1. A PRESENTATION BY: DAMINI GANDHAM BINDU UPADHYAY POLASH MUKERJEE
Bandhan is a microfinance institution which provides services in microfinance, micro-entrepreneurship, health, education, and disaster management to India's working poor. The organization focuses primarily on providing financial services to women, a critical step in breaking the cycle of poverty. It was founded by C.S.Ghosh in Bandan ranked second in the Forbes' list of the world's Top 50 MFIs. The first of its kind, Bandhan ranked third for its efficiency and impact.  With the founder’s leadership and focus on highly standardized systems, the organization has expanded with increasing efficiency.
POLASH MUKERJEE

2. Mission
To reduce economic and social poverty significantly by creating employment through providing cost effective , sustainable financial and other development services.

3. Vision
To be a world-class international microfinance institution serving 8 million clients by 2014
At present, they have crossed 2 million marks. They not only aim at development of their microfinance program, but they have a lot of other programs going on which are spreading in other states as well.

4. Objective
To work with those who are socially disadvantaged and economically exploited, especially women. Bandhan works for their social upliftment and emancipation by providing micro financing services.
Bandhan started off with its focus on women, later expanded

5. Values C Cost effective and simple R Respect for all
E Exemplary governance
A Accountability
T Transparency and integrity
E Effective team work and commitment
These are the values which they stand for. As we know, respect to intended beneficiaries is given a high priority.

6. Need for intervention (or in our words, JUSTIFICATION)
Poverty in West Bengal is wide spread (Estimated by the NGOs to be about 50%...!
Poor need both, savings as well as credit services due to lack of financial asset base.
Existing banking and non-banking sources are incapable of meeting the credit needs.
Present system is Collateral based.
Reliance on grant funds to support MF operations was difficult, loans were a better option.
The above mentioned are the reasons for choosing the geography and also the business model.

7. Need for MFI’s Credit has to be created for demand condition
Has worked as a mechanism to correct market imbalance
Has worked as a empowerment tool
Cheaper credit has allowed people to innovate and take risks
The need for microfinance institutions. West Bengal is one among the poorest states. Farmers, landless peasants are high in number.

8. Threats Winning confidence Dominance of traditional money-lenders
Overcoming people’s expectations
Threats
Thus begins the SWOT Analysis. Winning the confidence of the local people to come for the meetings, join the program is difficult. Money lenders manipulate the poor farmers by offering them lucrative offers, loans with hidden costs. People also expect different subsidies as offered by the government. The implementations require a great deal of patience to explain all the advantages and benefits to the rural hard core poor.

9. Weakness Model is complex, not easily replicable.
Microfinance targets only HCP, others left out.
By not replicable, we mean that it is not easy for us to understand the model and replicate it. It has a lot of intricate details and a lot has gone into the designing of the enterprise. The definition of hard core poor is explained further. It is limited to few. Thus it stands as a weakness where some people are left out though they would like to have that opportunity.

10. Opportunities
Plenty of scope to expand Development activities into other states
Move from HCP to poor.
As mentioned, the development programs are spreading to other states as well. There is a lot of scope. Microfinance program is active in 18 states whereas THP program is in 4 states. They also have the option of expanding their definition of HCP. They can move onto poor people as well.

11. Strengths High level of international recognition
Easy corpus formation due to credibility
Network spread in 18 states
The model – Sustainability
The progress speaks for itself
Bottom up approach to development
Expansion of choice availability to IB’s
Bandhan has won lot of international awards. This money is used in funding some of their programs.
Highly credible owing to their widespread network. The microfinance network in 18 states provides a platform to implement other programs as well. The model is sustainable. The progress of the organization stands as a testimony to the fact that they have put in lot of effort. The IBs are free to choose the mode of payment and also the installment details.

12. Geography
Bandhan is active in 18 states and union territories where it operates 1553 branches
It started off in West Bengal, soon spreading to the other states, focusing on the Eastern and North Eastern states where the poverty rates are high and there is lesser competition.

13. History
They have consistently tried to reduce the rates of interest and are moving swiftly toward their target of 8 million. They have also won numerous awards, such as
Pro Poor Innovation Challenge
Skoch Challenger Award
Skoch Financial Genius Award
Genius HR Excellence award

15. BANDHAN AT A GLANCE
This gives the timeline of the various development programs which are being implemented year by year.

16. TRANSACTION MODEL DONORS Awards MARKET Money Goods/ Services
Money/ Value
Returns
Loans/Training/Other Benefits
BANDHAN
I B
Installments
Employment
Services
The intended beneficiaries(rural poor) form enterprises and sustain themselves.
Villagers
TRANSACTION MODEL

17. Methodology Group formation individual lending approach.
A group of members is formed.
Clients have to attend the meetings for 2 successive weeks.
After 2 weeks they are entitled to receive loans.
The loans are disbursed individually and directly to members.
This slide explains the method of loan allotment after identifying the Hard core poor. This increases the trust and also enhances the bonding between the Bandhan and the beneficiaries.

18. Organizational structure
The structure has gradually evolved over years.

19. Intended Beneficiaries
Landless and asset less women.
Monthly income less than Rs 3500 in rural areas, less than Rs 5000 in small towns and less than Rs 7000 in big cities and metros.
Those who do not own more than 1/2 an acre of land or capital equivalent .
Land is leased to the landless people as will be seen in the case study. Higher bar for people in big cities due to higher cost of living and better pay than those in villages.

20. Why women..?
Women possess skill sets which can be used to generate livelihood.
They are better financial managers.
As seen in many other similar SEs, Bandhan focuses on women because of their skill set. Women tend to rate the development of the family as a whole very highly.

21. Direct Benefits
Dual objective: Poverty alleviation and women empowerment.
Increasing family income through women helps increase status of women in the family and society.
Confidence and decision making power increases.
This comes directly from the mission statement of the enterprise.

22. Indirect Benefits
Aids formation of Small scale / cottage industries such as :
Zari work
Embroidery
Animal Husbandry
Crafts work
Vegetable vending etc.
These industries create employment for the whole population.
The small scale industries have taken a back seat with industrialization. But the activities encouraged and aided by Bandhan are generally in this sector. The help create employment for many in the village.

23. Finances Income Source Percentage Service Charges/ Interest received
82.24%
Grant
11.02%
Admission fee
4.54%
Bank Interests
1.12%
Miscellaneous
1.09%
Service charges and interest received from clientele.

24. Expenditure
Percentage
Establishment and Administration
44.10%
Financial Costs
28.44%
Personnel costs
27.46%

25. Donors

26. Loan products Micro loans for health, enterprises and health
Interest: Reducing balance method
Loans are sanctioned to enable members to pursue income generating activities
Borrowers and their spouse are covered under insurance
They are not fined for late payments( no penalty)
Weekly / fortnightly/ monthly instalments based on choice
Loan granted without a collateral
The mode of interest calculation is different from the one calculated by landlords. People are encouraged to use loans for the purpose of income generating activities and thus they form their own enterprises.

27. These are the programs operational through microfinance
Pension Services
Remittance services: International money transfer services brought closer to the homes of those whose families are abroad. Tie up with Western Union in August 2010
These are the programs operational through microfinance
Remittance program acts as a source of income for Bandhan.

28. Targeting the Hard Core Poor
Grant based program
Objective- Uplift them to mainstream finance
Formation of village committees that act as guardians after the completion of the program
They have received grants from various associations ( International)
Those who benefit from this program are again into the system in the form of guides. This helps in motivating other people. They also gain access to microfinance programs and better loan amounts. All the programs analyze the development of the individuals and take them to various levels.

29. Bandhan Education Program
Non formal primary education program
Special focus on girl child
Greater access of primary education
Participation of local community in the system
5000+ Students across 8 districts, 145 villages
Value system- prohibition of violence
Parent teacher meetings
Local community has their say in it due to PRA. PUBLIC RURAL APPRAISAL.

30. Other programs Employing the unemployed program Bandhan health program
Bandhan livelihood program
Axis bank Bandhan holistic assistance

31. Arfa bibi Begging Indentified as HCP 4 Goats 11 Goats
3 Goats Chicken
Poultry farm
Land lease – Agrcultural cultivation
MF loan = 3000 INR
Arfa bibi
“My life changed entirely in 24 months….. I owe it all to Bandhan. ”
A CASE STUDY
Arfa Bibi and her family had been living in extreme poverty for many years. Her husband, a daily labourer, remained unemployed most of the year. Not knowing how to support her family, she decided to resort to begging. However, being selected as a THP beneficiary by Bandhan in Murshidabad was a boon for her. She was identified as HCP and selected.
She received 4 goats from Bandhan as her primary enterprise. Thereafter there has been no looking back, her asset basket has increased to 11 goats. Selling 3 of them, she used the sales proceeds to start a small poultry enterprise. 10chickens were reared into 15, and she earns 90Rs a week selling the excess eggs once she has fed her daughters. Selling 3 more goats, she lease some landed and cultivated cauliflower, reaping a profit of Later, she sold 4 more goats and leased some more land.
Recently, Arfa took her first Microfinance loan of 3000 Rs to expand her agricultural enterprise.

32. Future Plans (Prognosis)
Pan India coverage to reach out to the unreached.
Diversifying/modifying products according to the clients need.
Achieve the vision statement.
They could expand to cater to not just the HCP but other low classes as well.

33. Thank you