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An installment of Re.1 in ESAF Microfinance gives Rs.3.19 in Social Investments: says study

ESAF released a report on Social Return on Investment (SROI) of its Income Generating Loan (IGL) Product in Kerala, the first of its kind initiative launched by an MFI in India. The project, started in October 2011, was facilitated by Opportunity International, Australia. The primary objective of this analysis was to understand the degree of impact ESAF Microfinance was able to create on various stakeholders involved. “Given the current scenario the sector faces, it is paramount to clearly communicate the potential social impact to key audiences involved in decision making” says K. Paul Thomas, Managing Director, ESAF Microfinance. 

Smiley face

A diagram showing client journey with ESAF

A list of stakeholders, covering clients and their family, SHG Federation, loan officers and management, were identified, from which client perspective was analyzed in ‘Client Journey’, through different loan cycles. In consultation with all the stakeholders the major analysis was conducted on the impact of income generating loan products on the lives of the clients.  Besides, an analysis of investor social returns showed that an investment of Rs. 4,900 Mn, including equity investment and interest paid by Clients, could potentially create Rs. 15, 610.3 Mn of present value, resulting in an indicative SROI ratio of 3.19:1. That is, for the equivalent of every Rs.1 invested in ESAF Microfinance, Rs. 3.19 is returned in social value. The report concluded that the Organization is well positioned to continue implementing an SPM strategy given its strong commitment to the social mission and its competitive edge over the other MFIs on the topic.

ESAF organizes BDS Consultation meet

K. Paul Thomas delivering his meesage

ESAF organized a BDS Consultation meet for developing a sustainable integrated BDS model for ESAF Microfinance on April 17, 2012 at Hotel Hamara, Thrissur. K. Paul Thomas, Managing Director, ESAF Microfinance presided over the function. Vasumathi, Asst. Vice President, BASIX Krishi Samruddhi Ltd, Hyderabad was the Chief Guest for the program. The objective of the meeting was to chalk out a blueprint for a feasible business model integrating all Business development entities of ESAF- ESAF Sawasraya Producers Company Ltd., SHG Federation, Rhema Dairy and ESAF Retail. 

K. Paul Thomas during his presidential address opined that a fee-based model would help the clients understand the value of microfinance and added that emphasis should be given on the quality of service. He urged the team members to take adequate steps to implement the new model without much delay. Vasumati during her key note address agreed with the views of the Managing Director and explained the business model for BASIX Krishi Samruddhi. The outcome of the ESAF-ILO project was also presented and discussed at the Meet. Benita Sara Mathew, Manager, ESAF- ILO project made the presentation and highlighted some success stories emerged from the 'treatment' clients belonged to the states of Kerala, Nagpur and Tamil Nadu. ESAF Microfinance was one among the two MFIs selected by International Labour Organization (ILO) to undertake a global action research project called Microfinance for Decent Work.

Some other topics presented during the meeting were - K.V. Christudas, General Manager, Dairy and Energy Products presented a paper on the topic Microfinance and Dairy, Dr. Alwyn, Consultant-Dairy, explained on the inclusion of poultry rearing into BDS model. Joby C.O., CFO, dwelt on linking agricultural products with markets, Senthil, Deputy General Manager, threw light on new initiatives and market opportunities for new products, Sunil Menon, COO, ESAF Retail briefed on how ESAF Retail could be integrated to BDS, Ambika Soman, Manager, ESAF SHG Federation, highlighted on the role of SHG Federation in integrated BDS and Jojy Koshy Varghese, COO, ESPCL, presented a draft paper on integrated BDS model for ESAF Microfinance.

ESAF - NABARD organizes Fair Trade exhibition

ESAF in association with NABARD organized a Fair Trade Exhibition at Pandisamooham hall in Thrissur from April 20-22, 2012. International Labour Organization and Cherpu Carpenters’ Society also supported the program. Sunil Kumar, MLA, Cherpu inaugurated the program.

Elephants carved in wood were the anchor display that attracted the crowds apart from other handicraft products and organic agriculture products. Separate stalls were installed for handicraft products imported from the states of Tamil Nadu, Maharashtra, Jharkhand and Andhra Pradesh. The ultimate objective of the Fair Trade event was to create a venue for the sangam members to display and market their products. Rema Devi and Kripa, Cine Artists, performed the first sale of the products. K. Paul Thomas, Managing Director, ESAF Microfinance,  P.T. Usha, AGM, NABARD, Thrissur District, Jacob Samuel, Director Projects, ESAF and Jojy Koshy Varghese, COO, ESAF Swasraya Producers Company  also spoke on the occasion.

The cherpu exhibition in progress

Actress Kripa and Ramadevi at the function

ESAF releases NPS manual in Hindi

Sandeep Jadhav, second from left, releasing the Hindi version of the NPS manual

ESAF Microfinance Central Zone released the Hindi version of the NPS manual on April 21, 2012. Sandeep Jadhav, Deputy Mayor, Nagpur Municipal Corporation released the manual. Almost 2500 members participated in the function held at Nagpur. During his inaugural address Sandeep Jadhav encouraged the women to utilize the opportunity for a secure future.  The best SHG awards to 6 SHGs under the Sadar branch were also distributed on the occasion. George Paulose, Senior Manager, NPS, shared the details of the NPS activities being implemented by ESAF in various states. ESAF is one of the few organizations hand picked by the Government of India to implement its prestigious social oriented program National Pension Scheme. George K. John, Zonal Head, Central Zone - ESAF Microfinance, George Paulose, Sr. Manager (NPS), Padmakumar K., Company Secretary, Jijo Kuriappan ,AGM Operations, Sandeep Waghmare, Assistant Manager, Anil P.C. Assistant Manager, Mercy Mathew, Branch Manager, SHG Cluster presidents and ESAF staff were also present on the occasion.

ESAF opens New branches

In the month of April, ESAF opened new branches at Perumbadappu in Vadanapilly area and Anchal in Kollam area. The new branches (92nd and 93rd) in the Kerala zone were opened on April 04, 2012.

FACT FILE

As on 31st March 2012

Outreach in Rs(Mn) in US $(Mn)
Group Lending    
Districts 34  
Branches  148  
Centers  26912  
Members  457193  
Active Borrowers  339434  
Current portfolio Rs   2916.62             57.33
Own portfolio Rs  2317.84             45.56
Managed portfolio Rs  598.78             11.77
Repayment Rate     
PAR> 30 days    
Portfolio Distribution    
Income Generation Loan Rs     2,243.91             44.11
Income Generation Loan(2 Year) Rs        565.39             11.11
General Loan Rs           96.67              1.90
VVY Loan Rs             9.63              0.19
Housing Loan Rs            1.02              0.02
Personnel Strength    
Loan Officers 858  
Total Staff 1462  
During the Month    
New Clients         20,697  
Amt. Disbursed Rs         892.84             17.55
Note:- 1$=Rs.49.44    

Copyright with ESAF Microfinance and Investments Pvt. Ltd.  Disclaimer:-The information is just indicative, please check with the Company for detailed info.