oent on a flat basis. 1he NBlC
oolleots 10per oent of the amount disbursed as seourity deposit and 1.5per
oent as insuranoe fee. 1he oompany has tied-up with an insuranoe oompany
to offer group insuranoe sohemes as well. As on 3eptember 30, 2008,
vl3PL had55,371borrowers, spreadaoross five distriots of west Bengal.
Uuring 2007-08 (refers to finanoial year, April 1 to Maroh 31), vl3PL's
member base inoreased by about 178 per oent, disbursements by 290
per oent, and the loan outstanding by 218per oent. Most of this inorease
was aooountedby the oompany's takeover of the group branohes.
vl3PL has a good asset quality with 99.73per oent of the portfolio being
1he oompany had a moderate operational self suffioienoy (033) ratio of
116 per oent during the past two years. vl3PL has restruotured its loan
produots and, as a result, portfolio yields have deolined. Although
operating expense levels are expeoted to improve, the 033 ratio is
expeoted to remain at ourrent levels as the gross interest spreads are
likely todeoline due toinorease inthe oost of borrowings.
1he oompany's oapitalisation levels are moderate with a net worth of
Rs.21.83 million and a relatively high debt-to-net worth ratio of 9.36
times as on3eptember 30, 2008. lnorder tofunds its growing asset size,
vl3PL will need to raise oapital. CRl3lL believes that, given the long
experienoe of the vl3PL's promoters in the miorofinanoe seotor, the Mll
wouldbe able toraise oapital requiredtosupport its business growth.
vlllage Flnanclal 5ervlces Pvt. Ltd.
Net worth Rs. Mn 21.83 18.20 11.23
0perating expense 10.65 11.14 16.27
PAR>90days 0.25 0.42 -
ear ef cemmencement
Lendlng medel: 1L0
Chlef xecutlve: Mr. Kuldip Maity,
Managing Uireotor
Audlter: 3 R B & Assooiates,
Kolkata
Centact betalls:
village 1ower, l-15, 0eetanjali Park, 18/3A, Kumud
0hoshal Road, Ariadaha, Kolkata - 700057, west Bengal
1el: +91-33-2544-6545 / 2564 5786
lax: +91-33-2544 3240
Lmail: ku|o|pv|||age.ner.|n web: www.v|||age.ner.|n
Members No. 66,696 54,501 19,632
Borrowers No. 55,371 47,717 17,466
Loan 0/3 Rs. Mn 209 172 54
2008 2001
0
50
100
150
200
250
350
Mar-08
Grewth 1rend
R
s
.

M
n
10,000
20,000
30,000
40,000
50,000
60,000
Mar-07 3ep-08
Grewth 1rend
0 30,000
R
s
.

M
n
50
100
150
200
250
35,000
40,000
45,000
50,000
55,000
60,000
65,000
Net worth Rs. Mn 26.49 3.53 0.90
0perating expense 7.54 6.22 3.96
PAR>90days 6.00 3.16 -
Abeut theMFl
1he welfare 0rganisation for Multipurpose Mass Awareness Network
(w0MAN), a sooiety engaged in oommunity development programmes,
started its miorofinanoe programme in 2005. 1he non-governmental
miorofinanoe institution (Mll) follows a self-help group (30) model. w0MAN
offers all four of its loan produots at 12 per oent interest rate on a flat basis,
loan amounts range from Rs.2,000 to Rs.25,000, while tenures range
between 5 months and 36 months. ln addition, borrowers have to pay a
prooessingfeerangingfromRs.25toRs.100, dependingontheloanproduot.
1he Mll also provides skill-based training to women olients and organises
weekly markets at its offioe to help members market their wares. As on
3eptember 30, 2008, w0MAN had 63,650 borrowers spread aoross eight
distriots in1amil Nadu.
1he Mll's asset quality slipped during 2007-08 owing to bad publioity
(believed to have been the handiwork of some disgruntled staff
members) and the government's loan-waiver announoement, whioh was
misunderstood by many borrowers. As a result, as on Maroh 31, 2008,
the portfolio being ourrent (oolleotions on time) slipped to 86.68 per
oent. 1he Mll has oommenoedefforts tooolleot its dues from borrowers.
lollowing the fallout of the above-mentioned events, the Mll slowed the
paoe of its disbursements during 2007-08. Consequently, the loan
portfolio deolined to Rs.158 million as on Maroh 31, 2008 from Rs.209
million as on Maroh 31, 2007. Uisbursements have inoreased again
during the first six months of 2008-09.
w0MAN has a moderate borrowing mix, as on Maroh 31, 2008, about
63.82 per oent of the total borrowings were aooessed from lClCl Bank
(partnership loans), and29.43per oent from lndian0verseas Bank. Uue
to its relianoe on a few lenders, the Mll's ability to raise funds is limited
as oomparedwith Mlls with more diverse funding profiles.
0earing improved to 6.97 times as on 3eptember 30, 2008 from 54.38
as on Maroh 31, 2008 on aooount of grants and deoline in bank
borrowings.
1he operational self-suffioienoy (033) ratio improved to 131.11 per oent
for the first six months of 2008-09. Apart from the inorease in lending
rates and shift to interest-free seourity deposits (the Mll earlier
aooessed savings by paying nominal interest), the oolleotion of overdues
(w0MAN reoognises inoome on oash basis) also oontributed to inorease
in yields. As a result, the portfolio yield was higher than the lending rate.
CRl3lL expeots 033 to oome down from the ourrent levels over the
medium term faotoring in the oredit oosts and inoreasing operating
expense levels.
Welfare 0rganlsatlen fer Multlurese
Mass Awareness Netwerk
ear ef cemmencement
Lendlng medel: 30
Chlef xecutlve: Ms. Kannaghi
Chandrashekheran,
Chairperson
Audlter: M 1homas & Co.,
1iruohirapalli
Centact betalls:
0ld no: 70, New no: 14, 5th Cross, Bharathi Nagar,
Puthur, 1iruohirapalli - 621217,
1amil Nadu
1el: +91-431-2420505
Lmail: woman_orgreo|ffma||.oom
Members No 133,300 112,650 98,175
Borrowers No 63,650 40,966 32,626
Loan 0/3 Rs. Mn 191 158 209
2008 2001
A5Alendlng medel: ls the joint liability group lending model popularised Mlcreflnance lnstltutlen (MFl): An Mll provides oredit, thrift, and other
by A3A (formerly known as Assooiation for 3ooial Advanoement) and is finanoial servioes and produots mainly to the eoonomioally ohallenged for
similar to 0rameen Bank model of lending. lndividual borrowers of eaoh enabling them to raise their inoome level and improve living standards.
1L0 belong to the same area. 1he group is not required to give any Mll oustomers are typioally those who do not have aooess to banking and
guarantee for a loan extended to its members. 1he level of depend on informal souroes (suoh as friends, money lenders) for their
standardisation of prooedures is higher than other 1L0 models and oredit requirements.
usually is oonsideredoost effeotive.
Mlcreflnance: Miorofinanoe is the provision of oredit, thrift, and other
Bllateral asslgnment: lt is a transaotionwhere the loan oontraots on the finanoial servioes and produots of very small amounts to the poor for
books of the seller are transferred (sold) to the aoquirer. Post this enabling them to raise their inoome levels and improve their living
assignment, the aoquirer owns these assets whioh are refleoted as part standard.
of his loanbook. Alsoreferredtoas portfoliobuy - out.
Mutual beneflt trust (MB1): MB1 is a oommunity owned federation of
Cemulsery,mandatery savlngs: 3avings are mandated as part of the 30s and registered under lndian 1rust Aot, representing around 100-
terms for loans and/or membership. 1he amount and frequenoy of the 200 30s. lndividual members of eaoh 30s are allowed to beoome
savings are deoided on the basis of members' oapaoities and/or their members of the trust.
oredit requirement. Members are alsoallowedtowithdrawthe savings at
Mutually-alded ceeeratlve secletles (MAC15): MAC13 are registered the endof the loanterm or whenthey terminate their membership.
under mutually aided oooperative sooiety aots (MAC13 Aot) of their
Credlt-lus servlces: Refers to a wide range of non-finanoial servioes respeotive states. 0nly few states in lndia have a MAC13 Aot in plaoe. 1he
offered by Mlls, suoh as business development servioes, training, oooperatives formed under the MAC13 Aot enjoy greater freedom than
insuranoe, and even sooial servioes, suoh as health, nutrition, those registered under the state oooperative aots. As the MAC13 Aot
eduoation, andfamily planning. prohibits the sooiety from raising oapital from the government, the
politioal interferenoe under this Aot is typioally lower than in oase of
Cellectlen efflclency: 1he on-time repayment rate is used as an sooieties registeredunder the state oooperative aot.
indioator for oolleotion effioienoy, it measures the amount of payment
reoeivedwith respeot toamount due onapartioular date. Pertfelle at rlsk (PAR): Represents the value of all loans outstanding that
have one or more instalments of prinoipal due for more than a oertain
blverslfled lendlng methedelegy: An Mll is said to have a diversified number of days. lt inoludes the entire unpaid prinoipal balanoe, inoluding
lending methodology when it offers loan produots through various past dues and future instalments, but not aoorued interest. lt also does
lending methodologies: self help group (30) model, joint liability group not inolude loans that have beenrestruoturedor resoheduled.
(1L0) model, andindividual based.
Partnershl medel: under this model, the Mll wouldsouroe loans direotly
Federatlen: A network of several 30s, with representatives from all in the books of the bank and oontinue to monitor and reoover loans
member 30s and a motive of supporting member 30s to attain the disbursed, for aoommission.
goals of eoonomio and sooial empowerment of members and their
oapaoity building. Prefltablllty: lndioates the Mll's ability to generate earnings in exoess of
its expenses and other relevant oosts inourred during a speoifio period of
Grameen Bank, Bangladesh, medel ef lendlng: lndividual borrowers time.
must belong to a five-member group, eaoh group, in turn, belongs to a
oentre that generally has three to seven suoh groups. 1he group is not 5elf-hel greu (5RG): An 30 has 10 to 20 members of same looality,
required to give any guarantee for a loan extended to its members. eaoh group meets at frequent interval either monthly or weekly. At eaoh
owever, no further loans are given to the group if any member does not meeting, all members oontribute identioal amounts as savings. 1he
repay their loan on time. Repayment responsibility solely rests with the groups thenlendthese savings tomembers.
individual borrower, while the group and the oentre try to ensure that
5uberdlnated debt: A loan (or seourity) that ranks below other loans (or everyone behaves responsibly andnoone defaults.
seourities) with regard to olaims on assets or earnings. ln the oase of
Rybrld lendlng methedelegy: 1his refers to lending either based on default, oreditors with subordinated debt would not get paid out until after
popular group methodologies, suoh as 1oint Liability 0roup (1L0), the senior debt holders were paid in full. 1herefore, subordinated debt is
0rameen Bank model, and A3A (formerly Assooiation for 3ooial more risky than unsubordinated debt. lt oould be oonsidered as part of
Advanoement) model, or their modified versions based on needs of its 1ier ll oapital.
members inthe looal oontext.
5ustalnablllty: 3ustainability is the ability of an Mll to maintain its
lnterest rate sread: 1his refers to the differenoe between the rate at operations and oontinue to provide servioe to its members based on
whioh the Mll oharges for its loans and the rate it pays for its borrowings. stability of its operations, its programmes, and its revenue generation
lor any finanoially sustainable institution, this spread is large enough to oapabilities.
oover operating oosts, the oost of provisions for loans, and other non-
operating expenses.
Jelnt llablllty greu (JLG): A group of 5 to 10 members from similar
sooio-eoonomio status and baokground agreeing to funotion as a 1L0.
Laoh 1L0 meets at frequent interval either monthly or weekly. 1he
members should be residing in the same village/area and should know
andtrust eaoh other well enough toform 1L0s andavail individual loans.
1RMlN0L0G
6l0888f
ABBRvlA1l0N5
A3A Assooiationfor 3ooial Advanoement
CAR Capital Adequaoy Ratio
CL0 Chief Lxeoutive 0ffioer
CA0R CompoundAnnual 0rowth Rate
lls linanoial lnstitutions
lwwB lriends of women's worldBanking
1L0 1oint Liability 0roup
MAC13 Mutually AidedCooperative 1hrift 3ooiety
MU Managing Uireotor
Mlls Miorofinanoe lnstitutions
NABARU National Bankfor Agrioulture andRural Uevelopment
NBlC Non-Banking linanoial Company
NBlC-NU-3l 3ystemioally lmportant, Non-Ueposit 1aking, Non-Banking linanoial Company
N00 Non-0overnmental 0rganisation
N00-Mll Non-0overnmental 0rganisation- Miorofinanoe lnstitution
033 0perational 3elf 3uffioienoy
PAR Portfolioat Risk
PAR>90 Portfolioat Riskfor more than90days
RMK RashtriyaMahilaKosh
30 3elf elp 0roup
K FlNANClAL RA1l05
lndlcaters beflnltlen
Capital adequaoy ratio(CAR) 1angible net worth/Riskweightedassets (RwA)
Portfolioyield lnterest inoome/Average total loanoutstanding
lunds deployed 1otal assets - net fixed assets. CRl3lL oaloulates ratios on funds deployed instead
on loans outstanding, as there are other earning assets besides loans outstanding
onanMll's balanoe sheet.
ieldonfunds deployed lnterest inoome on loans and bank deposits, and investment inoome/Average
funds deployed
0perating expenses Personnel expenses, administrative expenses, anddepreoiation.
Cost of borrowing 1otal finanoial expenses/ Average borrowing
Returnonnet worth Net profit/ Average net worth
Returnonassets Net profit/ Average total assets
Net profitability margin(NPM) NPM is definedas (yieldonfunds deployed) - (average borrowing oosts) - (operating
expense ratio) +(fee inoome levels)
0perational self-suffioienoy (033) 1otal inoome/1otal expenses. Uoes not inolude revenue grants reoeived and
expenses out of revenue grants
PAR>90days () Lntire prinoipal outstanding against loans that are overdue for more than 90
days/1otal loans outstanding
Colleotioneffioienoy (Reoovery of loan due)-(Prepayment of prinoipal amount)/1otal demand on a
partioular date
80l08
80l08
Managing Uireotor & Chief Lxeoutive 0ffioer
Reea Kudva
3enior Uireotor
Raman Uberel
Pawan Agrawal
Uireotor pagrawalorisil.oom +91 (22) 6691 3301
Ramraj Pal
Uireotor rpaiorisil.oom +91 (22) 6691 3036
Retal balal
ead hdalalorisil.oom +91 (22) 6691 3023
1arun Bhatla
ead tbhatiaorisil.oom +91 (22) 6691 3226
Amlt Mlshra ammishraorisil.oom
blvya Murall ddevallaorisil.oom
5udhlr Narayan snarayanorisil.oom
5 vljaykumar svijayorisil.oom
1 Raj 5ekhar trajsekharorisil.oom
N Renganayakl nrenganayakiorisil.oom
Mukesh Agarwal
Uireotor magarwalorisil.oom +91 (22) 6691 3035
Maya vengurlekar
ead mvengurlekarorisil.oom +91 (22) 6691 3130
5achln Guta
ead sguptaorisil.oom +91 (11) 4250 5108
varsha 1ahlllanl vtahilianiorisil.oom
ANAL1lCAL C0N1AC15
BU5lN55 bvL0PMN1
beslgn and Preductlen
Uisolaimer
CRl3lL has taken due oare and oaution in preparing this report. lnformation has been obtained by CRl3lL from souroes whioh it oonsiders
reliable. owever, CRl3lL does not guarantee the aoouraoy, adequaoy or oompleteness of any information, and is not responsible for any
errors in transmission, and espeoially states that it has no finanoial liability whatsoever to the subsoribers / users / transmitters /
distributors of this report.
Nopart of this report may be reproduoedinany form or any means without permissionof the publisher.
Contents may be usedby news mediawith due oredit toCRl3lL.
CRl3lL. All rights reserved.
0cteber 2009
CRISIL RaIihgs Ioday provides Ihe widesI coverage oh crediI qualiIy ih Ihdia, crediI raIihgs ouIsIahdihg oh more
Ihah 2300 ehIiIies ahd per!ormahce raIihgs oh more Ihah 5954 SMLs as oh 1uhe 30, 2009. Sihce ihcepIioh, CRISIL
has raIed over 7839 ehIiIies (excludihg SMLs) wiIh IoIal debI aggregaIihg Io more Ihah Rs. 28.65 Irillioh .
CRISIL RaIihgs has a 70 per cehI peheIraIioh by volume ih Ihe domesIic bohd markeI. CRISIL RaIihgs raIes virIually
every kihd o! orgahisaIioh, ihcludihg ihdusIrial compahies, bahks, SMLs, hoh-bahkihg !ihahcial ihsIiIuIiohs,
micro!ihahce ihsIiIuIiohs, ihsurahce providers, muIual !uhds, ih!rasIrucIure ehIiIies, sIaIe goverhmehIs, ahd urbah
local bodies. II also raIes securiIised paper.
CRl5lL RATlNG5
8ahgalore 560 042, Ihdia.
1LL +91 (80) 2558 0899, 2559 4802
FAX +91 (80) 2559 4801
Chennoi
Mezzahihe Floor, 1hapar House
43/44, MohIieIh Road
Lgmore
Chehhai 600 008
1LL +91 (44) 2854 6205, 2854 6093
FAX +91 (44) 2854 7531
Hyderobod
3rd Floor, Uma Chambers
PloI ho. 9 & 10, Nagar|uha Hills
(Near Puh|aguIIa X Road)
Hyderabad 500 082, Ihdia.
1LL +91 (40) 2335 8103 / 8105
FAX +91 (40) 2335 7507
www.crisil.com
C-1, 1sI Floor
PloI No. 1 & 2
Ishwar Nagar
Near Okhla Crossihg
New Delhi 110065
1LL +91 (11) 4250 5100, 2693 0117 / 121
FAX +91 (11) 2684 2212
Fune
1187 / 17 Chole Road
Shiva|ihagar
Puhe 411 005, Ihdia.
1LL +91 (20) 4018 1900
FAX +91 (20) 4018 1930
CRl5lL Offices
Heod Office
CRISIL House
121 / 122 Ahdheri-Kurla Road
Ahdheri (LasI)
Mumbai 400 093, Ihdia.
1LL +91 (22) 6691 3001 - 09
FAX +91 (22) 6691 3000
RegionoI Offices in lndio
Ahmedobod
303, PariIosh, Usmahpura
Ahmedabad 380 013, Ihdia.
1LL +91 (79) 4024 4500, 2755 0317
FAX +91 (79) 4024 4520
ongoIore
W-101, Suhrise Chambers
22, Ulsoor Road
KoIkoto
Horizoh, 4Ih !loor
57, Chowrihghee Road
KolkaIa 700 071, Ihdia.
1LL +91 (33) 2289 1949 / 1950
FAX +91 (33) 2283 0597
New DeIhi
1he Mira
A FinanciaI Awareness !nitiative ol CR!S!L
l80l 10F 0
Nl080fl880l l8$1l101l08$

CRISIL Ratings India Top 50 Mfis

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CRISIL Ratings India Top 50 Mfis

Uploaded by

Copyright:

Available Formats

0cteber 2009

You might also like