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Analysis of Sustainability, Growth, and Development of a Leading Microfinance Institution in Bangladesh-Case Study on TMSS

Analysis of Sustainability, Growth, and Development of a Leading Microfinance Institution in Bangladesh-Case Study on TMSS
Exam Roll Number: 030056 Registration Number: 19246 4th year, 8th semester

Batch Number: 13th, BBA Program

Academic Session: 2003-04 Jahangirnagar University Savar, Dhaka

Elaboration

InM-Institute of Microfinance TMSS-Thengamara Mahila Sabuj Sangha PKSF-Palli Karma Sahayak Foundation

Sampling Design 3 branches of TMSS for surveying members. Also covered liaison and head offices of TMSS along with other 3 branches for surveying the employees. Following table shows the convenience sampling which was covered for the study:
Determination of Sampling from 3 branches of TMSS in Dhaka district Particular s Head Office Liaison Office Name of the Branch of TMSS

Gazipur Employe es Employe es

Ashulia Employe es

Employees
Gazipur Sadar (BADP Project) 8 4

Members
Gazipur Sadar (BADP Project) 105 11

Members

Moucha k Population Sample 25 5 10 2 8 2

Moucha k 1651 11

Zirabo

Zirabo

8 2

1331 10

Organogram of InM

Executive Director

Director
Deputy Director

Consultant

Assistant Director

Officer

Office Assistant (Grade-1)

Office Assistant (Grade-2)

Intern

Organogram of TMSS
General Body
Advisors (Finance) Advisors (Programs)

Executive Committee

Executive Director
Director (Finance & Admin) Director (Operations)

Deputy Director (Finance & Accounts)

Deputy Director (Research & Monitoring) Assistant Director (Research and Monitoring)

Deputy Director (Operations)

Assistant Director (Audit)

Assistant Director (Admin.)

Assistant Director (Finance & Accounts)

Assistant Director (Training)

Assistant Director (Operations)

Manager (Audit)
Audit Officer

Manager (Admin.)

Accounts Manager (Accounts)

Accounts Officer Assistant Accounts Officer Accountant

Program Manager (Training)

Program Manager (Researcher / Program / Monitoring)

Monitoring Officer

Program Manager (Micro Finance)

Assistant Program Manager Branch Manager

P. M. / P. C. / M. Officer

Technical Office

Assistant Audit Offer

Admin Officer/ Sr. Officer (Cash & store) Store Officer/ Asstt Admin Officer Store Keeper

Trainer Training Center In Charge

Research Associate

Project Trainer
Tech. Support Staff FO

Data Entry Officer

Branch Officer

Cashier

Data Collector

Field Officer

Service Staff

Service Staff

Service Staff

Service Staff

Brief Overview

Establishment date of PKSF-1990 Establishment date of InM-August 2006 Establishment date of TMSS-1964 Functioning date of TMSS-1980 Establishment date of ASA-1978

Overview of InM and its Governance

Institute of microfinance (InM) is managed by -Governing Body and -General Body.

General Body is comprises of 15 members, including 7 (seven) members of the Governing Body.

Professor M.A. Baqui Khalily is the Executive Director of the Institute of Microfinance (InM). Dr. Wahiduddin Mahmud is the first chairman of InM. Professor Dr. Hosne-Ara Begum is the Executive Director of the Thengamar Mahila Sabuj Sangha (TMSS)

Human Resources of InM

-Twenty full time employees -One part time employee, and -Nine interns. There are three divisions are directed by the institution. These are -Research and Knowledge Management; -Education and Training; and -Administration and Accounts. One consultant in data management is working on contractual basis.

The Project Part

Objective of the Study Broad objective The broad objective of this study is to analyze the sustainability, growth, and development of TMSS to create an idea how TMSS is growing and operating successfully that will result in a set of lessons for the small microfinance institutions in Bangladesh.

Objective of the Study

Specific objectives 1.To identify the constraints faced by TMSS while conducting their operations and recommend the applicable strategies to improve their condition; 2.To find out key drivers for growth, efficiency, sustainability, and core competencies of TMSS, that makes TMSS more successful in the microfinance industries; 3.To focus on growth process, business model, and overall performance of TMSS, and compare these with one peer microfinance institution (Here consider ASA as a peer microfinance institution of TMSS) of Bangladesh; 4.To analyze the TMSS overall contribution in Bangladesh; and 5.To draw specific lessons from the above analyses for small MFIs who are currently at their growth phase so that they can make further untreated improvement.

Methodology
This study was a descriptive research. There are 2 types of data- primary and secondary data. Primary sources of data were1. Personal observation; 2. Interaction with the beneficiaries of TMSS; and 3. Interview with the employees of the TMSS. Secondary Sources of data were1. Annual reports and financial documents of TMSS; 2. Published documents and reports from InM; and 3. Relevant information from websites.

Limitations of the Study

1. Research study is comprehensive in nature. To make research effective, adequate time is needed to observe the associated facts on related issues; 2. Lack of experience and expertise regarding research area; 3. Hidden transaction costs and other associated costs information was not mentioned properly as the updated record keeping very much confidentially and maintain secretly by the TMSS; and 4. It is impossible to survey all of the 533 branches of TMSS to know accurate financial condition as it is necessary for preparing the financial sustainability ratios and index.

Journey of TMSS

Establishment date of TMSS- 1964 Actively functioning from- 1980 The prompters of those societies were Fatema Bewa and Jomela Bewa. Prof Dr. Hosne-Ara Begum took the responsibility of TMSS as an executive director. She maintained a close co-ordination with the 14 para groups. She also formed 21members management committee from 225 women and rice was taken as deposit in her residence. Thus the journey of TMSS began...........

Over view of TMSS

Vision of TMSS Happy and Prosperous Women in the Society. Mission Statement of TMSS TMSS provides its best efforts in bringing the poor Womenfolk's life/living conditions at a dignified level in the family and society through their capacity building, optimum use of their own/available resources, participation in development activities and fulfillment of their legitimate rights and management of their sustainability. Goal of TMSS Goal of TMSS is Women empowerment. Objective of TMSS Broader Objectives of TMSS The Objective of TMSS is to develop the present socio-economic conditions of the targeted beneficiaries through execution of their decision and using unutilized local resources, participation in development of their legitimate rights.

Over view of TMSS - Continued

Specific Objectives of TMSS 1. Organization building with the targeted beneficiaries; 2. Raising awareness and develop human resources; 3. Remove illiteracy through education & training; 4. Transfer technology for increasing the productivity and Skill development and create employment; 5. Remove gender disparity; improve health status for children & women; 6. Ensure development of Agriculture, Forestry, Livestock, Environment, and Sanitation; 7. Increase GO, NGO co-ordination and cooperation; 8. Disaster management rehabilitation work; and 9. Capacity building of local partner, NGOs etc which are working for women empowerment.

Over view of TMSS - Continued

Values of TMSS 1. Human potential and self sufficiency,

2. Gender equality and ensuring women rights,

3. Peace and prosperity through innovation, 4. Honesty, 5. Accountability, 6. Judgment, 7. Transparency, 8. Environmental soundness, etc.

Over view of TMSS - Continued

Executive Committees of TMSS
Executive committees - 15 members - elected by the general committee of TMSS in every 3-year. This committee is in charge of assigning the executive director.

Management of TMSS
A 6 level organizational structure These are Para Group (PG), Village Organization (VO), Village Development Committee (VDC), Union Development Committee (UDC), Thana Development Committee (TDC) and District Development Committee (DDC). Management - participatory and democratic approach The General Body Members are the Chairperson of the Village Organization of TMSS.

Over view of TMSS - Continued

Department
-Planning Research & Publication -Human Resource Development (HRD) -Finance & Accounts -Audit 1. Internal Audit 2. External Audit, and 3. Manpower of Audit

Over view of TMSS - Continued

Clients/Beneficiaries of TMSS
1. Ultra Hard-Core Poor,

2. Hard-Core Poor/Poorest of the poor,

3. Poor, 4. Progressive Member/Small and Medium Entrepreneur, 5. Other Community People, 6. Partner Organization, and 7. Sister Organization.

Over view of TMSS - Continued

SWOT Analysis of TMSS Strength (S) Visionary leadership, supportive policy environment, effective donors, physical and social environment, PKSF, management within the political economy, institutional process learning. Weakness (W) Lack of strong market linkage, lack of information communication technology (ICT) orientation, skilled employees, etc. Opportunities (O) Low-cost production; flexible production resource; proximity to markets; access to land and other key resources; Social responsibility; and unique products.

Threats (T) Transaction costs; standard; capacity; value chain governance; and business environment.

Over view of TMSS - Continued

Characteristics of Microfinance Delivery Models of TMSS

SI No.

Financial Service

Characteristic

Description

Credit

Loan amount Loan term Repayment installments Interest charges Collateral

1000 BDT-500000 BDT. 2.5% requirements needed to get the loan.

saving

Usually 12 months, occasionally less, sometimes greater like 3 years. Monthly or weekly usually fixed, equal amounts. Generally 45 installments a year. 2%-12.50%, average interest charge by PKSF is 7%. No physical collateral.

Over view of TMSS - Continued

Characteristics of Microfinance Delivery Models of TMSS-Continued 2 Savings Amount deposited Withdrawals Compulsory, Voluntary, and Long term fixed deposits to its clients Compulsory savings cannot be withdrawn Voluntary savings often require some notice of withdrawal Most programs pay 4-6% interest (not consistent) TMSS charge 5 BDT on 1000 BDT

Interest paid 3 Insurance Life

Types client

of Ultra Hard-Core Poor

Hardcore Poor/ Poorest of the Poor Poor

Asset& homeless floating people

Less than 3 decimals of land, no savings

At least 50 decimals of land in each household, who is owner of below Tk. 25,000

Over view of TMSS - Continued

Characteristics of Microfinance Delivery Models of TMSS-Continued

Other

Loan Portfolio Organizational Ideology

Institutional Structure

Highly volatile and risk heavily dependent on portfolio management skills Non-dependent on government and cost recovery objective vs. profit maximizing
Decentralized, regulation insufficient external control and

Lending models Follows HEM model, peer based group lending model Remittances TMSS Charges 30 BDT for first 1000 BDT and 10 BDT for next 1000 BDT

Over view of TMSS - Continued

Business Model and Major Programs of TMSS
TMSS follows Grameen model of group or peer based model, it has also invented cost efficient HEM (Health, Education and Micro Finance) model. TMSS focus on to achieve Millennium Development Goals (MDGs) by 2015. Its 3 major targets are1. Eradicate extreme poverty and hunger, 2. Achieve universal primary education, and 3. Improve maternal health.

Major Programs of TMSS -Human Development and Training Program -Education Program -Agriculture and Para Agriculture Program -Income Generating Activities (IGA) and Job Creation Program -Health and Nutrition Services -Disaster Management -Women, Children and Gender Development Program -Monga Mitigation Program (MMP)

Over view of TMSS - Continued

Major product of TMSS (Several)
-Savings product -Safety-net products -Micro credit products -Micro enterprise product -Employment generation product -Financial entitlements product -Non-financial services

Savings System of TMSS ( 3 types)

-General Savings

-Flexible Savings
-Special Savings

Over view of TMSS - Continued

Features of Loans (Generally 2 types) -General loan -Sectoral and micro-enterprise development program loan Types of Loan of TMSS (Several) -Sanitary Loan -Livestock Loan -Fish Cultivation Loan -Crop Loan -Housing Loan

Analysis of TMSS
Growth, Efficiency, Sustainability, and Productivity of TMSS and Its Overall Contribution in Bangladesh Table 01
Year 2002 2003 2.9362 2004 2.7317 2005 3.7409 2006 3.8268 2007 4.2285

Debt / Equity (D/E) Ratio of TMSS 2.9035

Debt / Equity Ratio of TMSS

Interpretation
Debt/Equity

From the analysis, it is obvious that from year 2002 to year 2007 debt/equity ratio of TMSS is increasing. D/E Ratio-Indicator Structure of Financial

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2002 2003 2004 2005 2006 2007 YEAR

Debt / Equity Ratio of TMSS

Analysis of TMSS
Table 02
Year Cost per Borrower of TMSS 2002 10.7 2003 7.9 2004 8.5 2005 10.3 2006 11.4 2007 12.6

Cost per Borrower of TMSS

Interpretation
Operating Expense/Average No. of Active Borrowers

14 12 10 8 6 4 2 0 2002 2003 2004 2005 2006 2007 YEAR Cost per Borrower of TMSS

Here, from the analysis, it is obvious that from year 2002 to year 2007, cost per borrower is increasing.
cost per borrower Ratio-Indicator of productivity

Analysis of TMSS
Table 03
Year Profit Margin of TMSS 2002 -0.0126 2003 0.3614 2004 0.3632 2005 0.1942 2006 0.136 2007 0.1633

Profit Margin of TMSS from Year 2002 to Year 2007

Net Operating Income/Operating Income

Interpretation From year 2002 to year 2007 Profit Margin of TMSS is not performing satisfactory. After reaching the breakeven, TMSS gained 36.17% at year 2003 but profit margin continuously decline until year 2006.

0.4 0.3 0.2 0.1 0 -0.1 2002 2003 2004 2005 2006 2007 YEAR Profit Margin of TMSS

Profit Margin - Indicator of sustainability

Analysis of TMSS
Table 04
Gazipur/Ashulia -High Interest Rate Opinion of Members Ashulia (Zirabo) Gazipur-Mouchak Total High 4 9 13 Moderate 6 2 8

Interpretation Here, among 21 respondent 13 respondents was claiming that interest rate is high like other MFIs. 8 respondents claiming that interest rate is moderate to them.

Members Opinion regarding Interest Rate Charged by TMSS

10 8 Frequency 6 4 2 0 High Moderate Interest Rate Ashulia (Zirabo) Gazipur-Mouchak

Analysis of TMSS
Table 05 Demand of Loan
No. of Members of BADP Project

BADP Project Members' Demand regarding Loan Amount andFrequency

8 6 4 2 0 No Demand Fullfiled-Yes/No Yes 7 4

Demand Fulfilled No Yes

Total

11

Interpretation Here, among 11 respondent of BADP Project of TMSS 7 was claiming that demand is not fully satisfied as their purpose of loan is for business.

Demand for Loan

Analysis of TMSS
Table 06
Satisfaction Level of Members (Ashulia and Gazipur-Mouchak Branch) Frequency Highly Satisfied 1
5% 37% 29% Highly Satisfied Low Satisfied Moderately Satisfied Satisfied 29% Satisfaction Level of Members (Ashulia and Gazipur-Mouchak Branch) Frequency

Low Satisfied
Moderately Satisfied Satisfied Total

6
6 8 21

Interpretation

Here, among 21 respondents 37% was claiming that they are satisfied and only 5% is highly satisfied.

Analysis of TMSS
Table 07
Members Long towards TMSS Branch Stay with TMSSYes/No No Comme nt Probabl y stay Term Commitment GazipurMouchak
Members Long Term Commitment towards TMSS
8 7 6 No. of 5 Members of 4 TMSS 3 2 1 0 8 7

Ashulia (Zirabo)

3 2 1 0 No Probably Comment stay Yes Ashulia (Zirabo) Gazipur-Mouchak

2 1

3 0

Yes
Total

7
10

8
11

Stay with TMSS-Yes/No

Interpretation Here, most of the respondents are loyal and committed to TMSS.

Analysis Overall Performance of TMSS, and Comparison with ASA Table 08

Name ASA Country Bangladesh Rank 1 Scale 14 Efficiency 83 Risk 56 Return 40

ASAs overall performances

-lean structure,

-faster recruitment and costless informal training,

-simplification and standardization, -less over head cost and standard costs structure, -maximum utilizations of fund, -guided operation based on manual, -cost control steps, and -innovative management

Analysis of TMSS
Table 09

ASAs Microfinance Model - ASA Sustainable and Cost-effective Microfinance Model

This model is simple as well as cost-effective and best in the world Key Features of ASA's Innovative Management -Dynamic leadership; -Self-explanatory written working manual; -Decentralization and delegation of authority to the branch level officials;

-Participatory process in decision making;

-Specialization in microfinance and fast expansion policy; -Costless and faster innovative recruitment; -On-the-job training approach (Each one teach one policy); etc.

Assessing TMSS and ASAs Financial Performances Table 10

Name of MFIs No. of Upazilla (in 2008) TMSS 266 ASA 512 Name of MFIs No. of Villages (Year 2008)

Table 11
TMSS 18691 ASA 72204

No. of Upazilla (in 2008) 600

No. of Upazilla

No. of Villages (Year 2008)

No. of Village covered by ASA and TMSS

500 400 300 200 100 0 TMSS Name of MFIs ASA No. of Upazilla (in 2008)

80000 70000 60000 50000 40000 30000 20000 10000 0 TMSS Name of MFIs ASA

No. of Villages (Year 2008)

Interpretation Here, most of the no. of Upazillas and Villages are covered by ASA comparing with than that of TMSS.

Assessing TMSS and ASAs Financial Performances-Continued Table 12

Name of MFIs Branch Offices TMSS 533 ASA 3303 Name of MFIs Total Group

Table 13
TMSS 47399 ASA 271,976

No. of Branch Offices of TMSS and ASA (Year 2008)

3500 3000 2500 2000 1500 1000 500 0 TMSS Name of MFIs ASA
No. of Branch Offices

Total Group covered by TMSS and ASA (Year 2008)

300000
No. of Group

250000 200000 150000 100000 50000 0 TMSS Name of MFIs ASA Total Group

Branch Offices

Interpretation

Here, ASA covers 3303 branches which have total group of 271,976 those are larger than that of TMSS.

Assessing TMSS and ASAs Financial Performances-Continued Table 14

Name of MFIs Members TMSS 698474 ASA 7,276,677 Name of MFIs Borrowers TMSS 563396

Table 15
ASA 5,877,440

Members of MFIs (ASA and TMSS)

Borrowers of TMSS and ASA (Year 2008)

8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 TMSS Name of MFIs ASA
No. of Members (Year 2008)

7000000
No. of Borrowers

6000000 5000000 4000000 3000000 2000000 1000000 0 TMSS Name of MFIs ASA Borrowers

Members

Interpretation From the above analysis, comparing with ASA, TMSSs members and borrowers are low.

Assessing TMSS and ASAs Financial Performances-Continued Table 16

Year
ROA-TMSS ROA-ASA

2002
-0.0022 0.0905

2003
0.0784 0.1194

2004
0.0733 0.0957

2005
0.0343 0.1071

2006
0.0251 0.0936

2007
0.0323 0.0451

ROA Of TMSS a nd ASA

0.25 0.2 0.15

ROA

0.1 0.05 0 2002 -0.05 YE AR 2003 2004 2005 2006 2007

ROA -A SA ROA -TMSS

Interpretation Above diagram is going to explain that financial performance on return on assets is satisfactory for ASA, thus the organization become more profitable than that of TMSS.

Assessing TMSS and ASAs Financial Performances-Continued Table 17

Year 2002 2003 30.75% 29.92% 2004 28.02% 19.11% 2005 14.64% 19.66% 2006 12.02% 16.42% 2007 16.31% 7.06% (ROE) Return on EquityTMSS -0.90%

(ROE) Return on EquityASA 22.86%

70.00% 60.00%

ROE of TMSS and ASA

Percentage Value

50.00% 40.00% 30.00% 20.00% 10.00% 0.00% -10.00% 2002 2003 2004 2005 2006 2007 Ye a r

(ROE) Return on Equity-ASA (ROE) Return on Equity-TMSS

Interpretation Here ASAs ROE is also larger percentage than that of TMSS. TMSSs financial performance declined in the year 2006 but it is again improving from year 2007.

Assessing TMSS and ASAs Financial Performances-Continued Table 18

Year Loan outstanding (in million) of TMSS Loan outstanding (in million) of ASA 2002 9.316279 141.67 2003 12.76438 174.33 2004 15.33283 206.91 2005 24.75229 264.59 2006 29.42155 304.39 2007 38.55562 356.04

Loan Outstanding (in million US$) of TMSS and ASA

500

US $ (In Million)

400 300 200 100 0 2002 2003 2004 2005 2006 2007 YEAR

Loan outstanding (in million) of ASA Loan outstanding (in million) of TMSS

Interpretation Here loan outstanding is also rising for ASA and TMSSs loan outstanding is rising very slowly.

Assessing TMSS and ASAs Financial Performances-Continued Table 19

Year Portfolio at Risk of TMSS Portfolio at risk of ASA 2002 0.0229 0.0033 2003 0.017 0.0045 2004 0.0134 0.0069 2005 0.0094 0.0122 2006 0.011 0.0185 2007 0.0147 0.034

Portfolio of Risk of TMSS and ASA

0.06

Percentage Value

0.05 0.04 0.03 0.02 0.01 0 2002 2003 2004 2005 2006 2007 YEAR

Portfolio at risk

Portfolio at Risk of TMSS

Interpretation Here ASAs portfolio risk is comparatively larger than that of TMSS.

Assessing TMSS and ASAs Financial Performances-Continued Table 20

Year 2002 2003 1.1574 2.6462 2004 1.241 2.4456 2005 1.5403 2.7524 2006 1.5659 2.3816 2007 0.9876 1.7551 Operational Self Sufficiency (OSS) Ratio of TMSS 1.1951

Operational Self Sufficiency (OSS) Ratio of ASA 2.3086

Operating Self Sufficiency Ratio of TMSS and ASA

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2002 2003 2004 2005 2006 2007

Operational Self Sufficiency (OSS) Ratio of ASA Operational Self Sufficiency (OSS) Ratio of TMSS

Interpretation
Although TMSS able to increase its OSS in the year 2006, it is declined from year 2007. ASAs OSS is also declined but its OSS much larger for soundness of its sustainability. TMSS is improving loan loss provision over the year.

OSS - Indicator of sustainability

Assessing TMSS and ASAs Financial Performances-Continued Table 21

Year
Loan loss Provision of TMSS Loan loss Provision of ASA

2002
0.0042 0.0012

2003
0.0037 0.0007

2004
0.002 0.001

2005
0.0043 0.0014

2006
0.0043 0.0023

2007
0.0055 0.0027

Loan Loss Provision of TMSS and ASA

0.01

Percentage Value

0.008 0.006 0.004 0.002 0 2002 2003 2004 2005 2006 2007 YEAR

Loan loss Provision of ASA Loan loss Provision of TMSS

Interpretation
Both MFIs Loan Loss Provision (LLP) are improving.

LLP - Indicator of Financial sustainability

Assessing TMSS and ASAs Financial Performances-Continued Table 22

Year
Total equity/assets of TMSS Total equity/assets of ASA

2002
0.2562 0.3873

2003
0.2541 0.5083

2004
0.268 0.5773

2005
0.2109 0.5366

2006
0.2072 0.5521

2007
0.1913 0.6948

Total Equity/Asset of TMSS and ASA

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2002 2003 2004 2005 2006 2007 YEAR

Equity/Asset

Total equity/assets of TMSS Total equity/assets of ASA

Interpretation
ASAs equity/asset base is also larger than TMSS. ASAs performing assets also generate profit for the organization.

Assessing TMSS and ASAs Financial Performances-Continued Table 23

Year Borrowers per Staff member of TMSS 2002 125 2003 150 2004 164 2005 142 2006 139 2007 89

Borrowers per Staff member of TMSS 180 160 140 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 YEAR

Borrowers/Staff Members

Borrowers per Staff member of TMSS

Interpretation
Above diagram indicated that productivity of TMSS is decreasing over the year. Borrowers per Staff member - Indicator of Productivity

Assessing TMSS and ASAs Financial Performances-Continued Table 24

Year Saving Outstanding
Loan Outstanding

Year 2008 1083578632

Amount ( In BDT)

Year 2008 3500000000 3000000000 2500000000 2000000000 1500000000 1000000000 500000000 0 Saving Outstanding Loan Outstanding Savings and Loan Outstanding of TMSS Year 2008

2927920273

Interpretation In year 2008, loan outstanding is much better than savings of TMSS. Saving interest charge is only 6 % where as loan service charge is 12.5%. As default rate is approximately 02 to 04 % thats why risk is not highly associated with it.

Major Findings
Bangladesh Agribusiness Development Project (BADP) - 105 beneficiaries (or members). Only one female and rest of them are male. 64 members are borrower of BADP Project. Group based lending model flexible here. Members of BADP Project are satisfied regarding TMSS services and overall performances but their demand regarding loan is unfulfilled. If there is any negative profit arises then income from diversified field are distributed to cover the loss for short period of time. Most of the members in these regions are women and middle class family members. They were taken loan for house and business purposes. TMSS continuously improving its efficiency, although sometimes productivity is declined due to sudden circumstances like natural disaster, etc.

most of the offices are not well structured and decorated properly.

Major Findings - Continued

Employees satisfaction is somewhat questionable for TMSS regarding salaries and other facilities. Office is not filled with modern equipments and facilities. TMSS is also not very much concern regarding skilled employees. TMSS provide training facilities for its members for building awareness regarding business, education, health, etc. than that of other MFIs. In BADP project, on time realization is 98.72% and cumulative rate of recovery 99.69%. Not feasible to extend more branches as its financial structure and productivity decline in some years. Performing asset base is also much not strong to make TMSS more sustain in the long run. TMSS is also not willing to further collaboration with its foreign clients right now because of their sustainability issues whether they can perform well in the long run.

Recommendations
-Capacity gap can be minimized through policy development, proper utilization of donor fund and government fund, and searching for additional local fund; -To make commercially sustainable to the TMSS, its structural change along with Information Communication Technology (ICT) orientation must be needed;

-Continuous feed back from members must be upgraded to know the members satisfaction and commitment with the organization;
-A surplus of revenue must not be divided among founders and members of TMSS executives.

Recommendations- Continued

--TMSS must have to build a strong market linkage like subcontracting linkages between large enterprises ; Linkages provide enterprises with access to the combined economic, political and market advantages of larger businesses; --TMSS members also active voluntarily for developing TMSS to sustain in the long run; --TMSS also ensure good governance in all aspect into the organization; --Institutional constraints may arise directly or indirectly from a perceived lack of either government or private sector support for TMSS; --Whether employees or members are loyal and committed to the TMSS must be properly monitored. --TMSS must have to focus both male and female members for reducing poverty from the society

Recommendations- Continued
--Macro-level factors like -Enterprise regulation,

-Levels of inflation,
-Infrastructure development or changes in property legislation may be -More significant in influencing the income levels and vulnerability of poor people. In these cases, TMSS can create more stable income generation activities for the hard core poor and for poor people; --Upgrading is critical to TMSSs competitiveness and must be a continuous process. Access to knowledge and resources needed for upgrading often comes initially through vertical or horizontal linkages; --Small MFIs can follow the success policy of TMSS and minimizing threats and challenges.

Conclusion

Market is not clearly structured for MFIs. Sustainability is ensured when TMSS able to ensure soundness into its working environment, business policies and procedures, and transparency and able to bring changes and innovation along with the time.

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