CASHPOR Micro Credit Social Performance and Impact Theme 1 - We operate in the poorest part of India, in terms of density of poverty, with 12 of our 15 Districts among the poorest in the country. 1

We are a Pioneer for the Poorest CASHPOR was the first MFI to employ the Grameen model in Uttar Pradesh (UP), endorsing credit-worthiness of the state’s poor, and triggering MFI operations in the region. At least 12 MFIs in Uttar Pradesh and 13 MFIs in Bihar, have started operations after CASHPOR 2

…have Operations in States with high Rural and BPL population % Rural Population % Below Poverty Line Bubble Size: Per-Capita Income Bihar has 85% of its population living in rural areas, nearly 80% in the case of UP as compared to71% for India. The percentage of people living below the poverty line is also much higher in the states of UP and BIHAR - 31% and 42% respectively as compared to 26% for India. Moreover within UP and BIHAR, the districts in Eastern UP and Western BIHAR are poorer and more backward that the rest of the State. The average per capita income in UP is half of that in India while its less than one third in the case of Bihar. CASHPOR was the first MFI to set up operations in the poverty stricken regions of eastern UP and Bihar CASHPOR has consciously chosen to work in a region that is not just poor as compared to the rest of the country, but poor when compared to even the rest of the state. 3

…focus on some of the Poorest Districts of India 13 out of 15 districts that CASHPOR is operating have rural population of 80% or more(7 districts have more than 90%), higher than the Indian average of 71%. Similarly when considering the percentage BPL population, 12 out of 15 districts have a higher percentage BPL population than the India average of 26%. All 4 districts in Bihar have higher BPL population than the State average. CASHPOR reached 11% of the 3.8 million BPL households in 15 districts in which it operates. Source: BPL Census 2002 and CASHPOR outreach data 4

…and target Outreach to financially excluded and backward regions with low levels of socio-economic development High degree of financial exclusion: Less than 4 scheduled commercial banks (SCB) branches per people in 4 districts, and between 4 and 5 in 9 districts. Indian average is around 6.7 branches (Source: RBI, 2002). Average MFI as well as SHG penetration in Uttar Pradesh and Bihar is very low (CMF Study, 2007). Human Development Index (HDI) of Bihar (0.367) and Uttar Pradesh (0.388) is less than the Indian average of (Source: HDI data for 2001) Infant mortality: More than 50 per 1000 live births in 13 districts. (Source: Census 2001 data) All districts in UP except Varanasi have less than 40% households with electricity connection. The districts in Bihar have less than 20% households with electricity connection. (Source: Census 2001 data) 5