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| Introduction: |
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AJIWIKA is a Sec 25 Company working as first Micro-finance Company of Jharkhand State. At present AJIWIKA is involved in micro Credit and insurance for its target clients. The promoter of AJIWIKA is NEEDS which a holding group of three NGOs. NEEDS group is a professionally managed committed NGO group, active in community and NGO capacity building and issue-based interventions and networking.
NEEDS being a " Social Entrepreneur " organization, has felt time and again to form an institution to support its livelihood enhancement mission through improving the access of credit by the population difficult to reach. This gave birth to new organization called AJIWIKA for providing micro-finance support to the clients. |
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| Background of AJIWIKA: |
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AJIWIKA has been incubated with the support of SIDBI by providing capacity building and hand-holding support through Basix.
The first landmark decision within NEEDS Board was to request Basix for CB support was in February '04. After that the MF team was created and has been provided with hand-holding support by Basix. From December '05 we started lending to our SHG groups. The portfolio was still with Basix. It was May 25 th when we took a loan of 1 million from Basix. At this stage, when we were novice in mf field FWWB (I) came to support us. On 19 th July '05 they sanctioned the first loan to us. The CB support provided by FWWB (I) was very helpful for us and worth mentioning. The same year we became member of Sa-Dhan.
AJIWIKA has a dream to become NBFC by mid 2009. We are striving for this. As an intermediary arrangement we got Sec 25 company registration on 4 th July 2006. |
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| Vision: |
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"Create impact on poverty by increasing access to livelihood opportunities by marginalized" |
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Mission: |
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"Reach un reached with financial and technical service packages suitable to intended client profile constantly and sustainably" |
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[Illustration: un-reached are population that does not have access to credit facilities or services to meet their various need that may be productive or social, which ultimately impacts on their poverty and living standards] |
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Objective: |
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To promote development work by providing technical assistance, managerial skill, access to financial services to the people un-reached by the formal financial system, for livelihood opportunity enhancement and poverty eradication; to undertake different activities for rural and urban slum development to improve the socio- economic life of the poor and downtrodden; to provide assistance to individuals, institutions, corporate body, public or local authorities for rural development and employment generation activities. |
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Geographical area of AJIWIKA |
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AJIWIKAs' concern lies with all disadvantages areas irrespective of geographical and physical barriers. Currently our activities /interventions are confirmed mainly to the vulnerable pockets of Jharkhand. In future these initial target areas will be growth centres for the promotion of financial initiatives in the neighbouring disadvantaged pockets.
Presently Our area of operation is Deoghar, Dumka, Jamtara, Dhanbad, Bokaro, Ramgarh, Ranchi, Hazaribag & Koderma district in Jharkhand and Banka in Bihar. In Future we proposed to work in other districts of Jharkhand & Bihar. |
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Micro-finance methodology: |
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The main focus of AJIWIKA is on providing access to finance, for people, poor and ultra-poor, who need reliable financing so that their ideas can be brought together with assets to generate long-run sustainable livelihoods. Our main clients are women. At present we are extending our services through both, SHGs and JLGs,. No of SHGs are limited to the livelihood promotion groups of our parent organisation NEEDS and PRADAN. Considering the fact that the pace of growth which MF industry demands is not compatible with SHGs promoted by NEEDS at its own pace, therefore we started doing our major financing through JLGs. |
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Products and services: |
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Credit Product: |
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General Purpose loans to SHGs
Income Generating loan to women JLG
Srawani Mela business loan
Loan to ULTRA POOR clients
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Insurance Product: |
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We are doing loan linked insurance for our clients having corporate linkages with AVIVA
Our Health Insurance product has been designed with the help of Healing Field Foundation and supported by HDFC ERGO. |
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Remittances: |
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This product is being designed with the help of CMFR. |
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Organizational Structure: |
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Governance |
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Ajiwika is governed by its Board of Director. At present we have 8 members board of Directors. Two of them are fulltime active working members, three of EIGHT members are having more then 20 years experience in Development field. Two of the direcors are having vast experience in Micro credit field, working as ED of RGVN and Program Mangers. One is Chartered accountant; Two has experience working at top level Bankers. |
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Management |
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Secretary of the board is Managing Director of AJIWIKA, as per the provisions of the company. MD is the overall in-charge of the management. Manager Operation is looking after the whole financial operation, Manager Finance is to monitor; plan and projectise and manage the cash flow and financial issues of our organization. The crucial position is Manager HR who continuously capacitate and energies the whole team apart from involved in recruiting, training and placement of team as per the need of the company. |
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Financial Institutions: |
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SIDBI
BASIX
Fwwb (I)
ICICI Bank
HDFC Bank
CITI Bank
Axis Bank
Indian Bank
DCBL
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Our Partners: |
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United Prosperity
ABN Amro Foundatio
MicroSave
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Support agencies: |
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GE Resurch
CMFR
Healing Field Foundation
M2i Consultants |
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MIS, accounting system and internal control systems
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Accounts and MIS are maintained in software designed by our software consultants, Force Ten Technology. The same is being improved by GE Research; Bangalore team. It gives details about -Ageing analysis of over due and demand, day wise demand chart, loan outstanding, employees and village performance, monthly progress, Loan application pending, interest recovery as scheduled, Performance based incentives, intimation letter, over due notice & follow-ups
We are having a full-time internal Audit team, who is continuously doing financial and system audit for the Company and directly reports the management. |
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Historical performance: |
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| Indicators |
2005-06 |
2006-07 |
2007-08 |
| Active borrowers |
627 |
1,888 |
4,674 |
| % Growth in active borrowers |
NA |
201% |
86% |
| Number of branches |
1 |
4 |
9 |
| Number of districts |
1 |
3 |
7 |
| Total staff involved in microfinance |
06 |
24 |
50 |
| Cumulative amount of loan disbursements |
2,774,700 |
20,030,700 |
4,85,46,200 |
| Portfolio outstanding (Rs) |
1,448,826 |
16,523,397 |
2,62,69,148 |
| % growth in portfolio outstanding |
NA |
1,040% |
59% |
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Previous years (April 2007 - March 2008) |
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| Ratio |
2007-08 |
Definition |
| Yield on Portfolio (YoP) |
25.17% |
Interest and fees incomes on loans to average portfolio |
| Other income on portfolio |
1.9% |
Other income to average portfolio |
| Total Income to Portfolio (TIP) |
27.37% |
Total income to average portfolio |
| Financial Expense Ratio (FER) |
7.93% |
Interest expenses on funding liabilities to average portfolio |
| Operating Expense Ratio (OER) |
17.7% |
Personnel and other administrative expenses to average portfolio |
| Loan Loss Provisioning Ratio (LLPR) |
0.34% |
Loan loss provisions to average portfolio |
| Financial Operations Expense Ratio (FOER) |
25.96% |
FER+OER+LLPR |
| Return on portfolio |
1.41 |
TIP-FOER |
| Portfolio at risk (>30 days) |
0.97% |
Portfolio having overdue greater than 30 days to total portfolio |
| Capital Adequacy Ratio |
9.44% |
Networth to risk-weighted assets |
| Active borrowers |
4,674 |
Number of clients having outstanding balance on their loans |
| Loan Portfolio (Rs) |
2,62,69,148 |
Outstanding balance of all the loans as on 31 March 2007 |
| APR |
28.57 |
Equivalent reducing balance interest rate including all charges |
| Yield to APR |
88.09 |
Yield to APR |
| Field staff |
30 |
Number of staff working in the field (credit officers ) |
| Active borrowers per field staff |
156 |
Active borrowers to field staff |
| Portfolio per field staff |
8,75,638.27 |
Loan portfolio to number of field staff |
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Performance 2008-09 in comparison to years : |
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| Sl No. |
Indicator |
2005-06 |
2006-07 |
2007-08 |
2008-09 |
| 01 |
Active Clients |
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10,753 |
| 02 |
%age growth in clients |
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43.13% |
| 03 |
No. of Branches |
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17 |
| 04 |
No. of Districts |
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10 |
| 05 |
Total Staffs in MF |
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102 |
| 06 |
Total Amount of Loan Disbursed |
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7,79,02,764 |
| 07 |
Portfolio Outstanding |
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7,05,33,356 |
| 08 |
%age Growth in Portfolio OS |
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268.36% |
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Previous Years (April 2008 – March 2009) |
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| Personnel Cost Ratio
(PCR) |
6.15 |
| Administrative Cost
Ratio (ACR) |
3.52 |
| Total ACR
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9.97 |
| Financial Cost Ratio
(FCR) |
14.20 |
| Operating Cost ratio
(OCR) |
24.20 |
| Yield On Portfolio
(YOP) |
20.46 |
| Yield on APR |
53.84 |
| Productivity Ratio |
182.25 |
| Active Client / Members
Ratio |
78.51 |
| Capital Adequacy
Ratio (CAR) |
2.32 |
| Debt Service Coverage
Ratio (DSCR) |
117.49 |
| Operational Self
Sufficiency (OSS) |
115.49 |
| Portfolio At Risk
(> 30 days) |
7.070 |
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Our Products |
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| Name of the product |
Services |
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| SHG with Cash Security |
Interest - 15% flat, Cash Security - 10% LPF - 3% |
| SHG without Cash Security - ULTRA POOR |
Interest - 18% on diminishing balance Cash Security - 10% By NEEDS LPF - 2% |
| Women JLG |
Interest - 15% Flat Cash Security - 10% LPF - 3% |
| Srawani-mela/ Festival Season Loan |
Interest - 15% flat, Cash Security - 10% LPF - 3% |
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| Name of the product |
Services |
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| Loan Linked Insurance |
Linked with AVIVA Life |
| Rain fall based crop Insurance |
With ICICI Lombard for 3000/- with a premium of 260/- |
| Health Insurance |
With HDFC ERGO
Premium Rs 360/- per annum for life and health Insurance
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| Cattle Insurance |
With ICICI Lombard
Premium 4% per annum
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