Annual Report
2012/13
Annual Report
2012/13
RMDC
for Safe, Sensible &
Sustainable Microfinance
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
The Partner
for Safe, Sensible &
Sustainable Microfinance
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Microfinance
Development Banks
Fingos
Cooperative Societies
Vision
Emerge as a financially viable, operationally
sustainable and professionally efficient
institute for wholesale lending to
microfinance institutions in Nepal.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Mission
Reaching out to the largest number of the poor and
disadvantaged households with appropriate microfinance
services to enable them to realize their untapped
potentials of development through the partner MFIs.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Goal
Serving over 1.5 million poor families across
the country with quality microfinance
services through 150 partner organizations
by the end of 2015.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Promoter Shareholders and
Shareholding Pattern
As of July 15, 2013
Amount (Rs.)
% of Total
Share Capital
Nepal Rastra Bank
21,045,000
5.78%
2
Nepal Investment Bank Ltd.
33,810,000
9.29%
3
Nabil Bank Ltd.
50,720,000
13.93%
4
Nepal Bank Ltd.
29,355,000
8.07%
5
Standard Chartered Bank Nepal Ltd.
52,190,000
14.34%
6
Nepal SBI Bank Ltd.
18,895,000
5.19%
7
Himalayan Bank Ltd.
48,000,000
13.19%
8
Nepal Credit & Commerce Bank Ltd.
7,075,000
1.94%
9
Rastriya Banijya Bank Ltd.
8,295,000
2.28%
10
Bank of Kathmandu Ltd.
7,075,000
1.94%
11
Nepal Bangladesh Bank Ltd.
4,531,000
1.24%
12
Everest Bank Ltd.
3,120,000
0.86%
13
Nepal Industrial & Commercial Bank Ltd.
25,231,000
6.93%
14
Lumbini Bank Ltd.
1,534,000
0.42%
15
Purbanchal Grameen Bikas Bank Ltd.
800,000
0.22%
16
Madhyamanchal Grameen Bikas Bank Ltd.
1,000,000
0.27%
17
Paschimanchal Grameen Bikas Bank Ltd.
2,900,000
0.80%
18
Madhyapaschimanchal Grameen Bikas Bank Ltd.
1,154,000
0.32%
19
Sudurpaschimanchal Grameen Bikas Bank Ltd.
800,000
0.22%
20
Deposit Insurance & Credit Guarantee Corp.
1,370,000
0.38%
21
Nirdhan Utthan Bank Ltd.
1,100,000
0.30%
22
Siddhartha Bank Ltd
14,000,000
3.85%
23
International Finance Corporation
30,000,000
8.24%
364,000,000
100.00%
S.N.
Name of Shareholders
1
Total
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Contents
A.
Message from the Chairperson
i
B.
CEO’s Reflections
iii
1.
Introduction
01
2.
Corporate Governance
03
General Body
03
Board of Directors
03
Board Members’ Profile
05
Audit Committee
07
Risk Management Committee
07
Management
07
Organization Structure
08
3.
Report of the Board of Directors
09
4.
Auditor’s Report and Financial Statements
15
Auditor’s Report
16
Balance Sheet
17
Profit & Loss Account
18
Profit & Loss Appropriation Account
19
Cash Flow Statement
20
Wholesale Lending to Microfinance Institutions
21
Progress of Lending Program
21
Loan Products
22
Process of Lending to MFIs
25
Salient Features of Partner Organizations’ Credit Program
27
5.
6.
7.
8.
Promotion and Capacity Building of Microfinance Institutions
31
Promotion of New MFIs
31
Capacity Building of MFI Officials and Staff
32
Onsite Technical Assistances to MFIs
41
Capacity Building of MFI Clients
41
Growth and Performance of Partner Organizations
43
Outreach
Loan Portfolio
Members’ Savings
Operational Self Sufficiency
Staff Productivity
44
45
46
48
48
Monitoring and Follow-up of Partner MFIs
51
Importance of monitoring
51
51
52
52
Monitoring Approach of RMDC
Risk based monitoring and supervision framework
Impact of RMDC’s Monitoring, Supervision and Follow-up system
9.
Projects under Implementation
53
Community Irrigation Project (CIP)
YUWAccess Project
53
54
10.
International Cooperation and Exchange Program
55
11.
Challenges of Microfinance Sector in Nepal
61
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Annexes
Annex I
Institutions which Received Training Supports from RMDC
65
Annex II
Annual Training Progress of RMDC
73
Annex III
RMDC Loan Portfolio with POs
75
Annex IV
Year-wise Loan Portfolio of RMDC
80
Annex V
Status of Partner Organizations
81
Annex VI
Staff Biographies
85
Box 1
RMDC’s Progress at a Glance
02
Box 2
RMDC’s Eligibility Criteria for Lending
25
Box 3
RMDC’s Parameters of MFI Appraisal for Lending
26
Box 4
Development Impacts of Microfinance at Client Level
27
Box 5
RMDC’s Sequential Steps for Promotion of MFIs
31
Box 6
Resolution of Revisiting Nepal Microfinance Vision 2015
34
Box 7
Way Forward of Annual Review Workshops
38
Box 8
Performance of RMDC’s Partner Organizations at a Glance
49
Figure 1
Growth of Annual Loan Portfolio of RMDC
22
Figure 2
Annual Progress of MFI Staff Training
32
Figure 3
Annual Progress of MFI Client Training
41
Figure 4
Composition of RMDC’s Partner Organizations
43
Figure 5
Growth in Number of RMDC’s POs
44
Figure 6
Growth of Members & Borrowers POs
44
Figure 7
Growth of Outstanding Loan of the POs
45
Figure 8
Trend of Outstanding Loan per Borrower
46
Figure 9
Trend of Clients Savings of RMDC’s POs
46
Figure 10
Trend of Savings Balance per Member
47
Figure 11
Trend of Savings-to-Loan Outstanding Ratio in POs
47
Figure 12
Trend of Operational Self Sufficiency (OSS) of POs
48
Figure 13
Trend of Staff Productivity of POs
48
Figure 14
Trend of Field Staff Productivity of POs
48
Number of Staffs in Different Fiscal Years
07
Boxes
Figures
Tables
Table 1
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Abbreviations
ADB
Asian Development Bank
ADBN
Agricultural Development Bank of Nepal
BoD
Board of Directors
CB
Commercial Bank
CIP
Community Irrigation Project
CLDP
Community Livestock Development Project
CSD
Centre for Self-help Development
DB
Development Bank
FIA
The Financial Intermediary Act, 1998
FINGO
Financial Intermediary NGOs
FNCSI
Federation of Nepal Cottage & Small Industries
FY
Fiscal Year
GBB
Grameen Bikas Bank
GBR
Grameen Bank Replicator
GoN
Government of Nepal
IBP
Intensive Banking Program
JFPR
Japanese Fund for Poverty Reduction
MCPW
Micro Credit Project for Women
MFB
Microfinance Bank
MFDB
Microfinance Development Bank
MF
Microfinance
MFI
Microfinance Institution
MoF
Ministry of Finance
NBL
Nepal Bank Ltd.
NGO
Non-Government Organization
NPC
National Planning Commission
NRB
Nepal Rastra Bank
NUBL
Nirdhan Utthan Bank Ltd.
PCRW
Production Credit for Rural Women
PGT
Pre-Group Training
POs
Partner Organizations
PRA
Participatory Rural Appraisal
PWR
Participatory Wealth Ranking
RBB
Rastriya Banijya Bank Ltd.
RGBB
Regional Grameen Bikas Bank
RMDC
Rural Microfinance Development Centre Ltd.
RMP
Rural Microfinance Project
SBB
Swabalamban Bikas Bank
SCC
Savings and Credit Cooperative
SFCL
Small Farmer Cooperative Limited
SFDP
Small Farmers Development Program
SKBBL
Sana Kisan Bikas Bank Limited
TVETPs
Technical and Vocational Education Training Providers
VDC
Village Development Committee
WDD
Women Development Department
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Message from
the Chairperson
Microfinance sector has grown as an industry in the country
access to microfinance services. Although Institutional
with a significant increase in number of microfinance
micro credit started in the early 1970s, rapid growth
institutions serving the poor and deprived families since
of institutions and expansions of outreach took place
2000. The power of microfinance is now well recognized
in the decade of 2000s. However with the increased
as an instrument of the socio-economic enhancement of
number of institutions, distortions also are surfaced in
the poor and deprived specially the women. It has been
microfinance practices. Mission drift has been observed
contributing to the poor family in generation of income,
as a common phenomenon in last few years due to
raising of living conditions, impartation of education
unhealthy competition among MFIs. It is now a high time
to their children, improving housing condition, supply
for MFIs to self evaluate their performance rationally and
of nutritious food and better clothing for their families.
check whether they are geared towards achieving their
Microfinance institutions are becoming more professional
vision and mission. They should streamline their efforts to
and equipped with trained human resources required to
give right shape to their microfinance programs and direct
implement their programs successfully. MFIs are developing
them towards achieving social goals as well. Microfinance
various products for the social well being and sustainable
institutions need to focus on responsible microfinance and
development of the poor.
create visible impact in the lives of the poor and deprived.
Microfinance is a socio-economic endeavor for uplifting
the living standard of the poor and enabling them
gradually to get out of poverty. Rate of poverty and
depth of the poverty along with the density of population
structure varied in different parts of the country according
High profit in their financial statements alone will not be
enough for the sustainability of their microfinance business.
They should make sure that clients also attain sustainability
and see that each one of them are moving upwards both
economically and socially.
to the NLSSIII report. However due to the absence of
I extend sincere thanks to all the concerned for their
capable institutions to provide required financial services
efforts and contribution to the growth of the microfinance
to the poor people living in remote and difficult areas,
industry in the country.
hills and mountains are still deprived of or having less
Ashoke SJB Rana
Chairperson
The Partner for Safe, Sensible & Sustainable Microfinance
i
Annual Report
2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
CEO’s
Reflections
In the last one and a half decades, RMDC has successfully
households for whom they have actually been established.
laid the foundations of a sustainable microfinance sector in
Hence, it is high time for MFIs and the stakeholders to give
Nepal by promoting and developing a significant number
more attention towards the social performance as well in
of financially sound institutional micro-lenders across the
order to create a desirable impact on the clients, the poor
country. When RMDC began its journey in 1999, there were
households. RMDC, in its capacity, has been trying to sensitize
very few microfinance institutions (MFIs) in the country through
its partner MFIs and their clients on the consequences of these
which it could reach out to the poor with quality microfinance
issues so that the sector could move ahead on a right track.
service. Most of the current large MFIs were in the form of small
social organizations and microfinance was a completely new
domain for them. Recognizing this gap, RMDC had to give its
utmost focus on promotion and development of quality MFIs
in its beginning years. And RMDC still continues this activity
to improve capacities of the existing MFIs and to promote
institutions in virgin areas. During the period, RMDC consistently
worked on developing human and institutional capacities of
its partner organizations, thereby enabling them to transform
into financially viable microfinance organizations.
Nepal, as in most other low income countries, has made a
considerable success in expanding scale of microfinance
outreach. Most of the MFIs seem to have been doing financially
well at least for short-term. As they focus on enlarging their
own market shares and volume of their businesses, unhealthy
competition among the MFIs has been widespread especially
in the easy-to-access areas; as a consequence multiplelending to clients has been prevalent in those areas which
might lead to over-indebtedness among the clients over a
period of time. MFIs still seem to be quite serious about the issue
and show their concern in the growth of their clients, the poor
As a wholesale lender, RMDC makes sure that its partner
organizations deliver the funds to the clients properly and
the clients have utilized the loans in productive activities.
Till the end of FY 2012/13, RMDC has cumulatively disbursed
loans amounting to Rs. 8.85bn to 136 MFIs which altogether
now serve around 1.5 million families living in 67 districts in the
country. And RMDC has been able to maintain its loan quality
excellent with a hundred percent loan recovery from the very
beginning. About 18,847 staff & officials and 6,47,177 clients
of MFIs have also been trained with financial and technical
supports of RMDC.
I am grateful to the Government of Nepal, the Nepal Rastra
Bank, the Board of Directors of RMDC, the Asian Development
Bank and other agencies for their generous cooperation and
supports. I am also thankful to our partner organizations for
their hard work and dedicated effort in delivering quality
microfinance services to the poor. Finally, I thank all staff for
their tireless efforts to achieve the goals and objectives of the
organization.
Shankar Man Shrestha
Chief Executive Officer
The Partner for Safe, Sensible & Sustainable Microfinance
iii
Annual Report
2012/13
Introduction
The Rural Microfinance Development Centre
of RMDC is wholesale lending to MFIs. Besides, it
Ltd. (RMDC) is a wholesale lending organization
has been extending institutional capacity building
in Nepal. It was registered on 30 October 1998
supports to MFIs. Currently, RMDC is one of the
under the then ‘Company Act, 1996’ as a public
prominent wholesale lending organizations for
limited company with the mandate to operate
MFIs in the country. Its partners’ outreach shares
as a wholesale lending organization within the
nearly 70% of the entire microfinance industry’s
framework of the then ‘Development Bank Act,
business in the country.
1995’. RMDC was reregistered under the current
unified banking law, the ‘Bank and Financial
Institution Act (BAFIA), 2006’ as a class ‘D’
financial institution. RMDC commenced its lending
operation from January 2000. The main function
The main objective of RMDC is to improve the
socio-economic conditions of the poor, the
landless and the assetless through increasing their
access to institutional microfinance services for
productive undertakings and self-employments.
The specific objectives of RMDC are:
•
to provide wholesale funds to
microfinance
institutions
(MFIs)
for
on-lending to the poor, particularly
the women of those families, for
undertaking productive activities;
•
to
build
and
strengthen
institutional capacities of its partner
MFIs as well as potential institutions
willing
to
implement
microfinance
program;
•
to
promote
financially
viable
and sustainable MFIs by providing
adequate
wholesale
funds
necessary
technical
supports
the
existing
microfinance
as
well
NGOs and cooperatives;
01
The Partner for Safe, Sensible & Sustainable Microfinance
as
institutions
and
to
potential
including
Annual Report
2012/13
•
•
to support or undertake studies and research
works in products and services, impact,
Box 1: RMDC’s Progress at a Glance
delivery and recovery system, innovation etc;
As of July 15, 2013
to assist POs and potential POs in improving
organizational capacities and occupational
Districts Covered
67
skills of their clients; and
Partner Organizations
136
to play the role of a financial intermediary to
Loan Approved (NRs.)
10.20 billion
Loan Disbursed (NRs.)
8.85 billion
Loan Recovered (NRs.)
6.52 billion
Outstanding Loan (NRs.)
2.33 billion
to around 1.5 million poor families through its 136
Non Performing Assets (NRs.)
Nil
partner organizations (POs).
Repayment Rate
100%
Loan Loss Reserve Ratio
4.0%
prospective institutions and identified over 300
Operational Self Sufficiency
277.8%
institutions
Yield on Loan Portfolio
8.2%
Return on Equity
12.9%
Return on Assets
3.5%
resources of the institutions willing to commence
Capital Adequacy
33.1%
microfinance operation. It organized various need-
No. of MFI's staffs trained
18,847
based capacity building programs, such as on-
No. of MFI's clients trained
647,177
No. of Institutions receiving training
319
•
channelize international and national resources
to the poor (the ultimate beneficiaries).
RMDC has completed fifteen years of its operation
and has been providing microfinance services
RMDC
has
been
(NGOs
and
continuously
exploring
Cooperatives)
having
potentials of implementing microfinance program.
RMDC made all out efforts to build and strengthen
institutional capacities. It is also training human
the-job training, on-site technical assistance, classroom training on different subjects, study visits and
interactive workshops.
RMDC had already provided training to 18,847
staffs and officials, and 647,177 clients of MFIs, by
the end of fiscal year 2012/13. In a decade or
more, over hundred MFIs have developed their
capacities required to operate their microfinance
programs in a sustainable manner. As a natural process
microfinance program is moving towards maturity. People are
now aware of the importance of microfinance programs and as
a viable financial program in the country capable of serving the
needs of the large masses of the poor and deprived.
The Partner for Safe, Sensible & Sustainable Microfinance
02
Annual Report
2012/13
Corporate Governance
03
General Body
nine directors. Among the nine directors - one
In the Corporate structure of RMDC, General
represent the shareholder commercial banks,
Body is the supreme authority. It comprises all
two represents the public shareholders (elected
the promoter banks and financial institutions and
by AGM) and one independent professional. The
public shareholders. Through Annual General
Chairperson of the Board is elected from among
Meeting, the General Body gives overall policy
the directors of the Board. All the directors including
guidelines and directions to the Board of Directors
chairperson has a four year tenure. The Board
and the management for smooth functioning
formulates necessary policies and procedures
of the Centre. The General Meeting approves
and issue directives to the management to pursue
audited financial statements, appoints an auditor
effective implementation of plans and programs,
and fix audit fee, elect the Board of Directors,
and achieve organizational goals and objectives.
makes required amendment in the Memorandum
It is basically involved in making decisions with
of Association and the Article of Association and
regard to business plan, annual program and
represents the Nepal Rastra Bank (NRB), five
takes other key policy decisions of the organization.
budget, financial and operational plan, approval
Board of Directors
organization’s performance, and statutory and
The Board of Directors of RMDC is comprised of
capital structure of the organization.
The Partner for Safe, Sensible & Sustainable Microfinance
of larger amount of loan to MFIs. It also reviews the
regulatory compliance and the matters related to
Board of Directors with CEO
Annual Report
2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Board Members’ Profile
Mr. Ashoke SJB Rana
Chairperson
Mr. Rana represents the Himalayan Bank Limited.
He is the Chief Executive Officer of the Bank. He
holds a bachelor’s degree in Economics from the
George Mason University, Fairfax V. A., USA. He has
over 21 years of work experience in commercial
banking.
Mr. Ramjee Regmi
Mr. Anil Kumar Shrestha
Director
Director
Mr. Regmi represents the Nepal Rastra Bank (the
Mr. Shrestha represents the Standard Chartered
central bank of Nepal). He is the Executive Director
Bank Nepal Ltd.
of the Financial Management Department of
Institutions Origination & Client Coverage in
NRB. He possesses the degree of M.A. Economics
the bank. He holds a Master degree in Business
and MPA from Tribhuvan University of Nepal. He
Administration (MBA). He has worked for 16 years
has already completed 28 years of service in the
in banking sector.
Bank.
The Partner for Safe, Sensible & Sustainable Microfinance
He is the head of Financial
Annual Report
2012/13
Mr. Rajan Kumar Amatya
Mr. Kiran Kumar Shrestha
Director
Director
Mr. Amatya represents the Nepal Investment Bank
Mr. Shrestha represents Nepal Bank Ltd. He is the
Ltd. He is the Deputy General Manager in the
General Manager in the bank. He has an MPA
bank. He holds a master’s degree in Commerce
degree from Tribhuvan University, Nepal. He has
from Tribhuvan University of Nepal and worked for
over 26 years of working experience in the bank.
over 36 years in banking sector.
Mr. Anil Kumar Khanal
Ms. Sadhana Upadhyay
Director
Director
Mr. Khanal represents Nabil Bank Ltd., He is the
Ms. Upadhyay is an independent professional
Chief Risk Officer in the bank. He has an MBA
Director. She has an MBA degree from University of
degree from Tribhuvan University, Nepal. He has
the East, Manila and 30 years of work experience
over 25 years experience in the banking sector.
with the Nepal Rastra Bank.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Audit Committee
Management
The Audit Committee is formed with of three
RMDC is led by the Chief Executive Officer (CEO) with
directors of the Board. The Committee reviews
different department heads responsible for carrying
internal audit reports, external audit report, NRB
Inspection report, financial performance reports
of RMDC. Based on the reviews and findings, the
Committee, provides necessary recommendations
and guidance to the management for necessary
improvements in operation and makes suggestions
to the Board for policy changes or improvements.
The internal auditor of RMDC submits its internal
audit reports directly to the Audit Committee.
Risk Management
Committee
The Risk Management Committee is also formed
with three directors of the Board. This committee
holds quarterly meetings to update and discuss
on current issues related with microfinance sector.
It reviews the reports on the risk management,
related with regard to the operation of the
Centre and its activities. It is concerned with the
identification of the risk, appropriateness of the
management system, evaluation of risk, internal
control and monitoring, risk bearing capacity,
policy and guideline related and it also give
suggestions to the board on the problems related
to the microfinance that can affect the activities
of the Centre keeping in view of the economy of
the country.
07
The Partner for Safe, Sensible & Sustainable Microfinance
out day-to-day activities as directed by CEO. The
CEO is assisted by a number of experienced and
professional staff to carry out departmental functions.
Including the CEO, RMDC has a total of 22 staff; 16
professional staff and 6 support staff (see Table 1).
RMDC has maintained thin staffing from the very
beginning of its operation. Which has helped reducing
in its cost of operation and maintain operational
efficiency.
Table 1: Number of Staffs in
Different Fiscal Years
Fiscal Year
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Professional
Staff*
Support
Staff
Total Staff
7
8
8
7
7
9
12
12
15
15
16
16
18
16
4
4
4
4
5
5
6
6
6
6
7
7
7
6
11
12
12
11
12
14
18
18
21
21
23
23
25
22
• Includes the Chief Executive Officer
Annual Report
2012/13
Organization Structure
Board of Directors
Audit Committe
Chief Executive Officer
Microfinance
Service
Department
Supervision
Department
Financial
Management
Department
Human
Resource
Management
Department
Institutional
& Social
Development
Department
Planning
& Research
Department
Internal Audit
Department
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Report of the Board of Directors
Dear Shareholders, Ladies and Gentlemen,
On behalf of the Board of Directors and on my
own, I would like to welcome all the shareholders,
delegates and invitees at this Fifteenth Annual
fiscal year 2012/13 and the programs in the current
fiscal year on behalf of the Board of Directors of
RMDC.
General Meeting of the Rural Microfinance
1. Operational Status of the Centre
Development Centre Ltd (RMDC).
comprising balance sheet, profit and loss account,
Over the year the Centre has expanded paid up
capital by 13.8% with the investment in the equity
by International Finance Corporation (IFC) and
Siddhartha Bank Limited. Loan investment and
borrowing have increased by 22.4% and 18.7%
respectively. The Centre has been maintaining
zero NPA from its inception. The number of partner
organizations increased to 136 from 102 and their
beneficiaries also increased to 1.49 million from
1.33 million. The comparative status of the two
profit and loss appropriation account, cash flow
fiscal years is given below:
RMDC has successfully completed its 15 years’
operation on October 29, 2013. It has been
successfully
implementing
its
business
plan
aiming to promote stable and steady growth of
microfinance sector in the nation. On this special
occasion, I take the privilege to present the status,
progress and financial position of the Centre
09
statement and other financial statements of the
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
S.No.
Particulars
FY 2012/13
FY 2011/12
Increase (%)
1.
Paid up Capital
364,000
320,000
13.8%
2.
Share Premium
49,480
0
0
3.
General Reserve
131,494
102,430
28.4%
4.
Retained Earning
325,157
268,243
21.2%
5.
Borrowings
3,032,519
2,555,162
18.7%
6.
Loans and Advances
2,332,400
1,905,476
22.4%
7.
Other Investment
1,910,427
1,402,865
36.2%
8.
Net Profit
145,317
136,520
6.4%
9.
Capital Adequacy %
33.11%
31.52%
5.0%
10.
Partner Organization
136
102
33.3%
11.
No of Members (000')
1493
1333
12.0%
12.
NPA %
0
0
0
The progress of the first quarter of the current
fiscal year has been noted satisfactory. The share
2. Change in Capital Structure
quarter of the last year. NPA in this quarter also has
In FY 2010/11, the authorized capital, the issued
capital and the paid up capital were increased
to Rs.1000 million, Rs.520 million and Rs.520 million
respectively in accordance with the decision
of 11th annual general meeting of the Centre.
In FY 2012/13 the Centre was able to raise paid
up capital to Rs. 364 million in July 15, 2013 after
selling out 3,00,000 and 1,40,000 units of “Kha”
category of promoter’s share to International
Finance Corporation and Siddhartha Bank Limited
respectively. The share apportioned for the public
issue 15,60,000 units amounting Rs.156 million
which comprise 30% of the paid up capital was
not booked in the share capital account as the
allotment could not take place within the fiscal
year although the issue and subscription was
remained zero as before.
completed within the fiscal year.
apportioned for the public issue 1560000 units
amounting to Rs.156 million which is 30% of the
paid up capital were issued within mid July 2013.
After the allotment of public share the Centre
has been able to maintain authorized capital,
issued capital and paid up capital of Rs 1 billion,
Rs.520 million and Rs. 520 million respectively in
the mid August 2013. The Centre has increased
its loan portfolio and other investment to Rs.2.43
and Rs.2.23 billion from Rs.2.33 and Rs.1.91 billion
respectively compared to the figures of mid July
2013. Likewise, retained profit and net profit also
increased to Rs.325 and Rs.68 million from Rs.268
and Rs.41 million compared to the corresponding
The Partner for Safe, Sensible & Sustainable Microfinance
10
Annual Report
2012/13
3. Change in the Board of Directors
There has been minor change in the Board of
Directors in the fiscal year 2012/13. The board
member representing the Nepal Rastra Bank Mr.
Man Mohan Kumar Shrestha was replaced by
Mr. Ramjee Regmi. The Board extends sincere
appreciation and thanks to Mr. Shrestha for his
valuable contribution to the success of the Centre.
4. Audit Committee
The audit committee comprising three members
of the Board of Directors-Mr. Ramjee Regmi as the
Chairperson, Mr. Rajan Kumar Amatya and Mr. Anil
Kumar Shrestha as the members had 5 meetings in
the fiscal year 2012/13 and it has been providing
necessary directions to the Management and also
making suggestions to the Board of Directors on
policy matters.
5. Internal Control System
The Centre has built up effective internal control
system. It has developed all policies and procedures
such as, credit policy, staff loan policy, loan write-off
policy, internal audit procedure, risk management
guidelines and other operational and finance related
guidelines required to keep smooth operation of
the Centre. The internal audit function has been
discharged on time.
6. Monitoring of the Partner
Organizations
RMDC conducts regular monitoring and follow-up
of the operations of the partner organizations and
thereby help them to move towards achieving
operational and financial self-sufficiency without
11
The Partner for Safe, Sensible & Sustainable Microfinance
flaws. Most of the partner organizations (POs) of
the Centre are operating in line with the standard
of corporate governance set by Nepal Rastra Bank
and Department of Cooperatives. All POs have
maintained good recovery of their loans and are
able to achieve operational self-sufficiency.
7. Personnel Management
The Centre has been adopting a rational
staff recruitment policy maintaining optimum
productivity of the employees from its inception.
The Centre has now been functioning with a total
of 24 employees including the Chief Executive
Officer.
8. Progress and Achievements
a. Loan Disbursement and Outreach Expansion
The Centre has approved loans amounting Rs.
10.20 billion to 136 MFIs till the end of the fiscal
year 2012/13. Out of which the Centre has
disbursed Rs. 8.85 billion to 114 MFIs. These MFIs
have been providing microfinance services
to about 1.5 million poor households of 67
districts in the country. The Centre has been
able to collect 100 percent of its loan dues
on time from its partner organizations with an
outstanding loan balance of Rs. 2.33 billion at
the end of FY 2012/13.
b. Institutional Development of MFIs and Training
Programs
With the objective of developing institutional
capacities of MFIs, the Centre has been organizing
numerous seminars, workshops and training
Annual Report
2012/13
programs for the partner organizations’ officials,
staff and clients. The Centre organized a two day
long conference “Revisiting Nepal Microfinance:
Vision 2015” on Dec 20-21, 2012 with the
participation of over 250 participants comprising
MFI
leaders,
policy
makers,
development
specialists, bankers, and the representatives of
9. Status of the Microfinance
Sector
It is estimated that 1.7 million deprived families
have been served by the microfinance institutions.
Out of which around 1.5 million families have been
served by RMDC’s 136 partner MFIs alone.
significantly enhanced the capacities of the
The technical, financial and capacity building
supports of the Centre has contributed to
raising the institutional capacity of the POs. They
have been equipped with trained manpower.
Microfinance also had enhanced the socio
economic empowerment of the women which
comprises 95% of the beneficiaries. It has not only
raised their income but also helped them to raise
their living standard, children’s education, housing
condition and food and nutrition. The special
model and approach of microfinance also have
helped it to reach the poor and deprived families.
The beneficiaries also have been engaged in
productive activities; which has enabled them
to make loan repayments on time. However,
in last few years due to the proliferation of MFIs,
there are seen unhealthy competition among
MFIs resulting in overlapped and over financing to
clients which has led to numerous problems and
flaws in the microfinance sector. The Centre has
been sensitizing the concern stakeholders on the
possible consequences of such competition for
partner organizations and their clients, and
the last few years.
boosted up their loan portfolio quality resulting in
10. Financial Condition of the
Centre
the central bank and the Government of Nepal.
The conference was revisited the relevance
of the vision and the goal set by the previous
conference and also reviewed the progress
made by MFIs and identified the challenges and
problems faced by them on their way to achieve
the goal. On December 21, 2012, a seminar
namely “Microfinance and Social Business” also
was organized. The forum was addressed by
Nobel Laureate Professor Muhammad Yunus of
Bangladesh as a keynote speaker. The occasion
was graced by the then Prime Minister of Nepal
Mr. Babu Ram Bhattrai as the chief guest.
The Centre has organized a total of 67 trainings
and seminars in the fiscal year 2012/13. A total
of 2,306 officials and staff of MFIs participated
in those programs. Till the end of the fiscal year,
the Centre provided training to 18,847 officials
and staff of MFIs. These training supports have
over 98 percent repayment rate.
Under the financial and technical supports of
the Centre, the partner organizations have been
conducting various training and seminars for their
staff and also skill development training, capacity
building and leadership development training,
workshops of center chiefs and pre-group training
to their new clients with a view to enhance
their organizational capacities and incomegenerating skills. In the fiscal year 2012/13, a
total of 66,947 clients of the partner organizations
participated in various training programs. Till
the end of the fiscal year, the Centre provided
training support to 647,177 clients of 319 MFIs of
the country.
As regards to the financial condition of the Centre,
the fiscal year 2012/13 recorded the total income
of Rs.356.33 million nearly at par with the FY
2011/12. The total expenses including personnel,
office operation, and interest expenses have
decreased by 10 %, amounting Rs.128.25 million.
As per the Bonus Act, 10% staff bonus amounting
Rs.20.73 million has been provisioned out of
the profit before bonus and 30% corporate tax
amounting Rs. 62.03 million has been provisioned
out of the profit after bonus. Out of the Net-ProfitAfter-Tax amount of Rs.145.32 million, 20 percent
amounting Rs.29.06 million has been appropriated
to the compulsory General Reserve and Rs. 2
million have been allocated for ‘the Microfinance
The Partner for Safe, Sensible & Sustainable Microfinance
12
Annual Report
2012/13
Development Fund’. The dividend of 15%
amounting Rs.78 million has been proposed for
the distribution to shareholders in the fiscal year.
After overall adjustments as stipulated above, the
remaining balance of Rs.17.26 million has been
proposed to be transferred to the Balance Sheet.
11. Current Year’s Program
Now, I would like to briefly highlight the Centre’s major
programs in the current fiscal year.
a) There will be continuation of the wholesale lending
to the microfinance banks, the FI-NGOs and the
registered savings and credit cooperatives and
small farmers cooperatives after appraising their
performances and institutional capabilities.
b) The Centre will extend capacity building and
institutional development supports to the existing
and prospective MFIs in the project districts of the
Community Irrigation Project funded by Asian
Development Bank.
c) Credit will be channeled through MFIs and
Cooperatives for the self employment of youths
who have acquired skills and training under
YUWAccess Project.
d) The Centre will give special focus on the
microfinance programs targeted to the poor
living in the hills and mountains. It will continue
to identify potential local cooperatives and
develop their institutional capacities to discharge
microfinance services in their respective areas
and a certain amount of loan will be provided at
lower interest rate.
e) The Centre has set a goal of reaching out to
a total of 1613 thousand poor families with
microfinance services by the end of the current
fiscal year, through extension of the services to
additional 120 thousand poor families in this year.
The Centre will identify new partner MFIs and
encourage them to lend loans of small size to the
poor and unserved population.
f) The Centre will continue institutional capacity
building supports to its partner organizations from
the resources of its own. It will review its training,
workshop and seminar programs to enhance
their effectiveness in the future. It will also work for
resolving the problem of over financing caused
by the overlapped lending of MFIs through
promotion of mutual understanding by way
of regular dialogue among MFIs and intensive
monitoring and follow up of their operations by
the Centre.
13
The Partner for Safe, Sensible & Sustainable Microfinance
g) The Centre also plans to extend micro enterprise
loans to the graduated clients of MFIs and to
other individual micro entrepreneur clients of
savings and credit cooperatives. As there is
difficulty in augmenting microfinance services
in the hills and remote areas due to the very
limited number of microfinance institutions in
such areas, the Centre plans to identify potential
local cooperatives and provide financial and
technical support for developing their institutional
capacities to discharge microfinance services in
their respective areas.
h) The Centre will undertake training programs
on risk management to the MFIs to draw their
attention to increasing risks due to haphazard
lending.
i) The Centre from the fiscal year 2013/14 has
planned to introduce loans to clients, such as
a) Agriculture loan, b) Livestock loan, c) Clean
energy loan and d) Housing loan.
j) The Centre will further extend support to the
MFIs to provide financial literacy training to their
clients.
12. Vote of Thanks
Lastly, I would like to express my sincere gratitude to
all shareholders institutions and public shareholders,
the Government of Nepal, the Nepal Rastra Bank, the
Asian Development Bank and the Centre’s partner
organizations for their support and cooperation. On
behalf of the Board of Directors, I would also like
to place in record my heartfelt thanks to the Chief
Executive Officer and the staff of the Centre for
their contribution to the growth and professional
development
of
the
Centre
and
its
partner
organizations. Likewise, I am grateful to the media
for their coverage of the Centre’s activities and to
all other well-wishers of the Centre. As usual, I look
forward to receiving your valuable suggestions and
supports for improving the operational capacity and
service quality of the Centre in the future as well.
Thank You!
Ashoke SJB Rana
Chairperson
Board of Directors
Kathmandu, January 13, 2014, Monday
Annual Report
2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Auditor’s Report
and
Financial Statements
The Partner for Safe, Sensible & Sustainable Microfinance
J.B. RAJBHANDARY & ASSOCIATES
Annual Report
2012/13
CHARTERED ACCOUNTANTS
2nd Floor (North Wing), Sherpa Mall, Durbar Marg, P.O. Box:23725, Kathmandu, Nepal
Tel: (01) 4228352, (01) 4247177, Fax:977-1-4244971 E-mail:jitendrarb@mos.com.np
INDEPENDENT AUDITOR’S REPORT
THE SHAREHOLDERS OF
RURAL MICROFINANCE DEVELOPMENT CENTRE LTD.
Report on Financial Statements
We have audited the accompanying financial statements of Rural Microfinance Development Centre Ltd, which comprise the balance
sheet as at 31st Ashad 2070 corresponding to 15th July 2013, and the Profit & Loss Account, Statement of Changes in Equity and Cash
Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Nepal Accounting
Standards so far as applicable in compliance with prevailing Acts and laws. This responsibility includes: designing, implementing and
maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates
that are reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with Nepal Standards on Auditing. Those standards require that we comply with relevant ethical requirements and plan and perform
the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves
performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected
depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, we consider internal control relevant to the company’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Report on Other Legal and Regulatory Requirements (Bank and Financial Institution Act 2063 and Company Act 2063)
On examination of the financial statements as aforesaid, we report that:
a. We have obtained all information and explanations asked for, which to the best of our knowledge and belief were necessary for
the purpose of our examination.
b. In our opinion, proper books of account as required by law have been kept by the company, in so far as appears from our
examination of those books of account and the financial statements dealt with by this report, prepared in the format prescribed by
Nepal Rastra Bank are in agreement with the books of accounts.
c. In our opinion and to the best of our information and according to the explanations given to us and from our examination of the
books of accounts of the company, we have not come across the cases where the Board of Directors or any member thereof or
any employee of the company has acted deliberately contrary to the provisions of the law relating to accounts or caused loss or
damage to the company or committed any misappropriation or violated any directive of Nepal Rastra Bank or acted in a manner
to jeopardize the interest and security of the company and its depositors
d. In our opinion, adequate capital fund and provisions for losses have been made and the business of the company has been
conducted within its authority.
Opinion on the financial Statements
In our opinion and to the best of our information and according to the explanations given to us, the said financial statements, read
together with the notes attached thereon give a true and fair view of the financial position of the company as of Ashad 31st, 2070
(15th July, 2013) and of the results of its financial performances and its cash flows for the year then ended in accordance with Nepal
Accounting standards so far as applicable in compliance with the prevailing Laws.
CA, Jitendra B. Rajbhandary
Proprietor
Date: 1st Novembar 2013
Place: Kathmandu,
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Balance Sheet
As at Asar 31, 2070 (As at July 15, 2013)
SN
Capital and Liabilities
1
Share Capital
2
Schedule
This Year (Rs)
Previous Year (Rs)
4.1
364,000,000.00
320,000,000.00
Reserve and Funds
4.2
873,611,166.27
699,788,615.27
3
Debenture and Bonds
4.3
-
-
4
Borrowings
4.4
3,032,518,653.27
2,555,161,884.58
5
Deposit Liabilities
4.5
-
-
6
Proposed Cash Dividend
78,000,000.00
-
7
Income Tax Liabilities
59,100,172.00
73,245,455.00
8
Other Liabilities
91,165,661.55
102,628,675.26
4,498,395,653.09
3,750,824,630.11
This Year (Rs)
Previous Year (Rs)
4.6
Total Liabilities
SN
Assets
Schedule
1
Cash Balance (with Coins)
-
14,929.92
2,899.00
2
Nepal Rastra Bank Balance
-
43,999,396.99
29,176,433.57
3
Bank Balance at Bank and Finance
4.7
194,917,020.02
363,347,269.27
4
Money at Call and Short Notice
-
-
5
Investments
4.8
1,910,427,487.00
1,402,865,408.00
6
Loan Advances
4.9
2,239,104,240.00
1,829,257,152.00
7
Fixed Assets
4.10
2,030,187.69
2,345,434.73
8
Non Banking Assets
4.11
9
Other Assets
4.12
107,902,391.47
123,830,033.54
4,498,395,653.09
3,750,824,630.11
-
Total Assets
Megh Raj Gajurel
Shankar Man Shrestha
Ashoke SJB Rana
Senior Manager (FMD)
Chief Executive Officer
Chairman
Directors:
Ramjee Regmi
As per our attached report of even date
Anil Kumar Shrestha
Rajan Kumar Amatya
Kiran Kumar Shrestha
Anil Kumar Khanal
Sadhana Upadhyay
The Partner for Safe, Sensible & Sustainable Microfinance
CA Jitendra B. Rajbhandary
J.B. Rajbhandary & Associates
Chartered Accountants
Annual Report
2012/13
Profit and Loss Account
For the period Shrawan 1, 2069 to Asar 31, 2070 (July 16, 2012 to July 15, 2013)
SN
Particulars
1
Interest Income
2
Interest Expenses
Schedule
This Year (Rs)
Previous Year (Rs)
4.14
324,023,533.52
331,567,751.73
4.15
82,271,803.00
72,381,307.29
241,751,730.52
259,186,444.44
19,635,473.87
11,793,582.51
-
-
261,387,204.39
270,980,026.95
Net Interest Income
3
Commission and Other Operating Income
4
Exchange Fluctuation Income
4.16
-
Total Operating Income
5
Personnel Expenses
4.17
17,226,120.42
18,270,838.69
6
Other Operating Expenses
4.18
11,675,263.65
6,466,930.05
7
Exchange Fluctuation Losses
-
Operating Profit before Loss Provision
8
Provision for Losses
4.19
Operating Profit
232,485,820.32
246,242,258.21
17,076,962.00
45,583,096.66
215,408,858.32
200,659,161.55
9
Non-Operating Gain/Loss
4.20
-
-
10
Reversed from Provision Expenses
4.21
12,668,384.92
13,416,916.00
228,077,243.24
214,076,077.55
228,077,243.24
214,076,077.55
Profit from Regular Operations
11
Extraordinary Operational Gain/Loss
4.22
Net profit from Whole Operation
12
Provision for Employees Bonus
20,734,294.84
19,461,461.60
13
Income Tax Provision
62,026,137.65
58,094,670.87
● This year
59,100,172.00
73,245,455.00
46,620.00
133,291.00
2,879,345.65
(15,284,075.13)
145,316,810.75
136,519,945.08
● Previous Year
● Deferred Tax (Income)/Expense
Net Profit/Loss
Megh Raj Gajurel
Shankar Man Shrestha
Ashoke SJB Rana
Senior Manager (FMD)
Chief Executive Officer
Chairman
Directors:
Ramjee Regmi
As per our attached report of even date
Anil Kumar Shrestha
Rajan Kumar Amatya
Kiran Kumar Shrestha
Anil Kumar Khanal
Sadhana Upadhyay
CA Jitendra B. Rajbhandary
J.B. Rajbhandary & Associates
Chartered Accountants
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Profit and Loss Appropriation Account
For the period Shrawan 1, 2069 to Asar 31, 2070 (July 16, 2012 to July 15, 2013)
SN
Particulars
Schedule
This Year (Rs)
Previous Year (Rs)
Income
1
Retained Earning up to Previous Year
268,242,555.73
2
Deferred Tax Reserve up to previous Year
3
Net Profit of This year
4
Exchange Equalization Fund
5
Dividend Return of F/Y 2009/10
268,242,555.73
179,123,441.58
145,316,810.75
136,519,945.08
39,656,789.00
Total
453,216,155.48
315,643,386.66
29,064,000.00
27,304,255.80
2,000,000.00
2,000,000.00
-
-
78,000,000.00
-
Expenditure
1
Net Retained Losses up to Previous Year
2
Net Losses of Current Year
3
General Reserve Fund
4
Contingent Reserve Fund
5
Microfinance Development Fund
6
Dividend Equalization Fund
7
Employee Related Fund
8
Proposed Dividend
9
Proposed Bonus Share Issue
10
Special Reserve Fund
11
Exchange Equalization Fund
12
Capital Redemption Fund
13
Capital Adjustment Fund
14
Previous Years Tax Adjustment
15
Deferred Tax Reserve
(2,879,345.65)
15,284,075.13
16
Investment Adjustment Fund
21,875,000.00
2,812,500.00
Total
128,059,654.35
47,400,830.93
Retained Earning/(Loss)
325,156,501.13
268,242,555.73
17
Megh Raj Gajurel
Shankar Man Shrestha
Ashoke SJB Rana
Senior Manager (FMD)
Chief Executive Officer
Chairman
Directors:
Ramjee Regmi
As per our attached report of even date
Anil Kumar Shrestha
Rajan Kumar Amatya
Kiran Kumar Shrestha
Anil Kumar Khanal
Sadhana Upadhyay
The Partner for Safe, Sensible & Sustainable Microfinance
CA Jitendra B. Rajbhandary
J.B. Rajbhandary & Associates
Chartered Accountants
Annual Report
2012/13
Cash Flow Statement
For the period Shrawan 1, 2069 to Asar 31, 2070 (July 16, 2012 to July 15, 2013)
SN
Particulars
This Year (Rs)
Previous Year (Rs)
(A) Cash Flow from Operating Activities
1
Cash Inflow
1.1 Interest Income
343,659,007.39
343,361,334.24
324,023,533.52
331,567,751.73
1.2 Commission and Discount Income
-
-
1.3 Foreign Exchange Transaction Income
-
-
1.4 Income from Loan Write-off
-
-
1.5 Other Income
19,635,473.87
11,793,582.51
(193,286,676.91)
(187,897,695.98)
2.1 Interest Expense
(82,271,803.00)
(72,381,307.29)
2.2 Personnel Expense
(17,226,120.42)
(18,270,838.69)
2.3 Office Operating Expense
(11,655,483.65)
(6,444,635.05)
2.4 Income Tax Payment
(61,398,975.00)
(71,339,453.35)
2.5 Other Expense
(20,734,294.84)
(19,461,461.60)
2
Cash outflow
Cash Flow Before changes in Working Capital
Increase and Decrease in Current Assets
150,372,330.48
155,463,638.26
(901,955,932.58)
(218,064,701.32)
1
Increase and Decrease in Money at Call and Short Notice
-
-
2
Increase and Decrease in Short Term Investments
(476,187,079.00)
(539,204,443.00)
(426,924,050.00)
335,422,900.00
1,155,196.42
(14,283,158.32)
17,754,060.50
9,884,769.31
-
-
3
Increase and Decrease in Loan and Bills purchase
4
Increase and Decrease in Other Assets
1
Increase and Decrease in Deposits
Increase and Decrease in Current Liabilities
2
Certificate of Deposits
-
-
3
Increase and Decrease in Short-term Borrowings
-
-
4
Increase and Decrease in Other Liabilities
17,754,060.50
9,884,769.31
(B) Cash Flow from Investing Activities
(31,668,323.96)
(3,946,909.82)
1
Increase and Decrease in Term Investments
(31,375,000.00)
(3,312,500.00)
2
Increase and Decrease in Fixed Assets
(293,323.96)
(634,409.82)
3
Income from Long term Investments
-
-
4
Dividend Income
5
-
-
(C) Cash Flow from Financing Activities
Others
611,902,610.65
250,347,257.93
1
Increase and Decrease in Long Term Borrowings (Bond, Debenture etc.)
477,356,768.69
242,460,655.74
2
Increase and Decrease in Share Capital
44,000,000.00
39,656,789.00
3
Dividend Refund
4
Increase and Decrease in Other Liabilities
5
Share Premium
6
Increase and Decrease in Subsidized / Refinance Loans from NRB
1,409,052.96
7,886,602.19
49,480,000.00
-
-
(153,595,254.91)
193,684,054.36
(F) Opening Cash and Bank Balance
392,526,601.84
198,842,547.48
(G) Closing Cash and Bank Balance
238,931,346.93
392,526,601.84
(D) Income/Loss from change in Exchange Rate in Cash and Bank Balance
(E) Cash from Total Activities of the year
-
Megh Raj Gajurel
Shankar Man Shrestha
Ashoke SJB Rana
Senior Manager (FMD)
Chief Executive Officer
Chairman
Directors:
Ramjee Regmi
Anil Kumar Shrestha
Rajan Kumar Amatya
Kiran Kumar Shrestha
Anil Kumar Khanal
Sadhana Upadhyay
As per our attached report of even date
CA Jitendra B. Rajbhandary
J.B. Rajbhandary & Associates
Chartered Accountants
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Wholesale Lending to
Microfinance Institutions
The core function of RMDC is wholesale lending
to retail microfinance institutions which provide
micro-credit to the poor households. RMDC has
been striving to build partnership with the existing
financial intermediaries, microfinance financial
institutions and cooperatives to extend its services
to the nooks and corners of the country.
Progress of Lending Program
RMDC is the largest wholesale lending institution for
microfinance in terms of its share in the wholesale
microfinance market in Nepal. It had approved
Rs.10.20 billion and disbursed Rs.8.85 billion of loan
amount to 114 retail MFIs operating in 67 districts
of the country till mid-July 2013. The borrowing
institutions include 7 microfinance development
banks (MFDBs), 10 development banks (DBs), 24
financial intermediary NGOs (FI-NGOs) and 95
cooperative societies. RMDC’s loan outstanding
balance with its partner organizations (POs’) at the
end of the fiscal year 2012/13 was Rs. 2.33 billion.
RMDC has been able to maintain excellent
loan portfolio quality with a hundred percent
loan recovery rate from the very first year of its
operation. This has been possible due to prudent
lending criteria & process it has adopted and
close supervision and follow up of its partner
organizations. The POs are also advised to follow
the best practices of microfinance so that they can
deliver quality lending and have good portfolio
quality. RMDC’s POs have also maintained near
hundred percent loan recoveries.
The loan portfolio growth of RMDC is at increasing
trend except in the FY 2011-12. RMDC has made
a considerable growth in its loan portfolio in FY
2012-13 disbursing Rs. 2.03 billion amount of loans
to its POs in the same fiscal year. There were also
addition of 34 new POs in the fiscal year. The
annual portfolio growth of RMDC of the last five
years has been portrayed in the figure 1.
21
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Figure 1: Growth of Annual Loan Portfolio of RMDC
2,500
Rs. in million
2,000
1,500
1,000
500
Jul-09
Jul-10
■ Annual Loan Disbursed
Jul-11
■ Annual Loan Recovered
RMDC has been making all possible efforts also to
expand microfinance operations in the hills and
mountain districts across the country.
It makes
onsite visits to the remote and isolated geographical
areas,
identify
potential
local
cooperative
societies, build their institutional capacities and
give start-up fund to commence microfinance
operation. RMDC also encourages its larger POs
to expand their microfinance operations in the
Jul-12
Jul-13
■ Outstanding Loan
Loan Products
RMDC offers a variety of loan products to MFIs, such
as i) Microfinance Operation Loan, ii) Microfinance
Promotion Loan, iii) Micro-enterprise Loan, iv)
Bridge Loan, v) Special Loan, vi) Seed Fund Loan
vii) Agriculture Loan, viii) Livestock & Poultry Loan,
ix) Clean Energy Loan and x) Housing Loan . The
products have been briefly described below.
hitherto un-served areas by providing them with
one million rupees of loan fund per branch at 2%
interest rate. Through its existing and new partners,
RMDC has expanded its operation to most of the
remote hill and mountain districts. The districts not
yet reached by RMDC’s POs are Humla, Mugu,
Dolpa, Manang and Solukhumbu.
Microfinance Operation Loan
Microfinance Operation Loan is the main loan
product of RMDC offered to retail MFIs. The purpose
of the loan is to finance a broad range of incomegenerating activities of the ultimate borrowers
The Partner for Safe, Sensible & Sustainable Microfinance
22
Annual Report
2012/13
who mainly comprise the poor women who need
fulfill its urgent need of fund while loan application
relatively less amount of loans for initiating income
for a new loan is under the process of approval
generating activities. With this loan fund, an MFI
at RMDC. This loan is later adjusted with the main
may disburse up to Rs.100,000 to a borrower as per
loan when it is approved. An MFI can obtain 20%
the client’s need and capacity to utilize the loan.
of its outstanding loan amount with RMDC under
this loan and the term of this loan product is up to
Microfinance Promotion Loan
six months. To avail this loan facility from RMDC, a
The main purpose of the Microfinance Promotion
and have maintained a good track record.
Loan is to promote small microfinance institutions
to commence microfinance operations. This
PO should have utilized at least three loan facilities
loans product is targeted at the MFI which have
Special Loan
not outreached over 10,000 clients yet and have
RMDC has introduced this loan product to solve a
not borrowed any loan from any other banks or
liquidity problem of its partner MFIs. A partner MFI of
financial institutions except from the Nepal Rastra
RMDC can apply for this loan facility as and when
Bank (the central bank of Nepal).
it needs and can repay the whole loan amount
in one installment or in a number of installments
Micro-enterprise Loan
RMDC offers Micro-enterprise Loan to its partner
MFIs to finance micro - and small enterprises (MSEs)
for their graduated clients. Receiving this loan
fund, an MFI may disburse up to Rs. 300,000 to a
graduated client. Generally, an MFI takes physical
collateral against the loan from the clients.
Bridge Loan
This is a short term loan provided to current POs to
23
The Partner for Safe, Sensible & Sustainable Microfinance
as agreed within its maximum term of one year.
The amount of this loan an MFI can obtain is upto
10% of its current loan outstanding with RMDC. To
avail this loan facility, partner MFIs should have
already utilized at least five loan facilities from
RMDC and have fulfilled all those criteria required
for borrowing a Special loan.
Seed Fund Loan
In view of the fact that the people in the remote
Annual Report
2012/13
hills and mountain areas of the country have very
the livestock and poultry business of the country.
limited access to microfinance services, RMDC
It is provided to the MFIs to lend to their clients for
has been offering a special loan product “Seed
livestock and poultry related business and industry
Fund Loan” to MFIs operating in the nineteen
such as goat rearing, buffalo rearing, fish farming,
remote hills and mountain districts in the country,
pig farming, veterinary shop etc.
namely
Achham,
Bajhang,
Bajura,
Bhojpur,
Darchula, Dolpa, Humla, Jajarkot, Jumla, Kalikot,
Clean Energy Loan
Khotang, Manang, Mugu, Mustang, Okhaldhunga,
The main purpose of introducing this loan
Sankhuwasabha,
Solukhumbu,
Taplejung
and
Tehrathum.
Under this scheme, RMDC provides a loan fund
up to one million rupees to a local microfinance
cooperative or an MFI branch which is operating in
any of the aforementioned districts. RMDC charges
just 2% annual interest rate on this loan product. It
is hoped that this soft loan will help an MFI to meet
at least two local staff cost and to have a marginal
product is to promote natural and environmental
conservation
through
microfinance.
Balance
environment contribute a lot on poverty reduction
but much efforts in this line have not seen in the
microfinance sector, so RMDC add this new loan
product to cater the growing needs of energy
finance. The partner MFIs disburse this loan to their
clients in the areas of environmental conservation
such as - bio-gas, solar, improved cooking stove,
surplus to conduct its operation.
micro hydro-electricity etc.
Agriculture Loan
Housing Loan
This loan product is offered to the retail MFIs to
This loan is provided to the MFIs to provide housing
cater the needs of clients for agriculture crops. The
loan specially focuses on the agriculture sector. It
will help to increase the agriculture productivity.
Livestock & Poultry Loan
This loan is for the promotion and development of
loan to their clients. Through this loan MFIs shall lend
to their clients to construct new house or repair
and maintain their existing house. Housing problem
generally produce mental and psychological
pressure in an individual and family as a whole
that reduce the productivity. This loan option will
help to relief the poor from such pressures. RMDC
charges an annual interest rate of 8% on this loan.
The Partner for Safe, Sensible & Sustainable Microfinance
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Annual Report
2012/13
Process of Lending to MFIs
•
RMDC offers wholesale loan funds to
institutions having a valid license to implement
microfinance program, such as specialized
microfinance development banks (MFDBs)1,
savings and credit cooperatives (SCCs)
and financial-intermediary NGOs (FI-NGOs)
or any financial institution legally allowed
to implement a microfinance program.
RMDC has also provided loan funds to some
development banks2 for financing small
scale livestock farming and the related
enterprises under the Community Livestock
Development Project (CLDP) funded by the
Asian Development Bank.
•
For a loan fund, an eligible MFI submits
a loan application along with a set of
required documents to RMDC. (The criteria
for determining an institution’s eligibility for
borrowing from RMDC are given in Box 2.)
After receiving a loan application, RMDC
makes off-site and on-site investigations of the
applicant institution. After making a detailed
appraisal of the institution, the decision of loan
approval or disapproval is taken (See Box 3
for the key parameters of RMDC’s appraisal).
Business plan and institutional capacities
of the MFIs are also taken into account
while determining loan size and repayment
schedule. After agreeing on the necessary
terms and conditions by the applicant MFI
and signing of the legal documents by both
parties, RMDC releases the approved amount
on installments.
Box 2: RMDC’s Eligibility Criteria for Lending
An organization willing to borrow a loan from RMDC should fulfill the following requirements:
(i)
be registered under an appropriate act and received a license for microfinance operation;
(ii)
have minimum of one year experience in operating microfinance activities;
(iii)
have savings balance at least 5% of the total loan outstanding in the 1st year, 10% in the 2nd year, 15%
in the 3rd year and 20% in the 4th year and onward;
(iv)
have attained minimum 90% loan recovery rate for the first loan and 98% for the second loan onwards;
(v)
have committed and dynamic executive committee;
(vi)
have active and professional management;
(vii)
have appropriate management information system;
(viii) have an appropriate business plan;
(ix)
have adopted modern accounting system;
(x)
have appropriate policies and procedures for implementing and monitoring its credit program;
(xi)
have at least 50 active borrowers;
(xii)
have at least 25 percent female borrowers;
(xiii) Having minimum net-worth of Rs. 100,000;
(xiv) have minimum financial resource of Rs. 250,000;
(xv) have a trend towards operational self sufficiency as per the last three years’ financial position; and
(xvi) have been audited in time
MFDBs are class ‘D’ financial institutions as per ‘Bank and Financial Institution Act (ABFIA), 2006’ and are established solely for
microfinance operation.
2
Development Banks are class ‘B’ financial institutions as per the ‘BAFIA, 2006’
1
25
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Box 3: RMDC’s Parameters of MFI Appraisal for Lending
•
Institution’s legal identity and historical background
•
Viability and applicability of business plan
•
Governance and management
•
Human resource policy and management
•
Credit policy and operational procedure
•
Accounting policy and practices
•
Internal control, auditing and risk management system
•
Financial management policy and systems
•
Loan portfolio quantity and quality
•
Financial status
•
Capital and financial resources
•
Management information system
•
Institutional culture
•
Feasibility of microfinance operation in the planned area
•
Market competition
•
RMDC makes off-site and on-site monitoring
and follow ups of the borrower MFIs to ensure
that the disbursed loans are being properly
utilized by the MFI and the institution’s overall
loan program as well as financial progress are
on right track.
•
RMDC charges an annual interest rate of 2-8%
on its loans disbursed to MFIs. The borrower MFIs
are free to set their own lending rate to their
clients. However, RMDC advises them to have
an appropriate interest rate so as to cover
their financial and operational costs as well as
to earn some profit in order to attain financial
viability and sustainability over a reasonable
period of time.
•
Regarding loan term, RMDC gives a period
of two years for the first loans and three years
period for the second and subsequent loans
based on the previous repayment records of
the MFI and the nature of loan. A grace period
of three to six months is given to each loan for
repayment.
•
About repayment of loan installments, the MFIs
are required to repay the interest dues and the
principal installments quarterly.
The Partner for Safe, Sensible & Sustainable Microfinance
26
Annual Report
2012/13
Salient Features of
Partner Organizations’
Credit Program
procedures, and about institutional norms and
The main features of the partner organizations’
are then organized into a Center under the
values. At the end of the training, the interested
trainee women organize themselves into small
solidarity groups (five members each), which
facilitation of the facilitator field staff.
micro-credit programs are as follows:
•
The partner MFIs of RMDC target the poor,
•
of loan without any physical collateral. This
the landless, the assetless or the low-income
facility has encouraged the women of poor
families. To identify the poorer households in
households to join a microcredit program. All
a community, the MFIs use a methodology,
members of the groups or the whole center
such as Participatory Rural Appraisal (PRA),
Participatory
Wealth
Ranking
(PWR)
are jointly liable for payment of the due
or
amount of a member in case the member fails
household survey.
•
Most
of
the
partner
MFIs
practice
the
Bangladeshi Grameen Bank’s group lending
to repay her loan installment for any reason.
•
Some
partner
MFIs
have
been
offering
micro-enterprise loans (up to Rs.300,000) to
methodology with a slight modification to
the graduated clients, who could show an
suit local conditions. Only a woman member
excellent track record of loan repayment in
from each poor family is allowed to join an
the past, a capacity of utilizing loans and a
MFI’s micro credit group. Women of poor
considerable experience in managing micro-
households are identified and are then invited
enterprises. Some MFIs are also taking physical
to participate in a week-long pre-group
collateral against the micro enterprise loans.
training (PGT) organized in a nearby place of
the village. During the training, a field staff of
Clients are provided up to Rs. 100,000 amount
•
The MFIs charge an annual interest rate of 15
the respective MFI teaches the participating
- 25 percent on their loans disbursed to their
women about MFI’s products and services
clients. The repayment period is generally one
(loan, savings, insurance, etc.), their delivery
year, and the installments are paid weekly,
Box 4: Development Impacts of Microfinance at Client Level
A number of success stories collected by RMDC and its POs indicate that microfinance has created the following impacts on the clients:
27
•
Increased household income and assets of the poor
•
Improved entrepreneurship and occupational skills of the clients and the family members
•
Created self- employment opportunities for the poor
•
Enhanced confidence level of the clients
•
Developed leadership capability of the clients
•
Boosted dignity of the women borrowers in their families and communities
•
Improved food security for the poor households
•
Increased school enrollment of the clients’ children
•
Improved sanitation and health conditions of the children and women of the beneficiary households
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
•
bi-weekly or monthly depending on local
their clients in order to improve the latter’s
situations and clients’ demand and choice.
confidence
The repayment period of micro-enterprise
MFIs also make necessary efforts to link
loans may be 2-3 years depending up on the
their clients with the related government or
sizes of loan and the nature of enterprise.
private development agencies for necessary
skills.
The
services, non-formal education, etc.
savings products offered by the MFIs. Some
•
Most of the partner MFIs have been able to
savings, pension fund savings and educational
maintain over 99 percent loan repayment
savings schemes to their members. Savers get
rate.
6-8 percent of annual interest on their savings
nearly 98 percent repayment rate.
deposits.
•
occupational
skills development, market supports, health
Compulsory member savings is one of the basic
MFIs have also offered personal voluntary
and
•
On average they have maintained
Most of the MFIs have crossed the operational
In addition to providing microfinance services,
self-sufficiency level and are on the way to
the MFIs conduct training programs for
reach financial self sufficiency.
The Partner for Safe, Sensible & Sustainable Microfinance
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The Partner for Safe, Sensible & Sustainable Microfinance
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2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Promotion and Capacity Building
of Microfinance Institutions
Promotion of New MFIs
geographical areas. RMDC officials also make a
RMDC has been identifying potential MFIs from
and development of such institutions. There is still a
among
the
existing
NGOs
or
cooperatives
based on their institutional work profile, capital,
performance and visions & commitments of
their
leaders
towards
operating
sustainable
microfinance for reduction of poverty, and the
feasibility of microfinance program in their planned
number of visits to different districts for identification
greater need to promote MFIs that are committed
to expanding microfinance services particularly in
the remote hills and mountain areas in the country.
The sequential steps that are followed by RMDC is
presented in the box 5.
Box 5: RMDC’s Sequential Steps for Promotion of MFIs
(i)
Potential institutions (NGOs, cooperatives, banks) are identified based on their institutional work profile,
experience and commitment towards microfinance;
(ii)
An exposure visit program is organized for the executive committee members of the interested potential
organization to have a self-study of best practices of microfinance;
(iii) After the visit, the participating members are invited to take part in a three-day interactive orientation
program, where participants share their experiences and resource persons facilitate discussions on the
major issues, such as essentials of microfinance, steps of implementing microfinance program, factors
affecting viability and sustainability of MFIs, and process of determining appropriate interest rate .
(iv)
A few field staff of the selected institutions are provided with a two-month long on-site practical training
on operational systems at field offices of successful MFIs;
(v)
The staff of the institutions are also trained on PRA/PWR methodologies, which they can use to assess
problems and potentialities for implementing microfinance programs in an area, and to identify poorer
households to include as members or clients;
(vi)
A few officials of the institutions are provided with training and on-site guidance on preparing their own
three-year business plans;
(vii)
The institutions are given on-site consultancy on establishing appropriate operating systems (e.g. accounting, MIS, reporting, monitoring and supervision, internal control, etc.) and on organization of pregroup training and centers of members or clients;
(viii) Regular off-site and on-site monitoring and supervision of the borrowing institutions are undertaken; and
(ix)
31
Special on-site technical assistance is also given to an MFI as per its need and demand.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Figure 2: Annual Progress of MFI Staff Training
2,500
No. of Staff
2,000
1,500
1,000
500
0
■ No. of Staffs
2008-09
2009-10
1021
1845
2010-11
2011-12
2012-13
1728
1133
2306
Fiscal year
Capacity Building of MFI
Officials and Staff
RMDC offers a wide range of capacity building
programs to its partner MFIs for upgrading
knowledge and skills of their staff and officials
on different subjects. In the FY 2012-13,
RMDC conducted a total of 32 national level
training programs for MFI staff and officials in
which altogether 1,190 MFIs staff and officials
participated. Similarly in this fiscal year, 29 in
house training programs were also organized
by MFIs with supports from RMDC, in which 1,057
staff and officials had participated (see Annex
II for the detailed information on the training
program). The annual progress trend of the MFIs’
staff training program of last five years has been
shown on Figure 2.
The major MFI staff and officials training programs
completed during the reporting fiscal year have
been briefly described below.
The Partner for Safe, Sensible & Sustainable Microfinance
32
Annual Report
2012/13
Revisiting Nepal Microfinance
Vision 2015
The second day started with discussions of participants
RMDC in collaboration with NMBA, MIFAN and
chalking out the possible measures to resolve them.
NEFSCUN organized a national conference, Revisiting
The problems and challenges which were identified
Nepal Microfinance Vision 2015, on December 20-
in the previous day were divided among the
21, 2012 in Kathmandu. The main objective of the
participants in four groups and the group members
national conference was to review the goal set by the
interacted on each problem, its causes and possible
national conference Nepal Microfinance Vision 2015
solutions along with identification of authorities or
held on October 28-29, 2010 in Kathmandu.
institutions responsible for implementing the solutions.
The conference was inaugurated by Mr. Deependra
Bahadur Kshetry, then Vice Chairman of National
faced by the micro-finance sector in Nepal and
Another session started with the presentations on the
findings made by the group.
Planning Commission. The inaugural ceremony was
The program was ended with closing session, chaired
chaired by Mr. Ashoke SJB Rana, Chairman of RMDC.
by Mr. Ashoke SJB Rana, Chairperson of RMDC. In the
Deputy Governor of Nepal Rastra Bank Mr. Gopal
session Governor of the Nepal Rastra Bank Dr. Yubraj
Prasad Kaphle and Executive Director of Nirdhan
Khatiwada was the chief guest and Mr. Mahesh
Utthan Bank Ltd., Dr. Harihar Dev Pant were present
Prasad Dahal, Joint Secretary, Ministry of Finance,
on the occasion as special guests.
was the special guest. On the occasion, welcoming
The conference was participated by over 250
microfinance practitioners operating all over the
country. There were bankers, regulators, planners and
policy makers also among the participants.
After the formal opening ceremony, the first day of the
conference witnessed four presentations on private
microfinance banks, Grameen Bikas Banks, Financial
Intermediary
NGOs
(FINGOs)
and
microfinance
cooperatives. The presentations were focused on the
progress, issues and strategies of the each category
of microfinance institutions. During the presentations,
participants expressed their queries, comments and
suggestions on the presented papers making the
discussions vibrant and informative.
33
in groups to analyze the challenges and problems
The Partner for Safe, Sensible & Sustainable Microfinance
the dignitaries Mr. Shankar Man Shrestha, CEO of
RMDC said that the MFIs should pay attention to the
growth and sustainability of their clients, not just focus
on their own growth and profitability.
Dr. Rabindra Kumar Shakya, former secretary of Nepal
Government presented conference findings as the
rapporteur of the conference. The revised goal for
the Nepal Microfinance vision 2015 is to outreach 2.5
million households by the end of 2015. It was based
on the tabulation made by each group of presenters
during the first day of the event, whereas previously
set vision and mission for 2015 were kept intact as set
by 2010 conference.
Annual Report
2012/13
Box 6:Resolution of Revisiting Nepal Microfinance Vision 2015
We microfinance practitioners take a vow to carry out following activities for the social and economic transformation of
target community by implementing quality microfinance services.
1. Identify the left out deprived family of own’s operation area and include them in microfinance services with first priority.
2. Provide microfinance services in the remote districts, each MFI having more than 25000 members, shall include one
unserved remote district under its area of operation from the year 2013 to deliver microfinance services.
3. Shall regularly measure income level of members, who have completed five years as borrowers and promote them as
entrepreneurs.
4. Sensitize and train staff and clients on cons of multiple lending to reduce multiple financing problem.
5. Spend a certain portion of profit of MFIs for capacity building and other welfare program of clients.
6. Give emphasis on financial literacy of the clients.
7. Build up coordination and cooperation between MFIs.
8. Provide financial access to the unemployed youth and create self employment for them.
9. Initiate self evaluation process by MFIs.
10. Emphasize on internal resource mobilization.
11. Organize public audit in the VDC under MFIs jurisdiction to get feedback from local communities, beneficiaries and
other concerned on the products and services provided to clients and educate them on organization’s policy,
procedures and achievement.
12. Reduce multiple lending and unhealthy competitions through effective credit reporting system among MFIs.
13. Develop and implement proper action plan to increase borrowers to members ratio.
14. Develop effective communication mechanism and build enhanced relationship and trust between management and
operation staff.
15. Improve the products and services regularly on the basis of feedback from clients.
16. Develop and implement proper working strategy for improvement in quality of centers and groups.
17. Provide loan to the client only after making appraisal of loan requirement of clients’, their capacity and track record
to avoid over indebtness of clients.
18. Ensure effective and regular monitoring and follow up of clients.
19. Top management of MFIs to act as a role model to inculcate culture in the staff suited to the values and principles of
microfinance.
20. Prepare career development plan of employees.
21. Establish a separate training department to provide required training to staff and clients in the MFIs having more than
ten thousand clients.
22. Conduct a study on client drop out by each MFI and share information with other MFIs.
The Partner for Safe, Sensible & Sustainable Microfinance
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Annual Report
2012/13
Felicitation of Nobel Laureate
Prof. Muhammad Yunus
Nobel Laureate Prof. Muhammad Yunus was felicitated by
the fraternity of microfinance in Nepal on December 21, 2012
in Kathmandu, during a seminar on Microfinance and Social
Business.
The felicitation inscribed in a brass plate within magnificent
wooden frame were offered to Prof. Yunus by then Honorable
Prime Minister Dr. Baburam Bhattarai in the gorgeous function
right after his keynote speech. Prof. Yunus was given a standing
ovation by the audience after his grand thoughtful speech on
microfinance and social business. The felicitations addressed Prof.
Yunus as the pioneer of microcredit and social business and loudly
appreciated his efforts to bring socio-economic improvement in
the lives of the poor and the deprived women all over the world.
The seminar on “Microfinance and Social Business” was jointly
organized by the Rural Microfinance Development Centre
Ltd. (RMDC) and the Confederation of Nepalese Industries
(CNI) in collaboration with Microfinance Association of Nepal
(MIFAN) and Nepal Microfinance Bankers Association (NMBA)
on December 21, 2012. It was inaugurated by then Honorable
Prime Minister Dr. Baburam Bhattarai. The seminar was graced
by Nobel Laureate Prof. Muhammad Yunus as a guest of honor.
The program was participated by other personalities such as
Mr. Dipendra Bahadur Kshetry, Vice-Chairman of National
Planning Commission; Dr. Yubraj Khatiwada, Governor of Nepal
Rastra Bank; Prof. H.I. Latifee, Managing Director of Grameen
Trust, Bangladesh; Mr. Ashoke SJB Rana, Chairperson of RMDC;
Mr. Shankar Man Shrestha, CEO of RMDC and Mr. Binod
Chaudhari, President of CNI.
Prof. Yunus delivered a keynote speech on microfinance & social
business in the gathering of more than 300 participants consisting
of diplomats, microfinance practitioners, bankers, professionals,
policy makers and business communities.
Prof. Yunus in his keynote speech stressed the need of social
business. According to him, social business means a business for
the benefit of the society, to transform the life of the people, to
give back its return to the people by revolving the investment. It
is the business which is not for making money. He said “making
money from business gives happiness but making other people
happy gives super happiness”. According to him the happiness
we can get from making 10 families happy, cannot be matched
with happiness from making millions and billions of money.
“Charity money have one life cycle once it goes, do not come
back again” he said” but if we invest in social business, it comes
back and it revolves and revolves”.
The Partner for Safe, Sensible & Sustainable Microfinance
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The Partner for Safe, Sensible & Sustainable Microfinance
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2012/13
Regional Annual Review
Workshops of Partner MFIs
recommendations for resolving the problems and
RMDC organized four regional annual review
improve the system of microfinance and deliver
workshops for its partner MFIs, in four different
quality services to the target families.
development regions. The main objective of the
workshops was to review the progress of partner
MFIs of FY 2068-69, give them an opportunity to
share good and bad experiences with each
other and jointly sketching better strategies and
approaches to solve problems, enhance quality
of microfinance program and make remarkable
progress.
fixed responsible authority for the same. At the end,
each of the workshop came up with a pledge to
The workshops had followed new approach of
progress presentations. Each of the participating
MFI team had visited a peer MFI and studied its
operations critically. The team had reviewed its
progress and achievements and also identified
innovations and strategies of the concerned
MFI and presented their finding in the forum.
This approach had been widely hailed by the
The Eastern Regional Annual Review Workshop was
participants and opined that it had opened
held in Biratnagar during November 9-10, 2012. The
their inner eyes and helped to realize their
workshop was attended by 42 participants from 12
own
partner MFIs from Eastern Development Region.
presentations, they had highlighted the strengths
The Central Regional Review Workshop was held
and weakness of the MFI visited and presented
in Kathmandu during November 22-23, 2012 and
their lessons learnt from the visits. The participants
had witnessed 26 participants from 10 partner MFIs
of the MFIs which had been assessed by the peers
of the Central Development Region. Similarly the
also had motivated and had realized their short
Western Regional Annual Review Workshop was
comings and vowed to take corrective measures.
organized in Pokhara during September 14-15,
2012, which was participated by 35 participants
from 13 MFIs of Western Development Region.
Similarly, the Regional Annual Review Workshop
for the Mid & Far Western Region was held in
Nepalgunj on September 27- 28, 2012, which was
attended by 46 participants from 18 partner MFIs.
All
shortcomings
the
workshops
and
had
weaknesses.
been
In
chaired
the
by
Mr. Shankar Man Shrestha, Chief Executive Officer
of RMDC. Senior officials of RMDC participated as
the facilitators. The RMDC officials had led them
to widely discuss on the issues of microfinance
and sensitized them to avoid multiple financing
and over indebtedness of clients. Mr. Shrestha
The workshops were attended by Board Members
had emphasized on the need for lending to the
and CEOs of the partner MFIs. The participants
poorest, lending right amount of loan based on
made identifications of problems and issues, which
clients’ need and capacity and avoid clients
were discussed in groups and each group made
poaching and multiple lending resulting in over
indebtedness of clients. He also urged the MFIs
to visit the doors of the clients and ensure that
the clients’ socio economic conditions are being
improved.
The workshops concluded with way forward
to be followed by all participating MFIs. All the
participating MFIs vowed to bind by the jointly
outlined way forward and contribute for the safe,
sensible and sustainable microfinance operation
in Nepal.
37
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Training on Internal Audit
RMDC organized training on Internal Audit for the
members of the Account Committees of its partner
cooperatives. The training was held in Kathmandu
from June 19-20, 2013, and was attended by 17
participants from 7 partner cooperatives.
The main objectives of the program were to explain
the participants the duty, role & responsibility of the
account committee and its members, to provide
them theoretical and practical knowledge & skill
audit, risk management, financial indicators, fraud
management etc.
During the closing ceremony, CEO of RMDC Mr.
Shankar Man Shrestha distributed certificates
to the participants. In his remarks, Mr. Shrestha
highlighted the importance, role & responsibility
of account committee for the healthy growth of
cooperatives. He also urged the participants to
apply the knowledge and skill gained from the
training in their own institutions.
on internal audit, to enable them to conduct
internal audit and prepare internal audit report
independently in their organizations. The resource
persons of the training were Mr. Roop Bahadur
Khadka, Manager of RMDC and Mr. Roshan
Kumar Adhikari, Training Consultant to CPI project.
The major contents of the training were role &
responsibility of account committee, concept and
scope of internal audit, internal audit vs external
Box 7: Way Forward of Annual Review Workshops
1.
Accord top priority to unserved destitute families in the extension of microfinance services,
2.
Formulate and implement graduation of micro credit clients to promote them as entrepreneurs.
3.
Initiate microfinance expansion in new areas only after market survey.
4.
Educate employees and members on disadvantages of multiple lending.
5.
Expend a certain portion of profit of MFIs for capacity building and other welfare program of clients.
6.
Upgrade products and services to clients regularly on the basis of feedback from them.
7.
Develop and implement proper working strategy for improvement in quality of centers/ units/ groups.
8.
Develop and implement proper action plan to increase borrowers to members ratio.
9.
Organize public audit in the VDCs under MFIs jurisdiction to get feedback from local communities, beneficiaries
and other concerned on the products and services provided to clients and educate them on organization’s
policy, procedures and progress.
10. Reduce multiple lending and unhealthy competitions through effective credit reporting system among MFIs.
11. Provide loan to a client only after making appraisal of his/ her loan requirement, capacity and track record to
avoid overindebtness.
12. Ensure effective and regular monitoring and follow up of clients.
13. Develop effective communication mechanism and build enhanced relationship and trust between management
and operation staff.
14. Establish a separate training department to provide required training to staff and clients in the MFIs having more
than ten thousand clients.
15. Conduct pre-group training (PGT) and refresher trainings to clients regularly to upgrade their knowledge of
microfinance operation.
The Partner for Safe, Sensible & Sustainable Microfinance
38
Annual Report
2012/13
and taken them to the field for practical exercise
of credit appraisal of microenterprise at Manushi
Nepal, a microfinance NGO at Kathmandu. After
the field visit, on the next day, the participants
made group presentations about their field
experiences.
The closing session of the training was chaired
by Mr. Shankar Man Shrestha, CEO of RMDC. Mr.
Shrestha stressed that loan must be provided on
the basis of credit need and capacity of a client
Training on Credit Appraisal of
Microenterprise
RMDC
organized
a
training
program
on
to utilize loan and the cash flow of the project
concerned. He said haphazard lending should be
stopped. At the end of the program Mr. Shrestha
distributed the certificates to the participants.
Credit Appraisal of Microenterprise Loan for its
partner cooperatives. The program conducted
in Kathmandu from April 16-18, 2013. It was
participated by 25 officials from 25 partner
cooperatives. The resource persons of the training
were manager duo of RMDC, Mr. Pritha Bahadur
Thapa and Mr. Roop Bahadur Khadka.
The objective of the training was to provide
participants with knowledge & skill on credit
appraisal of microenterprise loan. The major
contents of the training were principles of lending,
lending procedure & loan limit, methods of
individual lending, advantage & disadvantage
of individual lending, process of credit appraisal,
analysis of enterprise, cash flow, collateral etc.
The participants were divided into four groups
39
The Partner for Safe, Sensible & Sustainable Microfinance
Interaction with Prospective
Cooperatives under CIP Project
RMDC
organized
program
with
four
one
potential
day
interaction
cooperatives
under
Community Irrigation Project (CIP), in four different
cities. The objective of the program was to share
the status of cooperatives among the concerned,
interact on the role of cooperatives on poverty
alleviation, disseminate the objectives laid by CIP
project, communicate about RMDC, explain the
importance of cooperative standards for effective
operation and management of cooperative,
identify problems and solution measures for
cooperatives, share each other’s experiences and
formulate the way forward.
Annual Report
2012/13
The first interaction program was held in Bhairahawa
experiences, issues and challenges they have
on 8 August 2012. The program was attended by
faced and ways the problem have been solved.
37 participants from 13 cooperatives based on
Dang and Kapilvastu districts. Similarly the second
interaction program was held in Nepalgunj on
26 September 2012, which was participated by
57 participants from 21 cooperatives based on
Kailali, Kanchanpur, Bajhang, and Doti districts.
Likewise the third program was organized in Dang
on May 20, 2013. The third interaction program
was attended by 41 officials from 14 cooperatives
based on Rukum, Rolpa, Salyan, Pyuthan and Kailali
districts including two officials from Community
Irrigation Project district office Dang. The fourth or
the last interaction was held in Kohalpur on May
24, 2013, which was attended by 24 officials from
9 cooperatives based on Kailali, Kanchanpur,
Kapilvastu, Dang and Doti districts.
During the program facilitators from RMDC made
presentation about RMDC, its objectives, products
and services. Similarly, they also made presentation
on cooperative standard required to be followed
by Cooperatives.
In the concluding session, officials from RMDC
presented the list of problems laid out in the
presentations from participating cooperatives and
they also discussed about the solution measures
related with the problems. The programs were
ended with way forward, which were vowed to be
followed by all the participants.
Interaction with SFCLs
RMDC organized three interaction programs with
First two programs were facilitated by Mr. Ram
the officials of the Small Farmer Cooperatives
Dayal Rajbanshi, Senior Manager of RMDC and Mr.
(SFCLs), on role of SFCLs on poverty reduction. The
Pritha Bahadur Thapa & Mr. Roop Bahadur Khadka
main objective of the program was to explore and
duo Manager of RMDC. Remaining two programs
exchange problems, challenges, experiences and
were facilitated by Mr. Roop Bahadur Khadka
new innovations and to discuss on the contribution
Manager of RMDC and Mr. Rosan Kumar Adhikari,
and role that can be played further by SFCLs on
Training Consultant of RMDC.
poverty reduction.
In the programs, each participating cooperatives
First interaction program was held in Bhairahawa
made their presentation on progress status,
on 6 and 7 August, 2012, in which 58 officials
The Partner for Safe, Sensible & Sustainable Microfinance
40
Annual Report
2012/13
from 24 SFCLs attended the program. Similarly
second interaction program was held in Pokhara
on 12 September 2012, in which 15 participants
from 5 SFCLs attended the program. Likewise the
third program was organized in Nepalgunj on
24 September 2012, which was attended by 15
participants from 5 SFCLs.
All the program were coordinated by Ms.
Annanpurna Shrestha, Manager of RMDC and
chaired by Mr. Shankar Man Shrestha, CEO of
RMDC. Mr. Ram Dayal Rajbanshi, Senior Manager
of RMDC and Mr. Pirtha Banadur Thapa, Manager
of RMDC served as facilitators in the programs.
During the program, after the opening session,
each participating SFCL made their presentation
highlighting their performance status, problems
and challenges they have faced, the initiatives
Onsite Technical Assistances
to MFIs
In addition to the classroom training, workshops
and exposure visits, RMDC provides onsite technical
assistance particularly to the start-up MFIs. The
main purpose of the technical assistance is to help
them establish essential microfinance operational
systems and procedures in their offices, and
develop required operational knowledge and
skills of their staff. The onsite consultancy services
are mainly given on: (i) maintaining accounts and
records, (ii) preparation of program reports and
financial statements, (iii) formulation of simple
business plan, and (iv)preparation of operational
manuals, etc. These programs have been found
extremely helpful for the beginner MFIs.
innovations they have adopted.
Capacity Building of MFI
Clients
Mr. Ram Dayal Rajbanshi, made presentation
RMDC offers financial and technical supports to
they have taken to solve the problem and new
about RMDC whereas Mr. Pritha Bahadur Thapa
its partner MFIs to organize need-based training/
presented different financial indicators and its
workshops/exposure visit programs for their clients
uses. In the interactive session, Mr. Thapa come up
in order to strengthen groups’ cohesion, improve
with the list of problems identified during individual
capacities of the members and upgrade their
organization’s presentations. Mr. Shankar Man
entrepreneurial as well as occupational skills.
Shrestha, CEO of RMDC discussed with participants
During the FY 2012-13, a total of 66,947 MFI clients
on the possible solutions of each of the identified
participated in different training, exposure visits
problems. All the programs approved the way
and interaction programs under the financial and
forwards which all the participants vowed to
technical supports of RMDC (see Annex II for the
follow.
detailed information on client training programs).
Figure 3: Annual Progress of MFI Client Training
80,000
No. of Clients
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2008-09
2009-10
2010-11
2011-12
2012-13
39,839
46,616
54,246
55,110
66,947
■ No. of Clients
41
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
The annual progress trend of the MFIs’ client
training program of last five years has been shown
on Figure 3.
The major MFI clients training programs completed
during the fiscal year are mentioned below.
a)Financial Literacy Training
In the microfinance operation, before enrolling
the members into the group, financial literacy
training also called pre-group training is provided
to the member. During the training, members are
given orientation about microfinance program,
information on different loans and savings products
and its features, rules and regulations they have
to comply as a microfinance client. They are also
taught to write their name which helps to increase
their self confidence. RMDC is providing support
to partner organizations for conducting pre-group
training as well. During the fiscal year a total of 745
pre-group training were conducted, which were
attended by 17,964 members.
b)Refresher Training
RMDC from the beginning of its operation has been
supporting its partner organizations financially and
technically to conduct refresher training for their
members. Refresher training is provided to the
existing members to review the microfinance rules
and regulations and reinforce them to comply.
with the center related issues and problems.
During the fiscal year, with supports from RMDC,
173 center chiefs workshops were organized by
partner organizations, in which altogether 12,062
center chiefs had participated.
d)Skill Development Trainings
During the fiscal year 2012-13, with the funding
supports of RMDC, the partner organizations
organized 52 skill development training programs
for their clients. All together 1540 members
benefitted from those training programs. The major
types of skill development training organized
during the year were on subjects such as animal
husbandry, vegetable farming, pig/goat rearing,
poultry rearing, pickle making, candle making,
incense-stick making, mushroom farming, soap
making, etc.
Refresher training has helped to energize members
to maintain center discipline as well as financial
discipline. With the financial support of RMDC,
partner organizations organized a total of 1,462
refresher trainings during the fiscal year 2012-13, in
which 35,151 clients had participated.
c)Center Chiefs Workshop
Generally MFIs organized center chiefs workshops
once in a year in each branch to have interaction
among center chiefs and between MFIs and
center chiefs. These forum have been used for
sharing experiences and learn from each other.
These workshops were fruitful to develop leadership
quality of center chiefs and make their role
effective in managing their centers and dealing
The Partner for Safe, Sensible & Sustainable Microfinance
42
Annual Report
2012/13
Growth and Performance of
Partner Organizations
As
a
wholesale
lending
organization
for
microfinance, RMDC has been partnering with
microfinance
development
development
banks
(DBs)
banks
(MFDBs),
implementing
microfinance programs, cooperatives (COOPs)
and financial-intermediary NGOs (FINGOs). It had
started partnership from July 2000 with 2 MFIs and till
mid-July 2013, the total no of partner organization
had reached 136, out of which 7 are MFDBs, 10 DBs,
24 FINGOs and 95 cooperatives. Till the date, the
POs have been providing microfinance services
in 67 districts out of 75 districts of the country.
The composition of partner organization and the
growth in number of RMDC’s partners from the
beginning till July 2013, is depicted in the Figures 4
and 5 respectively.
Figure 4: Composition of RMDC’s Partner Organizations
10
DBs
7
MFDBs
24
FI-NGOs
95
COOPs
43
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Figure 5: Growth in Number of RMDC’s POs
140
120
100
80
60
40
20
0
Jul
00
Jul
01
Jul
02
Jul
03
Jul
04
Jul
05
Jul
06
Outreach
of
Jul
08
Jul
09
Jul
10
Jul
11
Jul
12
Jul
13
areas of the country. The outreach expansion in
With the increment in the number of partner
organizations
Jul
07
RMDC
and
their
scale
of
operation, the number of members and borrowers
hills and mountainous districts was low due to poor
infrastructure, less economic activities, scattered
and sparse population.
served by them also has been increasing every
The average annual growth of members and
year. Till mid-July 2013, the partner organizations
borrowers of the POs in FY 2012/13 was 12 percent
of RMDC had been providing microfinance
and 11 percent respectively. All most all members
services to 1.49 million members through their 876
of the POs are women but SFCLs have higher
branch offices. Among the 1.49 million members
percentage of male members. On an average,
1.03 million were borrowers. Most of the members
the borrowers-to-members ratio among the POs is
and borrowers of the POs were from terai & plain
69 percent.
Figure 6: Growth of Members & Borrowers POs
1600
1400
No. in Thousand
1200
1000
800
600
400
200
0
Jul
00
Jul
01
Jul
02
Jul
03
Jul
04
Jul
05
Jul
06
Jul
07
Jul
08
Jul
09
Jul
10
Jul
11
Jul
12
Jul
13
The Partner for Safe, Sensible & Sustainable Microfinance
44
Annual Report
2012/13
Figure 7: Growth of Outstanding Loan of the POs
Rs. In Million
25,000
20,000
15,000
10,000
5,000
0
Jul
00
Jul
01
Jul
02
Jul
03
Jul
04
Jul
05
Jul
06
Jul
07
Jul
08
Jul
09
Jul
10
Jul
11
Jul
12
Jul
13
Loan Portfolio
loan for their graduated clients, who required little
Providing financial access to the poor to their
Some POs have also introduced housing loan, bio
doorstep and help them to get out of the poverty
trap is the main mission of an MFI. Partner MFIs of
RMDC are serving their clients with various types of
client friendly loan products to fulfill the wide range
of their credit needs. The microfinance members
use the loan for a numbers of income generating
activities, such as retail grocery, poultry farming,
fruit and vegetable trading, fruits and vegetable
farming, cycle repairing, tailoring, shoe making,
tea shop, livestock raising, etc. The most common
type of loan products of MFIs to clients are general
loan, seasonal loan and emergency loan. Many
MFIs have already introduced micro-enterprise
bigger size loan for their micro-enterprise project.
gas loan, education loan, foreign employment
loan as well.
As the number of partner organizations and their
operations are increasing in increasing trend, total
outstanding loan portfolio of the POs with their
borrowers is also increasing fast and reached Rs.
23.46 billion as of mid-July 2013, with an annual
increment of 36 percent in the FY 2012/13. Most of
the POs have maintained good portfolio quality.
On an average, arrear rate of the POs remained
less than 2 percent throughout the period. The
growth trend of the POs’ outstanding loan is shown
in the Figure 7.
In the microfinance program loan size of the
borrowers gradually increased as the borrowers
passed through different loan cycle. At the same
time many POs have increased the initial loan size
and also introduced some new loan products with
bigger size loan. Due to all these factors, every
year there has been gradual increment in the
outstanding loan of the POs per borrower. By the
end of the FY 2012/13, the average outstanding
loan of the POs per borrower reached Rs. 22.8
thousand which was only Rs. 4 thousand as of July
2000.
Up-to FY 2007/08, growth rate of average
outstanding loan was slow and after that the
45
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Figure 8: Trend of Outstanding Loan per Borrower
25,000
20,000
15,000
10,000
5,000
0
Jul
00
Jul
01
Jul
02
Jul
03
Jul
04
Jul
05
Jul
06
Jul
07
Jul
08
Jul
09
Jul
10
Jul
11
Jul
12
Jul
13
growth rate was increasing in the increasing trend,
Pension savings, Education savings, Festival savings
which is portrayed in the figure 8.
are voluntary savings. Because of the MFIs’ savings
service, the habit of making savings among the
Members’ Savings
members has been inculcated.
Besides credit services, microfinance institutions
The members’ savings balance with MFIs has
been increasing every year due to increment in
also provide savings services to their members,
the number of members associated with the MFIs,
which is one of the main services provided by
introduction of the various types of members’
MFIs. Savings mobilization is one of the prominent
friendly long term savings by MFIs, increment in
sources of fund for MFIs and it is a process of assets
the income level and habit of saving among the
creation by the members for future needs and
members. As of mid-July 2013, the total member
enhancing their financial security. The partner
savings balance with the POs reached Rs. 12 billion
MFIs are accepting various types of compulsory
(see Figure 9) which was only 75 thousand as of
and voluntary savings from their members. Group
July 2000. The huge amount of members’ saving
savings and Center Fund savings are compulsory
balance indicates that the poor also can save.
savings whereas Personal savings, Child savings,
Figure 9: Trend of Clients Savings of RMDC’s POs
14,000
Rs.In Million
12,000
10,000
8,000
6,000
4,000
2,000
0
Jul
00
Jul
01
Jul
02
Jul
03
Jul
04
Jul
05
Jul
06
Jul
07
Jul
08
Jul
09
Jul
10
Jul
11
Jul
12
Jul
13
The Partner for Safe, Sensible & Sustainable Microfinance
46
Annual Report
2012/13
Figure 10: Trend of Savings Balance per Member
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
Jul
00
Jul
01
Jul
02
Jul
03
Jul
04
Jul
05
Jul
06
Jul
07
Jul
08
Jul
09
Jul
10
Jul
11
Jul
12
Jul
13
The saving balance of members has been
As mentioned earlier members’ savings is one
increasing every year, along with the increment
of the prominent source of fund for MFIs for on
of the savings balance per member. This shows
lending loan to the members. More than half of
that the savings capacity of the members also
the fund requirement of the MFIs for lending has
has been increasing year after year (See Figure
been fulfilled from their members’ savings.
10). The average savings balance per member of
percentage of members savings balance to
the POs as of mid- July 2000 was Rs.1.1 thousand
outstanding loan has reached 51% by the end of
which reached Rs. 8 thousand by the end of the
the FY 2012/13. Due to increment in the members’
FY 2012/13. The growth rate in the average saving
savings POs dependency on the borrowed fund
balance per members is 33%, in the FY 2012/13,
also has decreased to a large extent.
which is very encouraging.
Figure 11: Trend of Savings-to-Loan Outstanding Ratio in POs
55
50
45
40
35
30
25
20
Jul
00
47
Jul
01
The Partner for Safe, Sensible & Sustainable Microfinance
Jul
02
Jul
03
Jul
04
Jul
05
Jul
06
Jul
07
Jul
08
Jul
09
Jul
10
Jul
11
Jul
12
Jul
13
The
Annual Report
2012/13
Figure 12: Trend of Operational Self Sufficiency (OSS) of POs
OSS %
140
130
120
110
100
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
Fiscal Year
Operational Self-Sufficiency
the POs stands at around 60 percent. The staff
Except some newcomers, most of the POs of
after that it seems somewhat stable. As of mid July
RMDC have attained operational self-sufficiency
(OSS) in microfinance operation and most of them
are moving towards attaining the financial selfsufficiency (FSS) level. On an average OSS of the
POs stood at 127 percent in the fiscal year 2012/13
which was slightly higher than the last year.
productivity of POs was increasing till FY 2009/10,
2013, the staff productivity was on an average
314 members and 216 borrowers per staff (staff
includes all staff: from chief executives to field staff
and messenger). The outstanding loan per staff
was Rs. 4.93 million.
In case of field staff productivity, the average
number of members and borrowers per field staff
Staff Productivity
was 526 and 362 respectively at the end of fiscal
Partner organizations of RMDC are providing
year 2012/13. The average outstanding loan
employment to 4,757 persons in microfinance
amount per field staff was Rs. 8.26 million at that
operation among them 2,840 are field staff. The
point of time.
percentage of field staff-to-total staff among
Figure 13: Trend of Staff Productivity
of POs
Figure 14: Trend of Field Staff
Productivity of POs
550
340
500
290
450
240
400
190
350
140
300
Jul
03
Jul
04
Jul
05
Jul
06
Members per Staff
Jul
07
Jul
08
Jul
09
Jul
10
Borrowers per Staff
Jul
11
Jul
12
Jul
13
Jul
06
Jul
07
Jul
08
Jul
09
Members per F. Staff
Jul
10
Jul
11
Jul
12
Jul
13
Borrowers per F. Staff
The Partner for Safe, Sensible & Sustainable Microfinance
48
Annual Report
2012/13
Box 8: Performance of RMDC’s Partner Organizations at a
Glance
As of mid-July 2013
Outreach
Total no. of members
1,492,947
Total no. of borrowers
1,027,924
Total members' saving balance (Rs. in million)
12,015
Total loan outstanding (Rs. in million)
23,465
Total Overdue loan (Rs. in million)
287
Staff Productivity
No. of members per staff
314
No. of borrowers per staff
216
Outstanding Loan per staff (Rs. in million)
4.93
No. of members per field staff
526
No. of borrowers per field staff
362
Outstanding Loan per field staff (Rs. in million)
8.26
Branch Productivity Ratios
No. of members per branch office
1,704
No. of borrowers per branch office
1,173
Outstanding Loan per branch office (Rs. in million)
26.79
Loan Portfolio Quality
Current Repayment Rate
98%
Cumulative Repayment Rate
99%
Past due Rate
1.2%
Profitability
Interest Yeild on Portfolio
Operational Selfsufficiency
20%
127%
Others
Borrowers Rate
Loan outstanding per borrower (Rs.)
Savings balance per member (Rs.)
Savings to Loan Outstanding
49
The Partner for Safe, Sensible & Sustainable Microfinance
69%
22,828
8,048
51%
Annual Report
2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Monitoring & Follow-up of
Partner MFIs
Importance of monitoring
each partner MFIs, which linked to the areas of high
Monitoring of partner MFI means the routine collection
and the deficiencies noted in the previous checks.
and analysis of various information of their operations.
Moreover, POs are segregated on the basis of their
Generally monitoring can be divided into two parts,
size, existing internal control system, complexity and
off-site and on-site. Off-site monitoring refers to the
risk profile. RMDC’s monitoring involves examining
monitoring of an MFI’s performance without actually
different operational activities followed by the
visiting the location of the operations, while on-site
indicators logically analyzed on the basis of their
monitoring requires direct visits to a branch or clients
status. The last stage of monitoring function is follow-
of an MFI. The purpose of monitoring and follow-up
up of findings and recommendations made by the
is to review whether the actions have taken place
supervisors.
in conformity with the stated plan and programs. It
Generally, the Centre’s monitoring starts with the visit
enables the management to assess the progress
of both quantitative and qualitative aspects of the
program. Regular monitoring and follow-up provide
timely feedback to the management and the
concerned for making appropriate decisions. POs
(Partner Organisations) of RMDC provide collateral
free loans to the poor families. Thus, monitoring
and follow-up plays a crucial role to reduce and
minimize different operational risks. It also reduces
the cost of lending and misuse of loans that leads to
delinquency. Effective monitoring system helps MFIs
to improve its performance. It detects areas such
as timely implementation plan, checking shortfalls
and irregularities, minimizing mistakes, building staff
capacity, raising staff consciousness, maintaining
performance standards, good governance and
self regulation. Monitoring and follow-up of POs is
considered as a high priority activity of the Centre.
to the branch office or group of an MFI and concludes
with sharing and discussion with field staff and
members of management and Board of Directors of
the concerned PO. RMDC’s supervisors give priority to
visit centre or group meeting and the clients and their
enterprises at first. At operational level main areas
of monitoring are selection of the group member,
quality of pre-group training and group meeting,
savings collections, loan proposal and approval
procedures, disbursement of loan, loan utilization,
impact on client, errors, fraud, bank reconciliation,
passbook and collection sheet, interest calculation
etc. The supervising officer monitors the activities
of field worker and group level activities and note
down the status. At the branch level the supervisor
examine
accounting
transactions
and
analyse
various financial ratios, like portfolio quality and selfsufficiency, operational efficiency, profitability, PAR,
Monitoring Approach of
RMDC
YOP etc.
Supervision Department of the Centre is responsible
on the quality and appropriateness of the board
for carrying out the monitoring of POs activities. It has
developed its own system for monitoring its POs on the
basis of outcome of various workshops and trainings,
consultation with different department. Supervision
Department annually prepares monitoring plan for
51
risks identified through the risk assessment process
The Partner for Safe, Sensible & Sustainable Microfinance
During the POs visit the supervisor assesses the
governance and strategy of POs, which depends
composition, its role and overall organizational
strategy. Management system is rated on the basis
of quality of human resources and the strength of
accounting and management information. The
performance of the POs on staff productivity and
Annual Report
2012/13
ensuring compliance is also assessed. Under financial
performance evaluation, aspects like repayment
performance, asset quality, liquidity and profitability
are thoroughly assessed. He also identifies weaknesses
and training needs and makes recommendations
accordingly.
Risk based monitoring and
supervision framework
The
risk
based
monitoring
and
supervision
methodology reflects a continuous and dynamic
process. RMDC has adopted risk based monitoring
framework and it has own methodology for this
purpose. The main objective of the framework is to
evaluate the POs risk levels and trends associated
with current and planned activities, assessing the
management processes to identify, measure, monitor
and control risks. RMDC’s monitoring procedure
assesses the POs financial conditions, compliance with
applicable laws and regulations. In post monitoring
phase RMDC communicate findings, directives, and
recommendations in a clear and timely manner, and
obtain commitments by the Board of directors and
management to correct the deficiencies. It is vital
to make follow-up on implementation of corrective
actions to ensure that all the deficiencies are rectified
on time and in a right manner.
During the follow-up the implementation of the
recommendations made to the POs thoroughly
reviewed and analyzed. The concerned officer at
supervision department stay in touch with officials of
the concerned partner MFIs and ask them for timely
submission of response letter to the Centre. On-going
critical issues of partner MFIs are regularly reported to
the CEO of the Centre.
Impact of RMDC’s
Monitoring, Supervision and
Follow-up system
The impact of the RMDC’s monitoring and
supervision system is immense and multidimensional. It has contributed a lot to maintaining
the near hundred percent recovery rate by the
partner MFIs. It has contributed in professional
assessment of the risk involved in lending to the
clients, which is helpful in lowering the appraisal
and transaction costs. It has helped to increase the
creditworthiness of the MFIs and sensitizes the staff
on the best practices of microfinance operations.
Monitoring system of the Centre facilitates about
how the partner MFIs can balance between
its social mission and commercial mission. Due
to effective monitoring and follow-up from
the Centre institutional governance, office
management, portfolio quality, accounting system
of the POs have improved considerably. Their own
monitoring the internal control mechanism is being
strengthened and corporate governance and
management quality, client supervision in many
POs have improved. The member of the Board
of Director, senior managers and field staff and
even clients of the POs are now more aware and
accountable to their roles and responsibilities. As
the industry strives to retain its relevance in the face
of big challenges, the unique aspect of RMDC’s
monitoring and follow-up system is to enlighten
the microfinance community on ethics and moral
values for enhancing the image and reputation of
overall microfinance industry in the country.
The Partner for Safe, Sensible & Sustainable Microfinance
52
Annual Report
2012/13
Projects under Implementation
RMDC had successfully completed projects such
as Rural Microfinance Project (RMP), Aus Aid
Project, Japanese Fund for Poverty Reduction
(JFPR) Project, Community Livestock Development
Project (CLDP) within the stipulated time frame. At
present the Centre is implementing two projects
Community Irrigation Project (CIP) and YUWAccess
Project. The brief highlights of these on-going
projects are as follows:
Community Irrigation
Project (CIP)
The Community Irrigation Project (CIP) is a
grant project of US$26.4 million from the Asian
Development Bank (ADB), which was signed
between the Government of Nepal (GON) and
the Asian Development Bank (ADB) on February 8,
2011. The subsidiary agreement between GON and
the Rural Microfinance Development Centre Ltd.
(RMDC) was signed on April 19, 2011. RMDC is the
implementing agency for Microfinance Training
Component of Community Irrigation Project. The
grant budget for this component is US$540,000. The
objective of the Community Irrigation Project is to
develop or improve small-scale irrigation systems
in 12 districts in Nepal through a community-driven
process targeted to the poor, women, and other
disadvantaged groups.
Under the Community Irrigation Project the
microfinance training component aims to facilitate
53
The Partner for Safe, Sensible & Sustainable Microfinance
access to micro-credit for agricultural inputs,
irrigation equipment, and irrigation infrastructure
operation and maintenance by enabling local
microfinance organizations to offer savings and
credit services to the project areas. The project
component includes; (i) identification of new MFIs
(Microfinance Institutions) in the project districts, (ii)
capacity building and strengthening of potential
MFIs, (iii) technical assistance to MFIs, (iv) provide
training, organize interaction programs and
exposure visits for MFIs.
Under the CIP project, RMDC has identified 127
potential cooperatives by the end of FY 2012/13.
RMDC organized exposure visit to successful MFI for
identified MFIs to enhance their knowledge about
microfinance operation. In total 31 board members
representing 11 MFIs participated in exposure
visits. After the exposure visit, the participants
are found very positive and they are willing to
improve the governance and financial operation
of their respective organizations. Furthermore,
RMDC arranged four interaction programs for 55
MFIs under which 157 board members of MFIs did
participate in the programs. During this period,
RMDC has also conducted 4 interaction programs
for water user farmers. The interaction program was
attended by altogether 91 participants, including
WUA members, representatives of CIP and MFIs.
Major subject matters of the interaction program
were saving products, loan products, cooperative
membership, roles and responsibilities of WUA
members etc. These interaction programs were
found to be very fruitful for learning importance
of savings and credit, cooperative management,
role of cooperative in socio-economic activities,
process of CIP operation etc. Upto the end of the
FY 2012/13, altogether 16 MFIs have applied for
the loan, among them one MFI has been able to
get loan approved and appraisal procedure is ongoing for remaining MFIs.
Annual Report
2012/13
Monitoring of MFIs is one of the major functions
of RMDC, so along with regular checks and
verification, it is also a kind of training and onsite consultancy to MFIs under CIP project. RMDC
monitors MFIs through on-site visit to MFIs office and
beneficiaries where operation and activities are
checked and confirmed they are performing as
per the prescribed norms. Under off-site monitoring
RMDC regularly obtain progress reports from MFIs
which are compiled and analyzed regularly to
assess the progress achieved by each of the MFI.
Progress of Community Irrigation project looks
satisfactory in terms of both quantity and quality of
achievement.
YUWAccess Project
YUWAccess is a project funded by European
Union (EU) and jointly implemented by PlaNet
Finance Nepal, Rural Microfinance Development
Centre Ltd. (RMDC) and the Federation of Nepal
Cottage & Small Industries (FNCSI). The project is
being implemented in three districts of Nepal via.
Ramechhap, Dolakha and Dang. The project was
started on May 2011 and will end on May 2014. The
specific objective of the project is to upgrade and
strengthen technical and managerial capacities
of Nepalese Technical and Vocational Education
Training Providers (TVETPs) of the targeted districts
so that the unemployed youths of the project
districts will obtain vocational training and then get
job in the country or abroad. If they could not get
job opportunities, they will be given the necessary
entrepreneurial and occupational skills on Micro
and Small Enterprises (MSE) and loan will be
provided through the local financial institutions to
start or expand their own businesses. The MSE loan
products designed and adopted by the financial
institutions (FIs) will be friendly to the targeted
unemployed youths to operate new or already
established small and microenterprises.
districts and establish counseling and placement
unit in each project district which will be a meeting
point for the employer and employment seeking
youths.
The total grant amount to be received by RMDC
during the project period is EUR 1,02,287 which
includes a revolving fund of EUR 56,250. RMDC is
involved in capacity building of the microfinance
institutions (MFIs) and in providing them wholesale
funds for on lending to the target beneficiaries.
The ultimate beneficiaries of the Project are the
unemployed or the very low income women
and the youths from the vulnerable communities
(Tharus, Tamangs, Magars, Kamis, Thamis, Muslims
and Dalits) in the Project districts-Dolakha,
Ramechhap and Dang. Similarly, the Project also
aims to improve capacity of local MFIs to ensure
the availability of financial services to the general
public in the Project districts.
Under the project period RMDC identified and
surveyed 181 Cooperatives providing microfinance
services in three project districts. District level
workshops were organized in each district to
disseminate the findings of the survey. On the basis
of survey and project need, RMDC prepared a
Micro and Small Enterprises (SME) loan manual
for Cooperatives and MFIs. RMDC organized
workshops in three project districts to interact with
potential Cooperatives and MFIs about their role in
the project and process for partnering with RMDC.
Altogether Five Cooperatives/MFIs became
partner of RMDC and RMDC disbursed them Rs.
12 million for MSE lending. RMDC has planned
to organize training to cooperatives/MFIs staff in
each district on MSE loan and also a workshop with
the partner cooperatives of the project district.
Planet Finance is mainly involved in promoting
vocational skills and strengthening the capacity
of Technical and Vocational Education Training
Providers (TVETPs), RMDC is mainly involved in
providing youth friendly microfinance services
through technical assistance and wholesale
lending, whereas FNCSI is responsible for selecting
potential unemployed youths of the respective
The Partner for Safe, Sensible & Sustainable Microfinance
54
Annual Report
2012/13
International Cooperation and
Exchange Program
RMDC
has
been
conducting
numbers
of
The participating officials were from the Palli-
international trainings, exposure visits to the MFIs
Karma
board members, officials to learn and observe best
partner organizations. PKSF is a wholesale lending
practices in other countries. Likewise MFIs officials
organization in Bangladesh. The purpose of the
of other countries also have great deal of interest
visit program was to observe and get acquainted
to have exposure visits in Nepal. As a result officials
with the ongoing practices of microfinance
of the various countries have already visited RMDC
in Nepal. Among the three visit programs two
and its partner MFIs. These types of exchange
programs were coordinated by Mr. Pritha Bahadur
visit and training programs provide an ample
Thapa and Ms. Annapurna Shrestha, managers
opportunity to improve microfinance sector.
of RMDC and third program was coordinated by
In the FY 2012-13, RMDC organized following
programs for foreign delegates and RMDC
Officials.
Sahayak
Foundation
(PKSF)
and
its
Ms. Annapurna Sharestha and Mr. Roop Bahadur
Khadka, managers of RMDC.
The first exposure visit program was held from
March 29 - April 5, 2013 for a team of thirteen
55
Bangladesh Microfinance
Official’s Visits to RMDC and
its Partner MFIs
officials. The team comprised of six officials from
RMDC organized three exposure visit programs
Manager of PKSF.
for the microfinance officials from Bangladesh.
Similarly the second program was organized from
The Partner for Safe, Sensible & Sustainable Microfinance
PKSF and seven officials representing their seven
partner organizations. The team was led by Mr.
Akond Mohammad Rafiqul Islam, Deputy General
Annual Report
2012/13
May 26 - June 2, 2013, which was attended by
fourteen officials. The team, comprising five officials
from PKSF and nine officials from their partner
organizations was led by Mr. Dilip Paul, Assistant
General Manager of PKSF.
At the end of the program, each of the teams
Likewise the third visit program was held from
June 23-30, 2013. It was attended by nine officials
including four from PKSF and five from its partner
organizations. Mr. Md. Abul Kashem, Deputy
General Manager of PKSF was the leader of the
third team.
of microfinance and high level of discipline
On the first day of the visit program, the teams
were given a brief introductory presentation at
the RMDC office about the microfinance sector
in Nepal focusing on microfinance outreach, and
problems & challenges. They were also briefed on
RMDC’s role in the development of MF sector in
Nepal.
During their visit, the teams visited head offices as
well as branch offices of various partner MFIs of
RMDC, where they interacted with the field staff,
branch manager as well as senior officials about
the microfinance modality and practice. During
the visit, they also observed the center meetings of
those MFIs and had interaction with microfinance
clients about microfinance and their projects
and had also visited some micro-enterprises of
the clients. The teams were overwhelmed by the
reception and cooperation they received during
the visit.
made a separate presentation on their observation
and findings in a session chaired by Mr. Shankar
Man Shrestha, CEO of RMDC. According to them,
they were impressed with the operational process
among the MFI field staff and clients. They
observed that the savings to loan ratio was high
among the clients and the clients were utilizing
their loan amounts in income generating activities.
However, they suggested that the microfinance
programs should deepen their services down to
the poorest of the poor and adequate monitoring
& supervision needs to be carried out. The teams
left Kathmandu with new learning experiences
and good memories of Nepal microfinance.
RMDC Partner MFIs’ Officials
Visits to MFIs in Bangladesh
RMDC organized two exposure visit programs to
Microfinance Institutions in Bangladesh for the
officials of its partner MFIs.
The visit programs
were from March 20-29 and April 22- May 1, 2013.
The programs were facilitated by the Integrated
Development Foundation (IDF), a well known
microfinance NGO, in Bangladesh. The objective
of the visits was to get acquainted with the
microfinance operation, process and practices in
Bangladesh.
The Partner for Safe, Sensible & Sustainable Microfinance
56
Annual Report
2012/13
The first team comprised of eight board members
from seven partner MFIs namely Mr. Narendra
Tharu, UNYC Nepal, Bardiya, Mrs. Sharada Sharma,
NWCSC, Dang, Mr. Shyam Kant Chaudhary,
Mahuli Community Development Center, Saptari,
Mr. Padmanath Sharma and Ms. Sita Sharma,
CYC Nepal, Baglung, Mr. Shyam Kumar Shrestha,
Srijana Community Development Center, Siraha,
Mr. Min Prasad Gurung, Muktinath Bikas Bank Ltd.,
Pokhara, Mr. Upendra Prasad Olee, Sahara Nepal
Savings and Credit Cooperative Society, Jhapa
and two officials from RMDC Mr. Ram Dayal
Rajbanshi, Senior Manager and Mr. Govinda
Prasad Paudel officer. The team was coordinated
by Mr. Rajbanshi, Senior Manager of RMDC.
Likewise the second team comprised of seven
officials from six partner MFIs namely Ms. Aasmani
Chaudhary and Mr. Shogat Bir Chaudhary,
Rural Women Development Centre, Dang, Mr.
,Chhimek Laghubitta Bikas Bank Ltd., Kathmandu
and two officials from RMDC Mr. Pritha Bahadur
Thapa, Manager and Mr. Bharat Kumar Singh,
officer. The team was coordinated by Mr. Thapa,
Manager of RMDC.
uring the visit, the teams visited center meeting,
branch office of Grameen Bank, IDF, ASA and
BURO. The participants have observed and
discussed
about
operational
modality,
MIS,
accounting, loan and saving products and
operational & financial efficiency of the MFIs.
They also visited and interacted with the clients
of those MFIs. The interactions on various matters
with the clients, branch staff and officials of these
institutions have been insightful and informative.
The major places of visit were Dhaka, Chittagong,
Cox’s bazaar and Bandarban.
Bishnu Bhakta Sharma, Kisan Bahuuddeshiya
Sahakari Sanstha Ltd., Kailali, Mr. Purna Bahadur
Chand, Udayadev Multipurpose Cooperative
From the study visit, the participants particularly
Ltd., Kanchanpur, Mr. Ash Narayan Chaudhary,
successful and sustainable. They found that even
FORWARD, Sunsari, Ms. Shanti Devi Dhakal, Mahila
57
Upakar Manch, Banke, Mr. Bed Nath Adhikari
The Partner for Safe, Sensible & Sustainable Microfinance
learned that close and regular monitoring of
clients is essential to make a microcredit program
branch manager of the MFIs spends most of their
Annual Report
2012/13
time (around 80% of their time) in the field. Hundred
Adhikari, Srijana Development Centre, Pokhara
percent verification of clients mostly before loan
and two officials Mr. Tirtha Ratna Konajo, Senior
approval is found in almost all MFIs. Because of
Manager and Ms. Annapurna Shrestha, manager
these approaches, even larger microenterprise
of RMDC.
loans are provided to clients without collateral.
Flexibility and creativity (innovations) are other
features of the Bangladeshi microcredit program.
Staffs of the MFIs are found well oriented, trained
and motivated to their jobs.
Chief Executives of RMDC’s
Partner MFIs Visit to MFIs
in Indonesia
RMDC organized an exposure visit program for the
Nepalese Microfinance Institutions to Indonesia,
from June 17 to 22, 2013. The purpose of the visit
program was to observe and get acquainted
with the ongoing practices of microfinance
in Indonesia. The visit was coordinated by the
Microfinance Innovation Center for Resources and
Alternatives (MICRA), an Indonesian development
agency for microfinance.
The team of ten
officials, comprised of eight
chief executives from eight MFIs namely Mr. Mani
Kumar Arjyal, Nerude Laghubitta Bikas Bank Ltd.,
Biratnagar, Ms. Bhagbati Chaudhary, FORWARD,
Sunsari, Mr. Yogendra Mandal, Jeevan Bikas Samaj,
Biratnagar, Mr. Mahendra Kumar Giri, Sahara
Nepal Cooperative Society Nepal, Jhapa, Mr.
Prabhu Narayan Chaudhary, Mahuli Community
Development Centre Ltd., Saptari, Mr. Chandi
Prasad Sharma, CYC Nepal, Baglung, Ms. Shova
Bajracharya, Manushi, Kathmandu, Mr. Bir Bahadur
The team visited, Amartha, a cooperative at
Bogor; Bank Indonesia, the central bank of
Indonesia, in Jakarta; BPR Citra Artha Sedana, a
rural bank and BPR Supra Artapersada another
rural bank in Bangung. The organizations had
made presentations of their organizational history,
functions and activities. The team had fruitful
interactions with the presenters and also interacted
with the field staff as well as senior officials about
the microfinance modality and practice. During
the visit, the team observed the center meetings
of the MFIs and also had visited some microenterprises of the clients.
Indonesia as a fast moving country towards
economic development, microfinance programs
were found exciting by the visiting team. They said
“It was exciting to see all the clients maintaining
greenery around their homes and plantation of fruit
trees in their premises”. Another important point
the participants have noticed that clients were
able to maintain neat and clean homes though
the homes were small but the floor were surfaced
with the tiles. BPR Supra Artapersada, Bangung, a
rural bank presented with the information directly
derived from their software, they were able to
satisfy the queries of the participants instantly
accessing from the software database. The BPR
Supra is also providing microenterprise loan to the
police families on the collateral of their certificates
of appointments.
The Partner for Safe, Sensible & Sustainable Microfinance
58
Annual Report
2012/13
RMDC’s Board of Directors
Exposure Visit to MFIs and
Central Bank of Indonesia
program on Clean Energy Business Planning for
In
the Alternative Energy Promotion Centre (AEPC),
coordination
of
Microfinance
Innovation
Center for Resources and Alternatives (MICRA),
the members of the Board of Directors of RMDC
had made a study visit to the Indonesia from
(MFIs) from April 24 to 28, 2013 in Lucknow, India.
Nine banks/MFIs of Nepal including RMDC and
a government agency for energy program,
participated in the program. RMDC’s officials Mr.
Ram Dayal Rajbanshi and Mr. Jay Ram Khadka
September 1-8, 2012. The team led by Mr. Ashoke
participated in the program.
SJB Rana, Chairperson comprised of other board
The main objective of the training program was
members namely Mr. Manmohan Kumar Shrestha,
to train the financial institutions on preparation of
Mr. Anil Kumar Shrestha, Mr. Rajan Kumar Amatya,
a business plan for clean energy lending. Lead
Mr. Kiran Kumar Shrestha, Mr. Anil Kumar Khanal
trainer Mr. Aimthy Thoumoung taught about
and Ms. Sadhana Upadhyay and CEO Mr. Shankar
the concepts, steps and process of business
Man Shrestha.
planning
During the visit the team observed prevailing
officials highlighted the roles and functions of the
microfinance
practices
of
Indonesia.
The
team made visit to Rural Banks, Microfinance
Cooperatives, a wholesale lending institution Bank Andara and the Central Bank of Indonesia,
where the team observed and discussed with
senior management & board on microfinance
operation, organizational structure, monitoring &
supervision procedure etc. The team also made
field visit to some borrowers & groups of MFIs and
interacted with the clients about microfinance
and their projects.
With
funding
of
for
clean
energy
program.
AEPC
organization on clean energy promotion and
development in the country. During the program,
the participants were taken to villages where
clean energy products – solar home systems and
improved cook stoves-were used. The participants
had an opportunity to talk with the clients who
had used the products and to meet officials of
financier banks. There were also presentations
from Aryavart Kchetriya Grameen Bank, Bank of
India, National Housing Bank, SKDRDP, which have
financed energy products in India. Moreover,
suppliers of improved cook stoves and solar home
Participation in Clean Energy
Business Planning Training
Program in Lucknow
United
Nations
Capital
Development Fund (UNCDF), the Seattle based
Microenergy Credits team conducted a training
59
Nepalese banks and microfinance institutions
The Partner for Safe, Sensible & Sustainable Microfinance
systems had shared their products and services to
the participants.
The program gave participants some idea about
how clean energy financing program has been
implemented in the neighboring country. It was
found that state-owned banks and microfinance
NGOs were actively involved in energy lending
Annual Report
2012/13
program. A number of quality suppliers of the
energy products are also available in the Indian
market.
Microcredit Summit
Campaign Report Release
As a representative of Microcredit Summit
Campaign for Nepal, RMDC has been releasing
report of the Microcredit Summit Campaign each
year. The Microcredit Summit Campaign is a
project of RESULTS Educational Fund, a U.S.-based
advocacy organization committed to creating
the will to eliminate poverty. The Campaign brings
together microfinance practitioners, advocates,
researchers, investors, donors, and stakeholders to
promote best practices in the field, to stimulate the
interchange of knowledge, and to work towards
reaching the Campaign’s goals.
In FY 2012/13, RMDC released the Microcredit
Summit Campaign Report 2013 on February 5,
2013 in presence of media people. The report title
to Vulnerability, highlighted that in 2011, 13 million
fewer of the world’s poorest families received
access to microcredit and other financial services
than in 2010. It marked that it was the first time
since 1998 when the Campaign began tracking
this data that the total number of clients and the
number of poorest families reached had declined.
The total number of clients was reported to have
fallen from 205 million to 195 million and the sub-set
of families living in extreme poverty, defined as less
than $1.25 a day, from 137 million to 124 million.
The report argues that getting the industry back on
track will require a new understanding of clients’
needs, preferences, and aspirations, as well as
designing new tools for delivering products and
services to them at lower costs.
During the press meet Mr. Shankar Man Shrestha,
CEO of RMDC, highlighted the main findings of the
report such as outreach of the microfinance, its
growth rate, issues and challenges faced by global
microfinance industry, its quality and contribution
in reducing the poverty across the world.
The Partner for Safe, Sensible & Sustainable Microfinance
60
Annual Report
2012/13
Challenges of Microfinance Sector
in Nepal
Microfinance sector in Nepal, as in most other
including regulator, investors and practitioners. The
developing countries, has made a considerable
major challenges facing by the microfinance industry
progress particularly in scale of outreach in spite
have been briefly described
of many challenges it has been facing.
Quite a
number of institutional micro-lenders in the form of
microfinance
banks,
financial-intermediary
non-
government organization (FINGOs or microfinance
NGOs), savings and credit cooperative societies
Although there is quite a number of institutional micro-
have been established across the country. And these
lenders in the country in different corporate form,
organizations have been able to reach out to over 18
most of them still have limited institutional capacities
million poor households with microfinancial services,
to deliver quality and broad microfinance services
particularly microcredit and savings services. Most
(not only the existing savings and credit services but
of these organizations have been performing well
also the payment transfers (remittance transfer),
financially maintaining high loan portfolio quality and
micro-insurance services, and the like) to the poor
desirable operational self-sufficiency.
households living across the country. Majority of
However, they lag behind in social performance
indicators. Focus on clients’ protection and economic
growth seems to be almost ignored from the side of
MFIs and the concerned agencies. Microfinance
programs are concentrated in easily accessible
areas, but the remote hilly/mountain areas are still
deprived of the institutional microfinance services.
Mission-drift among the MFIs and multiple lending
to clients are on increase in the country. For the
sustainable growth of the microfinance industry,
essential financial infrastructures, such as specialized
Credit Information Bureau (CIB) for microfinance,
availability of appropriate micro-insurance services,
suitable information technologies, etc are generally
lacking in the country. Hence, in order to expand
quality and comprehensive microfinance services
to the majority of the poor households and to make
the microfinance industry more responsible and
sustainable over a reasonable period of time, a lot
of efforts still need to be made by all stakeholders
61
Limited capacity of
institutional micro-lenders
The Partner for Safe, Sensible & Sustainable Microfinance
the institutions do not have an adequate number
of competent and committed human resources
essential for effective delivery and management of
their services as per the best microfinance practices.
The medium and bigger MFIs are still struggling to have
friendly and well-forming computer software to have
an automated operating system and management
information systems (MIS) required to implement
and manage their complex operations effectively
and efficiently. Most of them do not also have
own capacity to formulate medium and long-term
business plan. Governance and top management
of these organizations are also not up to the desired
standard. Moreover, most of the microfinance banks
do not still have right operational policies and systems
of risk management, asset and liability management,
cash management in place. In spite of such lacking,
most micro-lenders disburse loans to as many clients
as possible as they have easy access to loan funds
from banks and financial funds.
Annual Report
2012/13
Poor physical and economic
infrastructures
Poor physical and economic infrastructures are
found as the major constraints for limited access
of microfinance in the remote rural and hill/
mountain areas of the country. These areas have
very poor road networks and transport facilities.
Economic infrastructures, such as presence of
banks, telecommunication offices, post offices,
etc are lacking in the areas. These factors have
caused difficulty to both MFIs and clients. MFIs
operating in hill/mountain districts find difficulty in
managing their cash as the banks’ branches are
not existed nearby their operating areas and even
in the district headquarters. Likewise, the clients
living very far from the market centers due to lack
of poor road network and transport infrastructures
cannot produce as much as they can even though
they have quality land and favorable environment
to grow crops in their localities. Easy availability of
funds to the poor families could not make much
difference unless the infrastructures for economic
development are improved in such areas.
for instance on-the-job training, onsite technical
assistance, well organized exposure visit to best
practices, interactive problem solving workshops,
etc. are essential to develop right human
resources required to run an MFI efficiently and
effectively. Mere theoretical courses conducted
in class-rooms will not help much to the MFIs
particularly to the beginner ones. Although RMDC
has fulfilled the training needs of MFIs to a larger
extent in the earlier years, the growing training
needs of MFIs could not be fulfilled by its resources
alone. Hence, the microfinance industry needs a
specialized training institute which could conduct
such practical training courses.
Limited essential financial
infrastructures
Essential
financial
infrastructures
for
sustainable
growth of the microfinance industry, such as specific
credit information bureau (CIB) for microfinance,
easily available appropriate micro-insurance services
and suitable information technologies for effective
delivery of microfinance services, are still lacking in
the country.
Lack of appropriate training
institute for microfinance
In the absence of a specialized CIB for microfinance,
There are a few training institutes in the country
which offer some theoretical microfinance
courses occasionally; but none of them are
conducting need-based practical or operational
skills development training programs with the
purpose of developing suitably qualified human
resources for MFIs. In order to run an MFI smoothly,
the organization’s staff should have adequate
knowledge and skills in microfinance operation,
such as identification of poor households in a
community, orientation of eligible members before
enrolling them as members into a microfinance
program, conducting regular group meeting,
supervision and monitoring of operations, internal
control, credit operation management, branch
management, etc. So far, the MFIs have learned
the operating skills from each other.
its decision of loan approval for her/him. Although
RMDC’s one-and-a half-decades long experience
in institutional capacity building of MFIs shows
that need-based practical training programs,
a frontier micro-lender in the country finds difficult to
assess actual credit history of a client while making
taking credit information while doing appraisal of
bigger loans is mandatory for the micro-lenders
regulated by the central bank, they could not comply
with it due to unhealthy or unfriendly behaviors of
their neighboring financial institutions. There has been
a growing mistrust or unhealthy competition among
these institutions, which has made almost impossible
in exchange of correct credit information among the
MFIs. And, this has aggravated the current scenario
of increasing undesirable multiple lending to clients.
Similarly, proper micro-insurance services, such as
life or health insurance services for the poor and
insurance of micro-enterprises (livestock insurance,
crop insurance, etc.) are limited or almost lacking
in most part of the country. In the lack of such
services, the low-income entrepreneurs do not have
confidence to venture into high-return economic
activities, for instance raising high yielding cow or
buffalo, cultivation of high-breed crops and high
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quality fish farming etc. Likewise, most MFIs do not
businesses. They try to keep interest spread wider and
have
management
staff productivity higher with the aim of earning higher
delivery
and
interest income. But, the institutions have not given
management of microfinance services as yet. In
their attention towards the socio-economic growth
dearth of this capacity, the institutions could not have
of their clients, for which they have been actually
expanded their operations effectively and efficiently.
established. With the purpose of achieving periodic
automated
information
operation
systems
for
and
effective
target, field staffs of the institutions concentrate their
Poor supervision and
monitoring of financial
cooperative societies
efforts on increasing number of borrowers, volume
of loan outstanding, savings, etc. The field staffs are
not being incentivized for their work on monitoring of
loan utilization by clients, building up entrepreneurial
Cooperative societies have been recognized as one
of the important institutions for rural development and
poverty reduction in the country. Banks and financial
institutions, in the recent years, have been disbursing
their
mandatory
deprived
sector
(microcredit)
funds to the poor populace also through financial
cooperative societies as the microfinance NGOs
1
and specialized microfinance banks are in very
limited number. The financial cooperative societies,
if they can perform well financially, could also be a
right vehicle to channel a large amount of deprived
sector funds to the rural and remote areas in the long
run as these institutions are in large number2 and
are found in every nook and corner of the country.
Structurally these institutions are self regulated as they
are locally owned and managed. It is observed that
most of the financial cooperative societies are not
even up to the basic standard in terms of governance
and
management,
accounting
and
financial
management, credit operation, internal control and
monitoring, etc. Offsite and onsite supervision and
monitoring of these institutions from the concerned
capacity of clients, linking them with markets, and so
on for growth of clients. It seems that the MFIs are not
so serious about long term financial sustainability of
their institutions.
Limited business
development services to
microfinance clients
MFIs in the country offer only financial services, such
as micro saving, micro-credit and few of them also
provide remittance services linking with commercial
banks. Few MFIs occasionally organize few training
on agriculture or livestock from their own resources or
donor funds. But, none of the MFIs has been providing
systematically
designed
business
development
services to the clients although the institutions
recognize the importance of entrepreneurial skills
development of clients which will ensure the growth of
clients as well as the sustainability of the microfinance
industry in the country.
to improve their institutional capacities, is found very
Supply of deprived sector
funds in the market
poor in the country.
It is mandatory for class A, B and C type banks and
regulatory and supervisory bodies, which is essential
MFIs focus on short-term
viability of their institutions
financial institutions to disburse at least 4.5%, 4%
and 3.5% of their total loan portfolios respectively
to the deprived sector (the poor masses). In order
to meet the obligatory requirement, these financial
Nepali MFIs in general have become profit centric
institutions either lend directly to the poor households
in order to please their investors and staff. To obtain
or disburse the fund to the target group through MFIs
higher profit, they have been making utmost efforts
(microfinance NGOs, specialized microfinance banks
for increasing their market shares and volume of their
or financial cooperative societies).
1
Financial cooperatives includes the savings and credit cooperative societies and other cooperative societies having a
license to deliver savings and credit services.
2
There are over 12,000 savings and credit cooperative societies in the country.
63
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and
poor and less poor clients with higher loan size
financial institutions do not have their own experience
with the objective of increasing their volume of
in micro-lending, they are found not following the
businesses and thereby raising up their institutional
best microfinance practices while lending directly
profitability. It has been observed that the very poor
to the poor. As a result, outcomes and impact of the
or ultra-poor households have been left-out from their
direct lending program of these financial institutions
microfinance programs because of their larger loan
have been generally observed negative or harmful
size and inappropriate operating modality not suited
to the microfinance industry. Wholesale lending to
to the poor clients. Besides, the staff are geared up
MFIs also appears challenging for the banks and
toward reaching physical target by poaching clients
financial institutions as there are a very limited number
of other MFIs. This scenario has been found largely
of credit-worthy MFIs in the country. This situation has
in the microfinance programs being implemented
caused unhealthy competition among the banks
directly by the development banks or commercial
and financial institutions for lending to the few viable
banks or by the microfinance banks owned by the
MFIs. It has been observed that most of the institutions
banks.
Since
these
commercially-oriented
banks
lend to MFIs even at negative interest rate in order
3
to meet their mandatory targets and thereby to get
escaped themselves from the high penalty charge
from the regulatory body. The financial institutions do
not also undertake an in-depth appraisal of an MFI
before lending to. These unhealthy behaviors of the
financial institutions would definitely distort the whole
financial systems.
Microfinance Mission Drift
A particular MFI states in its preamble that its objective
is poverty reduction. In order to achieve the objective,
the institution has to reach out to a large number of
poorer households including the ultra-poor families
with quality and appropriate microfinance products
and services.
Having a large number of poorer
clients, such type of MFI would definitely have a lower
loan size. And these MFIs can meet their operational
costs and maintain their desired financial health
by increasing staff productivity in terms of number
of borrowers per staff and operational efficiency.
Maximization of institutional profitability should not
be the sole objective of these organizations. They
can maintain reasonable profit through charging
appropriate interest rate to the clients.
But, in recent years, particularly the larger MFIs
or microfinance banks in the country have been
found deviated from their original mission of poverty
reduction by offering most of their services to non-
3
Over-indebtedness of
microfinance clients
Over-indebtedness is currently one of most serious
risks of microfinance, endangering both social
impact and industry stability. It has the potential
to push customer further into poverty. It could also
put the MFIs, their portfolio quality and institutional
sustainability at risk. Moreover, its consequences
can spill over to investors, donor and the whole
microfinance sector.
The situation of over-indebtedness arises when
a microfinance client borrows such an amount
which is beyond her or his capacity. This scenario
has been widely observed in recent years in the
country, particularly in the geographical areas
where there is presence of large number of microlenders. Field offices of the MFIs, in order to meet
their periodic target, try to disburse loans to many
clients without making detailed appraisal of the
clients. And the clients having no idea about
the consequences of over-indebtedness borrow
a larger amount of loan when they are offered
easy loans from different MFIs. As a result, some
MFIs have already started facing the loan default
problem. It is high time to take necessary steps by
the MFIs, the regulators and the lenders to protect
the clients and thereby to minimize the risks to the
microfinance industry.
The bank and financial institutions are also found lending at 3-5% APR, which is very low compared to public savings rate and
inflation in the country.
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ANNEX I
Institutions which Received
Training Supports from RMDC
As of July 15, 2013
SN
Name of Organizations
Microfinance Development Banks
1
Chhimek Laghubitta Bikas Bank Ltd., Hetauda
2
Deprosc Laghubitta Bikas Bank Ltd., Bharatpur
3
Madhyamanchal Grameen Bikas Bank Ltd., Janakpur
4
Madhyapaschimanchal Grameen Bikas Bank Ltd., Nepalganj
5
Nerude Laghubitta Bikas Bank Ltd., Biratnagar
6
Nirdhan Utthan Bank Ltd., Bhairahwa
7
Paschimanchal Grameen Bikas Bank Ltd., Butwal
8
Purbanchal Grameen Bikas Bank Ltd., Biratnagar
9
Sana Kisan Bikas Bank Ltd., Kathmandu
10
Sudurpaschimanchal Grameen Bikas Bank Ltd., Dhangadhi
11
Summit Laghubitta Bikas Bank Ltd. Jhapa
12
Swablamban Bikas Bank Ltd., Janakpur
13
Mahila Sahayatra Microfinance Bittiya Sanstha Ltd., Chitlang
Development Banks
14
Gaurishankar Bikas Bank Ltd., Kawasoti
15
Triveni Bikas Bank Ltd., Narayanghat
16
Bageswori Bikas Bank Ltd., Nepalganj
17
Siddhartha Bikas Bank Ltd., Butwal
18
Muktinath Bikas Bank Ltd., Pokhara
Cooperatives
19
Aguali Samajik Uddhyami Mahila Cooperative Ltd., Aguali, Danda
20
Aekrikrit Savings and Credit Cooperative Ltd., Pyuthan
21
Aerawati Multipurpose Cooperative Ltd., Pyuthan
22
Ananda Saving & Credit Cooperative Ltd., Kathmandu
23
Andhakar Mukti Saving and Credit Cooperative Ltd., Palpa
24
Arunodaya Saving & Credit Cooperative Ltd., Parsa
25
Atma Nirbhar Tarkari Uttapadan Cooperative Ltd., Kavre
26
Baghkhor Samajik Uddhyami Mahila Cooperative Ltd., Chitwan
27
Batabaran Sudhar Multi-purpose Cooperative Ltd., Surkhet
28
Batawaran Sangrakshan Multipurpose Cooperative Ltd.,Masuriya, Kailali
65
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SN
Name of Organizations
29
Bhimkul Saving & Credit Cooperative Ltd., Gorkha
30
Bikas Bahuuddyesha SCO Ltd., Shankarnagar, Rupandehi
31
Bindhbasini Saving & Credit Cooperative Ltd., Kavre
32
Bishawajoyti Mahila Bikas Multipurpose Cooperative Ltd., Kailali
33
Bishazari Samajik Uddhyami Mahila Cooperative Ltd., Gitanagar, Chitwan
34
Biswasilio Saving & Credit Cooperative Ltd., Bardiya
35
Bouddha Grameen Saving and Credit Cooperative Ltd., Latikoilee, Surkhet
36
Bramahapuri Saving & Credit Cooperative Ltd., Lalitpur
37
Chameli Saving and Credit Cooperative Ltd., Sarlahi
38
Chatreshwori Krishi Upabhokta Sahakari Sanstha Ltd., Salyan
39
Chaturbhujeshwor Multipurpose Ship Mahila Cooperative Ltd., Sarlahi
40
Chetna Samajik Udhyami Sahakari Sanstha Ltd., Salyan
41
Dana Grameen Saving & Credit Cooperative Ltd., Jhumka, Sunsari
42
Deurali Multipurpose Cooperative Ltd., Panchthar
43
Deurali Saving and Credit Cooperative Ltd., Lamjung
44
Dhnanjaya Multipurpose Cooperative Ltd., Surkhet
45
Digo Kosh Sanchalan Saving and Credit Cooperative Ltd., Rolpa
46
Digre Sai Kumari Saving & Credit Cooperative Ltd., Rukum
47
District Federation Office of SFCLs Ltd., Dhading
48
Dolkha Multipurpose Cooperative Ltd., Dolkha
49
Ekta Saving & Credit Cooperative Ltd., Kumaripati, Lalitpur
50
Everest Cooperative Ltd., Pokhara
51
Everest Saving & Credit Cooperative Ltd., Banke
52
Gadilekh Savings and Credit Cooperative Ltd., Rolpa
53
Gaditakura Devi Mahila Bikas Savings and Credit Cooperative Ltd., Dang
54
Gangamala Cooperative Ltd., Surkhet
55
Gorkha Cottage & Small Industries Cooperative Ltd., Jhapa
56
Gorkhkali Saving & Credit Cooperative Ltd., Gorkha
57
Gosaikunda Multipurpose Cooperative Ltd., Nuwakot
58
Grameen Bikas Multipurpose Cooperative Ltd., Dailekh
59
Grameen Jagaran Saving & Credit Cooperative Ltd., Surkhet
60
Hadhdeva Agriculture Cooperative Ltd., Taplejung
61
Hamro Bank Saving & Credit Cooperative Ltd., Kavre
62
Hamro Thailee Saving & Credit Cooperative Ltd., Lalitpur
63
Hari Tara Saving & Credit Cooperative Ltd., Arghakhanchi
64
Hatemalo Mahila Multipurpose Cooperative Ltd., Kathmandu
65
Hatemalo Saving & Credit Cooperative Ltd., Accham
66
Helping Saving & Credit Cooperative Ltd., Lalitpur
67
Himalaya Swabalamban Savings and Credit Cooperative Ltd., Bhalbari, Kapilbastu
68
Himchuli Krishi Cooperative Ltd., Kalikot
69
Ideal Cooperative Ltd., Rajbiraj
70
Indragram Punarmilan Saving & Credit Cooperative Ltd., Chitwan
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Name of Organizations
71
Indrapur Multipurpose Cooperative Ltd., Morang
72
Jagaran Saving & Credit Cooperative Ltd., Kathmandu
73
Jagriti Saving & Credit Cooperative Ltd., Achham
74
Jai Ambe Swabalamban Savings and Credit Cooperative Ltd., Manpur, Kapilbastu
75
Jana Jagriti Tarkari Utpadan Cooperative Ltd., Dhulikhel
76
Janabikas Swabalamban Savings and Credit Cooperative Ltd., Thunihaya, Kapilbastu
77
Janachetana Multipurpose Cooperative Ltd., Doti
78
Janahitkari Saving & Credit Cooperative Ltd., Surkhet
79
Janahitkosh Saving & Credit Cooperative Ltd., Ramechhap
80
Janajagaran Saving & Credit Cooperative Ltd., Dolkha
81
Janajyoti Swabalamban Savings and Credit Cooperative Ltd., Udaypur, Kapilbastu
82
Janakalika Saving & Credit Cooperative Ltd., Baitadi
83
Janakalyan Saving & Credit Cooperative Ltd., Dolkha
84
Janakalyan Saving & Credit Cooperative Ltd., Makwanpur
85
Janakalyan Saving & Credit Cooperative Ltd., Malekhu, Dhading
86
Janakalyan Saving & Credit Cooperative Ltd., Sunsari
87
Janakalyan Savings and Credit Cooperative Ltd., Rolpa
88
Janakalyankari Saving & Credit Cooperative Ltd., Baitadi
89
Janamukhi Saving & Credit Cooperative Ltd.,Dolkha
90
Janamukhi Savings and Credit Cooperative Ltd., Dang
91
Janasachetan Saving & Credit Cooperative Ltd., Dolakha
92
Janasewa Saving & Credit Cooperative Ltd., Kanchanpur
93
Janasewa Saving & Credit Cooperative Ltd., Khotang
94
Janata Savings and Credit Cooperative Ltd., Bhimdatt, Kanchanpur
95
Jankalayan Multipurpose Cooperative Ltd., Bara
96
Janupkar Saving & Credit Cooperative Ltd., Dolakha
97
Jaya Durge Multipurpose Cooperative Ltd., Doti
98
Jeevanjyoti Mahila Bikas Multipurpose Cooperative Ltd.,Malakheti, Kailali
99
Jeevanpayogi Saving & Credit Cooperative Ltd., Doti
100
Jilla (District) Saving & Credit Cooperative Ltd., Achham
101
Jyoti Mahila Development Cooperative Ltd., Chitwan
102
Kailash Saving & Credit Cooperative Ltd., Achham
103
Kalidevi Multipurpose Cooperative Ltd., Lalitpur
104
Kalika Multipurpose Cooperative Ltd., Rasuwa
105
Kalyankari Saving & Credit Cooperative Ltd., Lalitpur
106
Kamalamai Multipurpose Cooperative Ltd., Sindhuli
107
Kanchanjanga Agriculture Cooperative Ltd., Taplejung
108
Kanchanjanga Samudayik Multipurpose Cooperative Ltd., Taplejung
109
Kanchanjunga Saving & Credit Cooperative Ltd., Fidim, Panchthar
110
Kapurkot Krishi Sahakari Sanstha Ltd., Salyan
111
Karai Khola Agri.Cooperative Ltd., Surkhet
112
Karnali Saving & Investment Cooperative Ltd., Jhapa
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Name of Organizations
113
Karpureshwor Saving & Credit Cooperative Ltd., Lamjung
114
Kasturi Multipurpose Cooperative Ltd., Jajarkot
115
Kawasoti Samajik Uddhyami Mahila Cooperative Ltd., Kawasoti, Nawalparasi
116
Kedarnath Saving & Credit Cooperative Ltd., Darchula
117
Khairenitar Mahila Bikas Multipurpose Cooperative Ltd., Tanahu
118
Kisan Kalpan Saving & Credit cooperative Ltd., Sunsari
119
Kisan Multipurpose Cooperative Ltd., Kailali
120
Kola Samaijee Mahila Bikas Multipurpose Cooperative Ltd.,Dadeldhura
121
Kolmateshowr Saving & Credit Cooperative Ltd., Thali, Kathmandu
122
Koseli Saving & Credit Cooperative Ltd., Bardiya
123
Krishak Jagaran Upvokta Cooperative Ltd., Lamjung
124
Lagani Multipurpose Cooperative Ltd., Lalitpur
125
Lagansheel Samajik Uddhyami Mahila Cooperative Ltd., Shaktikhor, Chitwan
126
Laliguras Multipurpose Cooperative Ltd., Tanahu
127
Madiganga Mahila Multipurpose Cooperative Ltd., Tanahu
128
Mahaprabhu Savings and Credit Cooperative Ltd., Lalmatiya, Dang
129
Mahila Jagaran Cooperative Ltd., Salyan
130
Mahila Jagaran Saving & Credit Cooperative Ltd., Makwanpur
131
Mahila Kalyan Saving & Credit Cooperative Ltd., Bajhang
132
Mahila Kalyan Saving & Credit Cooperative Ltd., Makwanpur
133
Mahila Prayas Saving & Credit Cooperative Ltd., Kathmandu
134
Maitri Multipurpose Cooperative Ltd., Gulmi
135
Maitri Saving & Credit Cooperative Ltd., Baluwatar, Kathmandu
136
Manmaiju Samaj Kalyan Multipurpose Cooperative Ltd., Kathmandu
137
Marsyangdi Community Development Multipurpose Cooperative Ltd., Tanahu
138
Mayadevi Mahila Multipurpose Cooperative Ltd., Tilaurakot, Kapilbastu
139
Mhepi Saving & Credit Cooperative Ltd., Kathmandu
140
Mirmire Mahila Savings and Credit Cooperative Ltd., Badhganga, Kapilbastu
141
Mohanyal Savings and Credit Cooperative Ltd.,Pahalmanpur, Kailal
142
Nakarodh Ghodaghodi Multipurpose Cooperative Ltd., Darakh, Kailali
143
Namaste Savings and Credit Cooperative Ltd., Dhangadi, Kailali
144
Namuna Mahila Agriculture Cooperative Ltd., Taplejung
145
Narayan Multipurpose Cooperative Ltd., Dailekh
146
Navachetan Saving & Credit Cooperative Ltd.,Parbat
147
Navapragati Saving & Credit Cooperative Ltd., Pragatinagar
148
Navapratibha Saving & Credit Cooperative Ltd., Nawalparasi
149
Navin Bikas Savings and Credit Cooperative Ltd., Chainpur, Bajhang
150
Navodaya Multipurpose Cooperative Ltd. Topgachhi, Jhapa
151
Nawadeep Multipurpose Cooperative Ltd., Kathmandu
152
Nawajagaran Saving & Credit Cooperative Ltd., Dadeldhura
153
Nawasiddhartha Saving & Credit Cooperative Ltd., Pyuthan
154
Nhakanda Saving & Credit Cooperative Ltd., Lalitpur
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SN
Name of Organizations
155
Ninglashaini Multipurpose Cooperative Ltd., Mahendranagar, Kanchanpur
156
Nobel Samudayik Agriculture Cooperative Ltd.,Taplejung
157
Palpa Rara Saving and Credit Cooperative Ltd.,Palpa
158
Palung Multipurpose Saving & Credit Cooperative Ltd., Makwanpur
159
Pathibhara Agriculture Cooperative Ltd., Taplejung
160
Pokhara Royal Cooperative Ltd., Mahendrapul, Pokahara
161
Prabhat Savings and Credit Cooperative Ltd., Krishnapur, Kanchanpur
162
Pragati Mahila Bikas Multipurpose Cooperative Ltd., Godavari, Kailali
163
Pragati Saving & Credit Cooperative Ltd., Salyan
164
Radha Krishna Saving and Credit Cooperative Ltd., Kailai
165
Ranitar Multipurpose Cooperative Ltd., Kavre
166
Royal Cooperative Ltd., Syangja
167
Rural Multipurpose Cooperative Ltd., Morang
168
Sagarmatha Mahila Bikas Savings and Credit Cooperative Ltd., Taulihawa, Kapilbastu
169
Sahaj Savings and Credit Cooperative Ltd., Shivpur, Kapilbastu
170
Sahara Women Saving & Credit Cooperative Ltd., Dhading
171
Sahara-Nepal Saving & Credit Cooperative Ltd., Charali, Jhapa
172
Samjhauta Multipurpose Cooperative Ltd., Rampur Bilaspur, Kanchapur
173
Samudayik Apangata Savings and Credit Cooperative Ltd., Gajehada, Kapilbastu
174
Samudayik Saving & Credit Cooperative Ltd., Rukum
175
Samudayik Sewa Cooperative Ltd., Kathmandu
176
Samuhik Multipurpose Cooperative Ltd., Sindhupalchowk
177
Sana Kisan Agriculture Cooperative Ltd., Khadbabangai, Rupandehi
178
Sana Kisan Cooperative Ltd., Surkhet
179
Sarasawotisthan Multipurpose Cooperative Ltd., Doti
180
Sarveshwori Mahila Savings and Credit Cooperative Ltd., Dang
181
Sarwagin Samajik Uddhyami Mahila Cooperative Ltd., Chitwan
182
Saving & Credit Association, Siraha
183
Sayaptri Saving & Credit Cooperative Ltd., Dharan
184
Seshmati Multipurpose Cooperative Ltd, Kathmandu
185
Seti Devi Multipurpose Cooperative Ltd., Ilam
186
Seti Devi Multipurpose Cooperative Ltd., Kavre
187
Sewa Saving & Credit Cooperative Ltd., Sunsari
188
Shaileshwori Savings and Credit Cooperative Ltd., Kailali
189
Shantikunj Samajik Uddyami Mahila Cooperative Ltd., Ratnanagar, Chitwan
190
Shramajibi Saving & Credit Cooperative Ltd., Siraha
191
Shree Nayapati Saving & Credit Cooperative Ltd., Kathmandu
192
Shreejana Savings and Credit Cooperative Ltd., Chandani, Kanchanpur
193
Shreejanshil Mahila Bikas Multipurpose Cooperative Ltd., Shripur, Kailali
194
Shubhalaxmi Savings and Credit Cooperative Ltd., Salyan
195
Shuvalabh Saving and Credit Cooperative Ltd., Taplejung
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Name of Organizations
196
Siddhartha Saving & Credit Cooperative Ltd., Kapilvastu
197
Sidhababa Sahakari Sanstha Ltd., Shripur, Kanchanpur
198
Sikhar Samaijee Saving & Credit Cooperative Ltd., Dadeldhura
199
Silsila Bahudeshiya Saving & Credit Cooperative Ltd., Arghakanchhi
200
Small Farmer Agri. Cooperative Ltd. (SFCL), Agyauli, Nawalparasi
201
Small Farmer Agri. Cooperative Ltd. (SFCL), Anandaban, Rupandehi
202
Small Farmer Agri. Cooperative Ltd. (SFCL), Banjariya, Nawalparasi
203
Small Farmer Agri. Cooperative Ltd. (SFCL), Birendranagar, Chitwan
204
Small Farmer Agri. Cooperative Ltd. (SFCL), Chisapani, Banke
205
Small Farmer Agri. Cooperative Ltd. (SFCL), Deunne Devi, Nawalparasi
206
Small Farmer Agri. Cooperative Ltd. (SFCL), Devdaha, Rupandehi
207
Small Farmer Agri. Cooperative Ltd. (SFCL), Godardiha, Dang
208
Small Farmer Agri. Cooperative Ltd. (SFCL), Hadhikhola, Makwanpur
209
Small Farmer Agri. Cooperative Ltd. (SFCL), Jahada, Nawalparasi
210
Small Farmer Agri. Cooperative Ltd. (SFCL), Kanchanpur, Banke
211
Small Farmer Agri. Cooperative Ltd. (SFCL), Karhiya, Rupandehi
212
Small Farmer Agri. Cooperative Ltd. (SFCL), Khairahni, Chitwan
213
Small Farmer Agri. Cooperative Ltd. (SFCL), Kumarbati, Nawalparasi
214
Small Farmer Agri. Cooperative Ltd. (SFCL), Kumroj, Chitwan
215
Small Farmer Agri. Cooperative Ltd. (SFCL), Latikoili, Surkhet
216
Small Farmer Agri. Cooperative Ltd. (SFCL), Lekhpharsa, Surkhet
217
Small Farmer Agri. Cooperative Ltd. (SFCL), Madhbaliya, Rupandehi
218
Small Farmer Agri. Cooperative Ltd. (SFCL), Makar, Nawalparasi
219
Small Farmer Agri. Cooperative Ltd. (SFCL), Malakheti, Kailali
220
Small Farmer Agri. Cooperative Ltd. (SFCL), Motipur, Kapilbastu
221
Small Farmer Agri. Cooperative Ltd. (SFCL), Panchnagar, Nawalparasi
222
Small Farmer Agri. Cooperative Ltd. (SFCL), Rampur, Dang
223
Small Farmer Agri. Cooperative Ltd. (SFCL), Saljhandi, Rupandehi
224
Small Farmer Agri. Cooperative Ltd. (SFCL), Satakhani, Surkhet
225
Small Farmer Agri. Cooperative Ltd. (SFCL), Satbariya, Dang
226
Small Farmer Agri. Cooperative Ltd. (SFCL), Saudiyar, Dang
227
Small Farmer Agri. Cooperative Ltd. (SFCL), Shankarnagar, Rupandehi
228
Small Farmer Agri. Cooperative Ltd. (SFCL), Shripur, Kailali
229
Small Farmer Agri. Cooperative Ltd. (SFCL), Tikuligadh, Rupandehi
230
Small Farmer Agri. Cooperative Ltd. (SFCL), Triveni, Nawalparasi
231
Small Farmer Agri. Cooperative Ltd. (SFCL), Valkarpur, Kapilbastu
232
Small Farmers Cooperative Ltd (SFCL) Chtatredeurali, Dhading
233
Small Farmers Cooperative Ltd (SFCL) Sriantu, Ilam
234
Small Farmers Cooperative Ltd (SFCL) Uttarganga, Surkhet
235
Small Farmers Cooperative Ltd. (SFCL) Dumarbana, Bara
236
Small Farmers Cooperative Ltd. (SFCL) Nawalparasi
The Partner for Safe, Sensible & Sustainable Microfinance
70
Annual Report
2012/13
SN
Name of Organizations
237
Small Farmers Cooperative Ltd. (SFCL) Parroha, Rupandehi
238
Small Farmers Cooperative Ltd. (SFCL) Semlar, Rupandehi
239
Sudur Paschim Saving & Credit Cooperative Ltd., Dadeldhura
240
Surya Multipurpose Cooperative Ltd., Kailali
241
Suryadaya Saving & Credit Cooperative Ltd., Parsa
242
Swargadwari Savings and Credit Cooperative Ltd., Narayanpur, Dang
243
Tamor Mahila Agriculture Cooperative Ltd., Taplejung
244
Tapkhola Jalbidhut Cooperative Ltd., Khotang
245
Taplejung Multipurpose Cooperative Ltd.,Taplejung
246
Trishakti Mahila Savings and Credit Cooperative Ltd., Pyuthan
247
Trishakti SwabalambanSavings and Credit Cooperative Ltd., Balrampur, Kapilbastu
248
Udayadev Multipurpose Cooperative Ltd., Kanchanpur
249
Uma Devi Multipurpose Cooperative Ltd., Kavre
250
United Saving & Credit Cooperative Ltd., Lalitpur
251
Upahar Samajik Uddhyami Mahila Cooperative Ltd., Bijaynagar, Chitwan
252
Upkar Saving & Credit Cooperative Ltd., Waling, Syangja
253
VYCCU Saving & Credit Cooperative Ltd., Gaindakot, Chitwan
254
Women Cooperative Ltd., Kathmandu
255
Women Support Cooperative Ltd., Kathmandu
256
Yuwa Savings and Credit Cooperative Ltd., Mahendranagar, Kanchanpur
Non-Government Organizations (NGOs)
257
Adarsha Youth Club, Bhaktapur
258
Ama Samaj Sangh, Chitwan
259
Association for Rural Women Development, Dang
260
Bhagawan Youth Club, Kathmandu
261
Centre for Self-help Development (CSD), Kathmandu
262
Centre for Women Rights & Development, Kathmandu
263
Chartare Yuwa Club (CYC), Baglung
264
Chetana, Sarlahi
265
Community Women Development Center (CWDEC), Saptari
266
Creative Institute Nepal, Butwal
267
CWEDA, Kathmandu
268
CWIN, Kathmandu
269
Dhanusha Sewa Samiti, Janakpurdham
270
Dhaulagiri Community Resources Development Center (DCRDC), Baglung
271
Economic Development Council, Minbhawan, Kathmandu
272
ENSAVE, Jhapa
273
Forum for Rural Women Ardency Development (FORWARD), Sunsari
274
Grameen Mahila Utthan Kendra, Dang
275
Institute for Community Dedelopment (ICD), Kathmandu
276
Institute for Integrated Development Studies (IIDS), Kathmandu
277
Jagriti Yuwa Club, Kaski
71
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
SN
Name of Organizations
278
Jan Utthan Pratisthan, Kathmandu
279
Jeevan Bikas Samaj, Morang
280
JMC/Nepal, Bharatpur
281
Khurkot Yuwa Club, Parbat
282
Mahila Adarsha Sewa Kendra, Kathmandu
283
Mahila Saghan Bikas Kendra, Chitwan
284
Mahila Swablamban Samaj, Bharatpur
285
Mahila Upkar Manch, Kohalpur, Banke
286
Mahuli Community Development Center, Saptari
287
Manasalu Devt. Centre, Gorkha
288
Manushi, Kathmandu
289
Matyr Saroj M. Club, Simara
290
Nari Utthan Kendra, Bharatpur
291
Nari Utthan Tatha Balbalika Samrachhan Sangh, Saptari
292
NDRC, Pokhara
293
Neighbourhood Society Services Center (NSSC), Kathmandu
294
Nepal Mahila Samudayik Sewa Kendra, Dang
295
Nepal Mahila Utthan Kendra, Kathamndu
296
Nepal Rural Development Organization (NERUDO), Kathmandu
297
Nepal Rural Development Society Center (NRDSC), Biratnagar
298
Nepal Sikara Grameen Bikas Sanstha, Chitwan
299
NESDO, Parbat
300
Patan Business & Professional Women, Patan
301
Project Approach Team for Rural Organization (PATRON), Dhankuta
302
RADAR, Parbat
303
Rural Awareness Forum (RAF), Baglung
304
Rural Reconstruction Nepal (RRN), Kathmandu
305
Sajhedari Nepal, Kathmandu
306
Samaj Kalyan Samiti, Surkhet
307
Sarbodaya Development Organization, Saptari
308
SERSOC, Besisahar, Lamjung
309
Social Welfare Action Nepal (SWAN), Dang
310
Society for Local Volunteers Effort (SOLVE), Dhankuta
311
Srijana Bikas Kendra, Pokhara
312
Srijana Samudayik Bikas Kendra, Siraha
313
Super, Tulsipur, Dang
314
Tarun Club (STC), Nepal, Dang
315
Tharu & Razi Women Society, Kailali
316
United Youth Club, Bardia
317
Women Awareness Center, Kavre
318
Women Entrepreneurs Association of Nepal (WEAN), Lalitpur
319
Women’s Self-Reliant Society, Chitwan
The Partner for Safe, Sensible & Sustainable Microfinance
72
Annual Report
2012/13
ANNEX II
Annual Training Progress of RMDC
FY 2012-13
A. MFIs Officials and Staff Training Programs
S.N.
1
Name of the Programs
Interaction Program for Small Farmers
Target Group
No. of
Participants
No. of
Programs
Chairman, board member, managers
109
3
186
4
21
1
163
4
51
15
318
1
265
1
Cooperatives Ltd.
2
Interaction Program for Cooperatives
Chairman, board member, managers
3
Micro Business Simulation Workshop
CEOs
4
Regional Annual Review Workshop
Chairman, board member, CEO
5
On-site Training Program
Board members & Manager
Seminar on Microfinance & Social
Grameen Bank Officials, CNI Officials, MF
Business
Practitioners, Partner MFIs & Bankers
Revisiting Nepal Microfinance Vision
MF Practitioners, Policy makers, Partner
2015
MFIs & Bankers
8
Credit Appraisal Training
Managers
57
2
9
Internal Audit Training
Loan Committee Members
20
1
1,190
32
6
7
Total
B. International Level Programs
S.N.
Name of the Programs
Target Group
No. of
Participants
No. of
Programs
1
Exposure Visit to IDF, Bangladesh
Board members of Pos & RMDC officials
15
2
2
Exposure Visit Program of Officials from
Bangladesh
Officials from PKSF & their Pos
36
3
3
Exposure Visit to MICRA, Indonesia
CEOs & Managers
8
1
59
6
Total
73
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
C. MFIs In-house Staff Training Programs
S.N.
Name of the Programs
No. of
Participants
Target Group
1
Training on Branch Management
Branch Managers
2
SWOT Analysis
Board, Sr. Managers, Branch Managers,
No. of
Programs
45
2
130
4
142
4
21
1
Staff of Bhimeshwor MP Coop.
17
2
Field Staffs & Clients
3
One-day Training for Field Staffs
Field Staffs & Branch Managers
& Branch Managers/ Review of
Microfinance
4
Training on Monitoring & Supervision
5
One Day Orientation Program under
Board Members, Advisory Committee,
Sr. Officers
YUWAccess Project
6
Interaction with MFI on SME
CEOs of RMDC’s POs
16
1
7
Leadership Development & Account
Board Members & Managers
41
1
88
3
Management Training
8
Interaction Program
Board Members & Managers
9
Interaction with Branch Managers
CEO, Board members & branch managers
404
7
10
Interaction with MF Management
CEO, Board members & branch managers
138
3
11
Basic of Microfinance
Officers
15
1
1,057
29
Total
D. MFIs In-house Clients Training Programs
S.N.
Name of the Programs
Target Group
1
Inter-Group Training
Center Chiefs, Members
2
Pre-Group Training
3
No. of
Participants
No. of
Programs
224
6
Member/Client
17964
745
Refresher Training
Member/Client
35151
1462
4
Center Chief Workshop
Centerchiefs
12062
173
5
Skills Dev. Workshop (Pickle Making)
Member/Client
1540
52
6
Exchange Visit of Center Chiefs
Center Chiefs
6
1
66,947
2,439
Total
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Annual Report
2012/13
ANNEX III
RMDC Loan Portfolio with POs
As of July 15, 2013
(Rs. In ‘000)
S.N.
Partner's Name
Approved Disbursed Outstanding
Amount
Amount
Balance
(Rs.)
(Rs.)
(Rs.)
1
Nirdhan Utthan Bank Ltd., Kathmandu
530,000
450,000
41,250
2
Centre for Selfhelp Development (CSD), Kathmandu
270,000
270,000
-
3
Bindhabasini saving and Credit Cooperative Ltd., Banepa, Kavre
18,000
18,000
15,000
4
Nepal Rural Development Society Centre (NRDSC), Biratnagar
144,755
144,755
-
5
Sahara Nepal saving and Credit Cooperative Ltd., Charpane, Jhapa
741,595
611,595
111,650
6
National Educational and Social Development Organization (NESDO), Parbat
306,755
306,755
95,345
7
Chartare Yuwa Club (CYC), Baglung
290,425
220,425
98,130
8
Society of Local Volunteers' Effort (SOLVE), Dhankuta
105,990
98,000
46,273
9
Rural Awareness Forum (RAF), Baglung
2,000
1,400
-
10
haulagiri Community Resources Development Centre (DCRDC), Baglung
37,000
27,000
-
11
Community Women Development Centre (CWDEC), Rajbiraj, Saptari
76,695
58,695
-
12
Mahuli Community Development Centre (MCDC), Mahuli, Saptari
315,060
315,060
113,540
13
Deprosc Laghubitta Bikas Bank Ltd., Bharatpur, Chitwan
85,000
85,000
5,680
14
Paschimanchal Grameen Bikas Bank Ltd., Butwal
40,000
40,000
-
15
UNYC Nepal, Bardiya
179,950
169,950
86,163
16
Chhimek Laghubitta Bikas Bank Ltd., Kathmandu
499,090
464,590
62,715
17
Madhyamanchal Grameen Bikas Bank Ltd., Janakpur
40,000
40,000
-
18
Swabalamban Laghubitta Bikas Bank Ltd., Kathmandu
451,000
451,000
20,000
19
Manushi, Gyaneswor, Kathmandu
150,000
150,000
27,760
20
Nepal Mahila Utthan Kendra, Lalitpur
44,520
44,520
-
21
Jeevan Bikash Samaj, Amahibariyati, Morang
783,420
703,417
189,800
22
Forum for Rural Women Ardency Development (FORWARD), Sunsari
762,065
739,600
197,360
23
Mahila Sahayogi Saving and Credit Cooperative Ltd., Balaju, Kathmandu
116,020
91,020
28,225
24
Srijana Samudaik Bikas Kendra, Choharwa, Siraha
276,500
246,500
109,615
25
Nepal Mahila Samudayik Sewa Kendra (NMSSK), Ghorahi, Dang
141,200
121,200
27,900
75
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
S.N.
Partner's Name
26
Srijana Bikash Kendra, Pokahra
27
Women Entrepreneurs' Association of Nepal (WEAN), Kathmandu
28
Approved Disbursed Outstanding
Amount
Amount
Balance
(Rs.)
(Rs.)
(Rs.)
120,800
120,800
18,045
14,000
10,000
-
Royal Saving and Credit Cooperative Ltd., Syangja
6,435
5,435
-
29
Social Welfare Action Nepal (SWAN), Dang
3,000
100
-
30
Social Up grade in Progress of Educational Region (SUPER)
3,000
3,000
-
31
Grameen Mahila Bikas Sanstha, Dang
2,500
300
-
32
Nawapratibha saving ans Credit Cooperative Ltd., Nawalparasi
96,900
96,900
28,731
33
Grameen Mahila Utthan Kendra, Dang
128,590
78,590
32,605
34
Karnali saving and Credit Cooperative Ltd., Jhapa
55,600
55,600
2,750
35
Sewa saving and Credit Cooperative Ltd., Itahari
19,700
19,700
960
36
Gorkha Gharelu saving and Credit Cooperative Ltd., Gorkha
765
200
-
37
Shramjivi saving and Credit Cooperative Ltd., Lahan, Siraha
84,800
82,800
2,320
38
Indragram Punarmilan saving and Credit Cooperative Ltd., Narayanghat
25,400
25,400
2,325
39
Ideal Saving and Credit Cooperative Ltd., Rajbiraj, Saptari
4,400
4,400
-
40
Navodaya Multipurpose Cooperative Ltd., Topgachhi, Jhapa
77,000
67,000
24,736
41
Bouddha Grameen saving and Credit Cooperative Ltd., Surkhet
146,700
101,700
63,030
42
Batawaran Sudhar Multipurpose Cooperative Ltd., Surkhet
169,225
149,225
76,015
43
Kalika Multipurpose Cooperative Ltd.,Rasuwa
23,400
22,400
6,365
44
Gaurishankar Development Bank Ltd., Nawalparasi
20,000
5,576
-
45
Mahila Upkar Manch, Kohalpur, Banke
69,200
49,200
23,395
46
Triveni Bikas Bank Ltd., Narayanghat
20,000
20,000
-
47
Palpa Rara saving and Credit Cooperative Ltd., Palpa
3,800
3,800
-
48
Krishak Jagaran Cooperative Ltd., Lamjung
39,800
39,800
-
49
Udayadev Multipurpose Cooperative Ltd., Mahendranagar, Kanchanpur
93,650
47,150
27,936
50
Palung Multipurpose Cooperative Ltd., Palung, Makwanpur
12,200
12,200
-
51
Karnali Bikas Bank Ltd., Nepalganj, Banke
10,000
-
-
52
Excel Development Bank Ltd., Birtamod, Jhapa
16,000
1,881
-
53
Patan Business and Professional Women, Pulchowk, Lalitpur
3,000
100
-
54
Chameli saving and Credit Cooperative Ltd., Lalbandi, Sarlahi
4,600
100
-
55
Gangamala saving and Credit Cooperative Ltd., Chhinchu, Surkhet
59,600
24,600
7,500
56
Bageswori Dev.Bank Ltd., Nepalganj, Banke
10,000
6,797
-
57
Maitri Multipurpose Cooperative Ltd., Tamghas, Gulmi
31,425
31,425
18,124
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76
Annual Report
2012/13
S.N.
Partner's Name
Approved Disbursed Outstanding
Amount
Amount
Balance
(Rs.)
(Rs.)
(Rs.)
58
Siddhartha Dev.Bank Ltd., Butwal, Rupandehi
20,000
20,000
-
59
Andhakar Mukti saving and Credit Cooperative Ltd., Rampur, Palpa
71,000
67,000
38,905
60
Nerude Laghubitta Bikas Bank Ltd., Biratnagar
820,480
690,480
130,000
61
Silsila Multipurpose Cooperative Ltd., Argakhachi
2,500
100
-
62
Digo Kosh Shanchalan saving and Credit Cooperative Ltd., Rolpa
1,000
100
-
63
Himchuli Bikas Bank Ltd., Pokhara, Kaski
20,000
6,974
-
64
Kisan Multipurpose Cooperative Ltd., Lamki, Kailali
182,000
142,000
85,877
65
Pashminchal Development Bank Ltd. Butwal, Rupandehi
20,000
20,000
-
66
Sana Kisan Agriculture Cooperative Ltd., Dumbarwana, Bara
130,000
90,000
41,395
67
Digre Saikumari saving and Credit Cooperative Ltd., Khalanga, Rukum
8,000
3,000
-
68
Biswasilo saving and Credit Cooperative Ltd., Thakurdwara, Bardiya
32,500
15,500
10,728
69
Pragati saving and Credit Cooperative Ltd., Tharamare, Salyan
11,800
11,800
7,846
70
Samudayik saving and Credit Cooperative Ltd., Khalanga, Rukum
3,000
-
-
71
Muktinath Bikas Bank Ltd., Prithvichowk, Pokhara
430,165
430,165
128,830
72
Kalyankari saving and Credit Cooperative Ltd., Lubhu, Lalitpur
12,000
6,000
-
73
Kola Samaiji Mahila Bikas Multipurpose Cooperative Ltd., Samaiji, Dadeldhura
500
-
-
74
Nayapati saving and Credit Cooperative Ltd., Nayapati, Kathmandu
35,000
35,000
15,350
75
Deurali Multipurpose Cooperative Ltd., Ishaneswor, Lamjung
27,000
24,000
13,575
76
Sana Kisan Agriculture Cooperative Ltd., Semlar
66,000
46,000
25,925
77
Sana Kisan Agriculture Cooperative Ltd., Parroha
49,000
44,000
21,919
78
Janahitkari saving and Credit Cooperative Ltd., Birendranagar, Surkhet
2,500
2,192
-
79
Shreejana Cooperative Ltd., Kohalpur, Banke
1,000
-
-
80
Kasturi Multipurpose Cooperative Ltd., Khalanga, Jajarkot
500
300
-
81
Himchuli Agriculture Cooperative Ltd., Manma, Kalikot
500
500
105
82
Hatemalo saving and Credit Cooperative Ltd., Binayek, Accham
500
500
-
83
Bhimkul saving and Credit Cooperative Ltd., Borlang, Gorkha
2,500
2,500
-
84
Laliguras Multipurpose Cooperative Ltd., Byas, Tanahu
2,500
2,500
-
85
Shuvakamana Multipurpose Cooperative Ltd., Dulegauda, Tanahu
5,000
-
-
86
Lalima Multipurpose Cooperative Ltd., Bhalbari, Rupandehi
12,000
9,000
7,605
87
Manakamana Mai Multipurpose Cooperative Ltd., Abukhairani, Tanahu
4,000
-
-
88
Arthik Bikas Saving and Credit Cooperative Ltd., Panchkhal, Kavre
3,000
3,000
2,000
89
Bikas Multipurpose Cooperative Ltd., Butwal, Rupandehi
45,000
20,000
16,280
77
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
S.N.
Approved Disbursed Outstanding
Amount
Amount
Balance
(Rs.)
(Rs.)
(Rs.)
Partner's Name
90
Kedarnath Saving and Credit Cooperative Ltd., Dhari-5, Darchula
5,700
5,700
4,366
91
Jana Kalika Saving and Credit Cooperative Ltd., Dehimandu, Baitadi
500
500
90
92
Mahila Kalyan Saving and Credit Cooperative Ltd., Chainpur-1, Bajhang
500
500
205
93
Marshyandhi Multipurpose community Cooperative Ltd., Abukhairani, Tanahu
3,000
3,000
710
94
Shreejanshil Saving and Credit Cooperative Ltd., Jhalari, Kanchanpur
13,000
13,000
9,939
95
Sana Kisan Agriculture Cooperative Ltd., Triveni, Nawalparasi
5,000
-
-
96
Mahila Kalyan Saving and Credit Cooperative Ltd., Aambhanjyang, Makawanpur
3,000
3,000
2,313
97
Kawaswoti Social Entrepreneur Women Cooperative Ltd., Kawaswoti, Nawalparasi
3,500
3,500
2,313
98
Shantikunj Social Entrepreneur Women Cooperative Ltd., Ratnanagar, Nawalparasi
2,500
2,500
1,775
99
Agyauli Samajik Uddhyami Mahila Cooperative Ltd., Danda, Nawalparasi
2,000
2,000
1,350
15,000
9,000
7,719
2,500
1,200
900
40,000
25,000
21,660
3,000
1,000
625
104 Sana Kisan Agriculture Cooperative Ltd., Khairahani, Chitwan
15,000
10,000
8,230
105 Sana Kisan Agriculture Cooperative Ltd., Birendranagar, Chitwan
20,000
20,000
18,125
106 Sana Kisan Agriculture Cooperative Ltd., Devdaha, Rupandehi
30,000
-
-
107 Taplejung Multipurpose Cooperative Ltd., Fungling, Taplejung
10,000
5,000
4,625
108 Api Saipal Saving and Credit Cooperative Ltd., Geta, Kailali
5,000
4,000
3,625
109 Kanchanjanga Samudayik Multipurpose Cooperative Ltd., Fungling, Taplejung
5,000
3,000
2,688
110 Sana Kisan Agriculture Cooperative Ltd., Kumroj, Chitwan
30,000
24,000
21,000
111 Bhimeshwor Multipurpose Cooperative Ltd., Bhirkot, Dolakha
10,000
8,000
7,250
112 Sambriddhi Bikas Bank Ltd., Gajuri, Dhading
10,000
10,000
9,375
5,000
3,000
2,750
15,000
11,000
10,125
4,500
3,000
2,813
116 Indreni Multipurpose Cooperative Ltd., Butwal, Rupandehi
10,000
7,000
6,375
117 Namaste Saving and Credit Cooperative Ltd., Dhangadi, kailali
10,000
10,000
9,375
118 Parichit Saving and Credit Cooperative Ltd., Makrahar, Rupandehi
10,000
3,000
3,000
119 Bhadrakali Multipurpose Cooperative Ltd., Semlar, Rupandehi
10,000
5,000
5,000
120 Pragatisil Mahila Bikas Multipurpose Cooperative Ltd., Makrahar, Rupandehi
10,000
3,000
3,000
3,000
1,000
1,000
100 Sana Kisan Agriculture Cooperative Ltd., Khadawabangai, Rupandehi
101 Bishazari Samajik Uddhyami Mahila Cooperative Ltd., Geetanagar, Chitwan
102 Unnati Saving and Credit Cooperative Ltd., Pokhara, Kaski
103 Mahila Jagaran Saving and Credit Cooperative Ltd., Gadhi, Makwanpur
113 Jaleshwor Multipurpose Cooperative Ltd., Uttarganga, Surkhet
114 Hatemalo saving and Credit Cooperative Ltd., Besisahar, Lamjung
115 Siddheshwori Mahila Saving and Credit Cooperative Ltd., Urahari, Dang
121 Jana Sahayogi Saving and Credit Cooperative Ltd., Mali, Dolakha
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78
Annual Report
2012/13
S.N.
Partner's Name
122 Chhinchu Mahila Sana Kisan Agri. Cooperative Ltd., Chhinchu, Surkhet
Approved Disbursed Outstanding
Amount
Amount
Balance
(Rs.)
(Rs.)
(Rs.)
4,000
-
-
10,000
2,500
2,500
124 Bageswari Women Saving and Credit Cooperative Ltd., Hetauda, Makwanpur
6,000
-
-
125 Batabaran Samrakshyan Multipurpose Cooperative Ltd., Masuriya, Kailali
4,000
-
-
126 Surma Saipal Saving and Credit Cooperative Ltd., Dhangadi, Kailali
8,000
-
-
10,000
-
-
128 New Kanchanjungha Agri. Cooperative Ltd., Fungling, Taplejung
4,000
-
-
129 Mahila Shreejana Multipurpose Cooperative Ltd., Fikkal, Ilam
5,000
-
-
130 Om Saving and Credit Cooperative Ltd., Inarbari, Rautahat
3,000
-
-
131 Krishi Cooperative Ltd., Itahara, Morang
5,000
-
-
132 Jankalyan Multipurpose Cooperative Ltd., Sunwal, Nawalparasi
6,000
-
-
133 Mahila Utthan Saving and Credit Cooperative Ltd., Urlabari Morang
5,000
-
-
134 Janhit Cooperative Ltd., Charikot, Dolakha
5,000
-
-
135 Bhagyadaya Mahila Saving and Credit Cooperative Ltd., Letang Morang
2,500
-
-
10,000
-
-
10,202,675
8,849,672
2,332,400
123 Kaligandaki Saving and Credit Cooperative Ltd., Bharatpur, Chitwan
127 Deurali Multipurpose Cooperative Ltd., Fidim, Panchthar
136 Balmiki Saving and Credit Cooperative Ltd., Gopigunj, Nawalparasi
Total
79
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
ANNEX IV
Year-wise Loan Portfolio of RMDC
(Rs. in Million)
Fiscal Year
Loan Approved
Loan Disbursed
Loan Recovered
Loan Outstanding
1999-00
40.0
40.0
-
40.0
2000-01
32.1
1.9
26.7
15.2
2001-02
132.7
66.0
23.9
57.3
2002-03
116.5
137.1
73.4
120.9
2003-04
123.2
118.8
106.3
133.5
2004-05
382.8
320.7
128.3
325.8
2005-06
357.8
298.2
123.2
500.9
2006-07
1,143.7
961.1
326.9
1,135.0
2007-08
800.3
525.0
405.6
1,254.4
2008-09
903.2
845.2
599.5
1,500.1
2009-10
1,539.7
1,201.9
779.8
1,922.2
2010-11
1,118.4
1,298.0
979.3
2,240.9
2011-12
1,071.7
1,009.2
1,344.6
1,905.5
2012-13
2,440.6
2,026.7
1,599.8
2,332.4
10,202.7
8,849.7
6,517.3
Total
The Partner for Safe, Sensible & Sustainable Microfinance
80
The Partner for Safe, Sensible & Sustainable Microfinance
7
18
25
15
14
3
10
11
4 Jeevan Bikas Samaj, Morang
5 FORWARD, Sunsari (*)
6 Deprosc Laghubitta Bikas Bank Ltd., Chitwan
7 Nerude Laghubitta Bikas Bank Ltd., Biratnagar
8 Paschimanchal Grameen Bikas Bank Ltd., Butwal
9 Sahara Nepal Saving and Credit Cooperative Ltd., Jhapa
10 Muktinath Bikas Bank Ltd., Pokhara
11 National Educational and Social Development Organization (NESDO),
8
4
6
4
1
4
13 Mahuli Community Development Centre, Saptari
14 UNYC Nepal, Bardia
15 Chartare Yuwa Club, Baglung
16 Shrijana Samudayik Bikas Kendra, Siraha
17 Shramjivi Saving and Credit Cooperative Ltd., Lahan
18 Shreejana Bikas Kendra, Pokhara
* Include data of Forward Laghubitta Bikas Bank also.
14
12 Madhyamanchal Grameen Bikas Bank Ltd., Janakpur
Pokhara
45 108
3 Swablamban Laghubitta Bikas Bank Ltd, Kathmandu
12
9
13
10
14
21
34
30
25
34
44
39
56
55
50
61
39
2 Chhimek Laghubitta Bikas Bank Ltd., Kathmandu
60
53
68
69
72
122
212
141
152
218
217
248
215
289
283
548
401
545
No.
No. No.
47 118
Microfinance Institutions
Branches
1 Nirdhan Utthan Bank Ltd., Kathmandu
S.N
As at July 15, 2013
Districts
Total Staff
Members
17,435
19,281
20,243
24,781
25,291
31,978
37,468
45,280
47,812
58,164
64,707
68,094
78,358
96,199
106,401
163,161
174,022
184,177
No.
Borrowers
Savings
Balance
10,539
9,943
12,377
12,970
14,361
20,887
36,299
27,415
32,073
43,166
39,090
52,587
58,520
66,074
940,892
105,009
91,705
77,369
117,482
142,020
173,340
280,887
267,785
549,926
531,941
171,136
161,480
261,894
264,449
197,464
328,158
763,760
523,353
694,630
864,544
338,390 1,088,065
389,109
430,533 1,482,775
555,287 1,205,613
968,327 1,591,213
108,946 1,192,141 2,554,116
137,205 2,418,246 3,218,943
76,299
Overdue Loan
%
Borrowers /
Members
1,216 60%
147 52%
3,942 61%
1,165 52%
940 57%
2,546 65%
95,820 97%
645 61%
2,570 67%
8,460 74%
38,852 60%
8,273 77%
7,186 75%
7,412 69%
1,570 72%
54,838 67%
1,533 79%
33,603 69%
Rs. in '000 Rs. in '000 Rs. in '000
Outstanding
Loan
127,122 1,318,232 3,638,027
No.
(Provisional)
Outstanding
Loan per
Borrower
7,157
Rs.
Savings
Balance per
Member
9,146
5,230
5,714
5,494
5,772
9,101
7,307
16,238
16,241
21,160
20,389
13,750
15,711
21,041
19,090
0.1%
0.4%
1.0%
3.6%
0.9%
0.5%
0.6%
0.1%
2.1%
0.0%
0.9%
%
6,023
4,756
3,822
4,741
5,615
5,421
0.7%
0.1%
1.5%
0.4%
0.5%
0.8%
7,497 12.5%
5,914
21,658 11,502
20,028
27,835
17,892
25,338
18,246
20,855
23,444
23,461 13,896
28,618
Rs.
ANNEX V
Arrears Rate
Status of Partner Organizations
61%
57%
30%
44%
72%
53%
37%
51%
79%
62%
31%
41%
29%
46%
61%
47%
75%
36%
%
Savings /
Outstanding
Loan
Annual Report
2012/13
1
3
1
3
1
4
1
3
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
22 Nepal Mahila Samudayik Sewa Kendra, Dang
23 Bouddha Grameen Saving and Credit Cooperative Ltd., Surkhet
24 Batawaran Sudhar Multipurpose Cooperative Ltd., Surkhet
25 Kisan Multipurpose Coop Ltd., Kailali
26 SOLVE Nepal, Dhankuta
27 Mahila Upkar Manch, Banke
28 Community Women Development Centre (CWDEC), Saptari
29 Women Support Cooperative Ltd., Kathmandu
30 Karnali Saving and Credit Cooperative Ltd., Jhapa
31 Bindhabasini Saving and Credit Cooperative Ltd., Kavre
32 Udayadev Multipurpose Coop Ltd., Mahendranagar
33 Sana Kisan Ag. Coop Ltd., Bara
34 Maitri Multipurpose Coop Ltd., Gulmi
35 Sewa Saving and Credit Cooperative Ltd., Sunsari
36 Navodaya Saving and Credit Cooperative Ltd., Jhapa
37 Andhakar Mukti Saving and Credit Cooperative Ltd., Palpa
38 Palung Multipurpose Coop Ltd., Makawanpur
39 Gangamala Saving and Credit Cooperative Ltd., Surkhet
40 Biswasilo Saving and Credit Cooperative Ltd., Bardiya
41 Unnati Saving & credit Cooperative Ltd., Pokhara, Kaski
42 Nayapati Saving and Credit Cooperative Ltd., Kathmandu
43 Pragatisil Mahila Bikas Multipurpose Cooperative Ltd., Makrahar,
Rupandehi
Districts
21 Navaprativa Saving and Credit Cooperative Ltd., Nawalparasi
The Partner for Safe, Sensible & Sustainable Microfinance
1
1
1
2
3
1
2
4
3
2
4
3
5
10
5
7
5
7
4
6
5
7
6
5
5
9
10
13
4
10
15
15
19
19
13
8
43
42
38
39
48
41
39
41
51
48
59
No. No.
10
No.
Branches
4
Microfinance Institutions
Total Staff
19 Manushi, Kathmandu
S.N
Members
2,030
2,177
2,308
2,570
2,672
2,769
3,905
4,007
4,600
4,619
5,084
6,166
7,323
8,263
8,355
8,647
10,450
12,107
12,596
13,131
13,723
14,250
14,512
15,548
No.
Borrowers
1,483
1,106
379
1,311
1,421
1,677
2,435
2,827
3,531
2,249
3,289
2,712
3,999
6,642
6,729
6,060
5,275
7,548
5,918
11,749
9,640
9,575
7,960
10,778
No.
Overdue Loan
Outstanding
Loan
Savings
Balance
21,129
14,449
33,315
8,044
9,336
28,724
19,535
22,948
36,707
16,750
197,383
27,258
70,912
80,757
76,054
54,554
50,027
48,769
46,841
64,143
66,755
88,772
74,332
114,668
29,892
26,111
57,575
15,929
16,330
40,144
39,875
57,958
54,501
32,568
315,212
46,534
62,812
176,171
124,574
71,726
79,574
131,657
112,105
146,444
127,764
145,294
142,477
175,473
%
Borrowers /
Members
Outstanding
Loan per
Borrower
4,421
9,683
9,773
9,103
6,309
4,787
4,028
3,719
4,885
4,864
6,230
5,122
7,375
Rs.
5,003
5,727
7,980
3,626
12,150
11,492
3,130
3,494
23,938 10,374
16,376
20,501
15,435
14,481
95,838 38,824
17,158
15,707
26,524
18,513
11,836
15,085
17,443
18,943
12,464
13,253
15,174
17,899
16,281
Rs.
Savings
Balance per
Member
624 73%
49 51%
6,637
20,157 10,409
23,608
210 16% 151,912 14,435
- 51%
- 53%
877 61%
46 62%
240 71%
120 77%
- 49%
313 65%
140 44%
- 55%
1,962 80%
845 81%
1,118 70%
135 50%
173 62%
- 47%
- 89%
8 70%
- 67%
- 55%
1,180 69%
Rs. in '000 Rs. in '000 Rs. in '000
Arrears Rate
2.1%
0.2%
0.4%
0.0%
0.0%
2.2%
0.1%
0.4%
0.2%
0.0%
0.1%
0.3%
0.0%
1.1%
0.7%
1.6%
0.2%
0.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.7%
%
71%
55%
58%
51%
57%
72%
49%
40%
67%
51%
63%
59%
113%
46%
61%
76%
63%
37%
42%
44%
52%
61%
52%
65%
%
Savings /
Outstanding
Loan
Annual Report
2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
1
1
1
1
1
1
1
1
2
1
1
46 Indragram Punarmilan Saving and Credit Cooperative Ltd., Chitwan
47 Sana Kisan Agriculture Coop. Ltd., Kumroj, Chitwan
48 Palpa Rara Saving and Credit Cooperative Ltd., Palpa
49 Sana Kisan Semlar Agr. Cooperative Ltd., Rupandehi
50 Sana Kisan Parroha Agr. Cooperative Ltd., Rupandehi
51 Taplejung Multipurpose Cooperative Ltd., Fungling, Taplejung
52 Kalika Multipurpose Cooperative Ltd., Rasuwa
53 Pragati Saving and Credit Cooperative Ltd., Salyan
54 Deurali Multipurpose Cooperative Ltd., Lamjung ◦
55 Shreejanshil Saving and Credit Cooperative Ltd., Kanchanpur
56 Mahila Kalyan Saving and Credit Cooperative Ltd., Chainpur-1,
1
1
1
1
1
59 Digre Saikumari Saving and Credit Cooperative Ltd., Rukum
60 Chameli Saving and Credit Cooperative Ltd., Sarlahi
61 Kedarnath Saving and Credit Cooperative Ltd., Darchula
62 Indreni Multipurpose Cooperative Ltd., Butwal, Rupandehi
63 Sana Kisan Agriculture Cooperative. Ltd., Khadawabangai,
Taplejung
64 Kanchanjanga Samudayik Multipurpose Cooperative Ltd., Fungling,
1
1
58 Parichit Saving and Credit Cooperative Ltd., Makrahar, Rupandehi
Rupandehi
1
57 Lalima Multipurpose Cooperative Ltd. Bhalpari, Rupandehi
Bajhang
1
45 Sana Kisan Agriculture Coop. Ltd., Khairahani, Chitwan
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
1
1
1
1
1
6
3
12
8
3
4
4
3
5
5
7
5
5
6
5
7
4
6
8
4
12
No. No.
1
No.
Branches
1
Microfinance Institutions
Districts
Total Staff
44 Hatemalo Saving and Credit Cooperative Ltd., Besisahar, Lamjung
S.N
Members
851
876
928
968
1,025
1,050
1,066
1,125
1,215
1,287
1,384
1,385
1,426
1,462
1,483
1,490
1,522
1,551
1,606
1,741
1,901
No.
Borrowers
357
456
828
262
854
838
576
190
357
532
597
1,127
825
687
638
1,010
964
766
1,291
1,148
1,149
No.
Overdue Loan
Outstanding
Loan
Savings
Balance
14,830
20,807
141,746
5,777
3,986
7,161
7,740
17,139
8,142
9,724
34,248
2,779
5,892
35,377
49,204
74,413
13,937
50,258
13,698
35,377
52,446
25,470
45,344
177,770
13,760
11,975
11,406
12,480
28,361
11,296
24,523
42,327
11,747
13,924
45,458
92,733
135,430
15,263
119,910
22,568
64,991
78,368
%
Borrowers /
Members
Outstanding
Loan per
Borrower
Rs.
17,481
8,529
56,612 20,320
68,205 27,589
Rs.
Savings
Balance per
Member
15,833
9,157
2,007
4,132
31,641
46,095
6,701
7,556
70,899 24,746
10,423
16,878
66,169 24,197
52,521
14,022
13,611
21,667
5,968
3,889
6,820
7,261
- 42%
- 52%
71,344 17,426
99,438 23,752
- 89% 214,698 152,744
- 27%
- 83%
45 80%
541 54%
- 17% 149,266 15,235
431 29%
79 41%
465 43%
- 81%
84 58%
672 47%
2,688 43% 145,349 33,178
- 68% 134,089 49,942
- 63%
947 49% 156,540 32,404
- 80%
- 66%
98 60%
Rs. in '000 Rs. in '000 Rs. in '000
Arrears Rate
0.0%
58%
46%
80%
0.0%
0.0%
42%
33%
63%
62%
60%
72%
40%
81%
24%
42%
78%
53%
55%
91%
42%
61%
54%
0.0%
0.0%
0.4%
4.3%
0.0%
3.8%
0.3%
1.1%
0.0%
0.6%
1.5%
2.9%
0.0%
0.0%
0.8%
0.0%
0.0%
67%
%
Savings /
Outstanding
Loan
0.1%
%
Annual Report
2012/13
1
1
1
67 Api Saipal Saving & Credit Cooperative Ltd., Geta, Kailali
68 Jaleshwor Multipurpose Cooperative Ltd., Uttarganga, Surkhet
69 Bishazari Samajik Uddhyami Mahila Cooperative Ltd., Geetanagar,
1
1
1
1
1
72 Namaste Saving and Credit Cooperative Ltd., Dhangadi, kailali
73 Kawaswoti Social Entrepreneur Women Cooperative. Ltd., Nawalparasi
74 Kaligandaki Saving and Credit Cooperative Ltd., Bharatpur, Chitwan
75 Agyauli Samajik Uddhyami Mahila Cooperative Ltd., Danda, Nawalparasi
* More than one MFIs are working in one district.
Total
1
71 Shantikunj Social Entrepreneur Women Cooperative. Ltd., Nawalparasi 1
2
2
2
15
3
1
2
3
12
3
Members
258
284
348
433
458
515
555
577
612
634
763
No.
Borrowers
121
109
182
272
343
312
291
186
441
395
203
No.
Overdue Loan
Savings
Balance
2,183
7,087
2,443
21,983
3,757
1,640
7,316
16,849
10,723
28,069
21,438
3,568
14,523
5,103
32,448
6,226
5,336
8,881
22,224
13,254
30,392
28,633
Borrowers /
Members
%
Outstanding
Loan per
Borrower
Rs.
Rs.
Savings
Balance per
Member
30,054 17,521
76,942 44,272
18,152
17,103
8,202
3,185
30,518 13,182
28,039
7,019
287,158
69%
- 47%
22,828
29,484
8,048
8,462
- 38% 133,242 24,954
9 52%
1,196 63% 119,295 50,769
- 75%
- 61%
- 52%
1,146 32% 119,483 29,201
- 72%
- 62%
- 27% 141,051 28,097
Rs. in '000 Rs. in '000 Rs. in '000
Outstanding
Loan
67 * 876 4,757 1,492,947 1,027,924 12,014,694 23,465,362
1
1
1
1
1
1
1
1
70 Siddheshwori Mahila Saving and Credit Cooperative Ltd., Urahari, Dang 1
Chitwan
1
Districts
66 Janakalyan Multipurpose Cooperative Ltd., Sunwal, Nawalparasi
8
No. No.
1
No.
Branches
1
Microfinance Institutions
Total Staff
65 Bhadrakali Multipurpose Cooperative Ltd., Semlar, Rupandehi
S.N
Arrears Rate
1.2%
0.0%
0.0%
0.2%
3.7%
0.0%
0.0%
0.0%
5.2%
0.0%
0.0%
0.0%
%
51%
61%
49%
48%
68%
60%
31%
82%
76%
81%
92%
75%
%
Savings /
Outstanding
Loan
Annual Report
2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
ANNEX VI
Staff Biographies
Mr. Shankar Man Shrestha,
67, has been working as the Chief Executive Officer of
RMDC since August 1999. Prior to joining RMDC, he was the founder Executive Director of CSD,
a national level microfinance NGO, from August 1991 to July 1999. He had worked with the
Agricultural Development Bank of Nepal (ADBN) for 25 years in various capacities such as Deputy
General Manager, the Director of Agricultural Credit Training Institute, Chief of Loan Department
Regional Manager in various development region. His academic qualification is Master of Arts in
Economics from Tribhuvan University (TU) Nepal. He has completed a special study in Agriculture
Economics from Texas A. and M. University, USA. He has also studied farm credit systems of the
U.S.A, rural finance in the Philippines, cooperative credit system in the Netherlands and Germany,
and microcredit system in Bangladesh, the Philippines and Indonesia. He has participated in
numerous training, workshops, seminars and conferences organized by national and international agencies
such as ADB, Rabobank of Holland, APRACA, APDC, USAID, JICA, and Microcredit Summit Secretariat U.S.A,
Grameen Bank, Grameen Trust on areas such as rural development, agriculture banking, microfinance, small
farmer credit, etc. He also participated as consultant in the project missions of ADB, IFAD, JICA and IDRC.
While in ADBN, he was involved in the implementation of the Agriculture Credit Project of ADB, the Small
Farmer Development Project of ADB and IFAD, and the other projects supported by GTZ, KFW, World Bank,
USAID, CIDA, etc. Mr. Shrestha has also been writing on issues of microfinance for long and are published
in journals/magazines within the country and abroad. He has also presented a number of papers and
participated as a speaker/panelist/resource person in different international conferences on microfinance
held in Bangladesh, China, Turkey, Pakistan, India, USA, Canada, the Philippines, Indonesia, Ivory Coast.
Mr. Megh Raj Gajurel, 59, is chief of the Financial Management Department of RMDC.
He joined the organization as a Manager in November 1999. Before joining RMDC, he worked for
ADBN for 21 years and for the Nepal Credit and Commerce Bank (then Nepal Bank of Ceylon
Ltd.) for more than 2 years. His academic qualification is Master in Public Administration from
TU, Kathmandu. He is accredited as fully certified trainer of the Microfinance Training of Trainers,
a distance learning course jointly organized by ADBI, World Bank TDLC and UNCDF. The major
trainings he has acquired are: i) Loan Appraisal, organized by MAC Consultants, ii) Cooperative
Society Management, organized by CICTAB in India, iii) Project Appraisal, organized by ADB/N,
iv) Financial Analysis and Delinquency Management, organized by EDA Rural Systems in
Hyderabad, v) Effective Management of Microfinance Institutions, organized at ILO International
Training Centre, Italy, vi) study visit to PKSF, Grameen Bank, ASA, IDF of Bangladesh, vii) Credit Appraisal of
Microfinance Institutions, organized by EDA Rural Systems Pvt. Ltd. Delhi, viii) ToT on Quality Training for MFIs
organized jointly by Asian Institute of Management & Citigroup in the Philippines, ix)Managing Customer
Complaints, organized by Kathmandu University, x) Workshop on Auditing of MFIs, organized by Grameen
Trust Bangladesh, xii) Developing Project Proposals conducted by ELD Lalitpur and xiv) Study visit to German
Savings Banks Finance Group organized by Savings Banks Foundation for International Cooperation (SBFIC),
Germany. Besides, he has participated in the Asia Pacific Region Microcredit Summit held in Dhaka in 2005
and presented a paper on “Challenges in Microfinance – Both in Agriculture and in the areas with low
density of population” in the summit held in Bali, Indonesia in 2008.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Mr. Tirtha Ratna Konajo, 56, is chief of the Planning and Research Department of
RMDC. He joined the organization as a Manager in November 1999. Before joining RMDC, he
worked with the Nepal Bank Limited for 14.5 years and Himalayan Bank Ltd. for more than 3.5
years. His academic qualification is Master in Business Administration from TU, Kathmandu. The
major trainings he has acquired are: i) Commercial Banking Management, conducted by
Nepal Rastra Bank, ii) Financial Statement Analysis, conducted by Ernst and Young, Singapore
in Kathmandu, iii) Credit Recovery and Management, conducted by Booze Allen & Hamilton,
U.S.A Group in Kathmandu, iv) Faculty Development Program, conducted by Reserve Bank of
India in Bombay, v) Study Visit to PKSF, Grameen Bank, ASA and IDF in Bangladesh, vi) Financial
Analysis and Delinquency Management, conducted by EDA Rural System in Hyderabad, vii)
Business Planning with Microfin, conducted by EDA Rural System in Delhi, viii) Community-Based MicroFinance and Income Generation Management for Poverty Alleviation, organized in Bangkok, Thailand, ix)
Management Information System for MFIs, organized by EDA Rural Pvt. Ltd, x) Training of Trainers Course
on Financial Analysis for MFIs, conducted by EDA Rural Pvt. Ltd.,India, xi) Reporting Skills and Professional
Writing, conducted by ELD, Lalitpur xii) Microfinance Training of Trainers Blended Learning Course, jointly
organized by ADB, Institute, African Development Bank and Tokyo Development Learning Centre, The World
bank and accredited as fully certified trainer of the microfinance distance learning course xiii) Commercial
Micro Banking Training organized by Frankfurt school of Finance and Management, Frankfurt, Germany
and ix) Study visit of MFIs of Indonesia in coordination with Microfinance Innovation Center for Resources
and Alternatives (MICRA), Indonesia. Besides, he has participated in several other workshops, seminars and
exposures related to microfinance and wholesale financing and is experienced trainer of Financial Analysis
and Delinquency Management training.
Mr. Ram Dayal Rajbanshi, 53, is chief of the Microfinance Service Department of
RMDC. He joined the organization as a Manager in October 1999. Before joining RMDC, he
worked with GTZ as an Economic Promotion Specialist for a poverty alleviation project for 20
months; with Deprosc as Project Managers for the Community-Based Economic Development
Project, Dadeldhura and Micro-credit Project, Morang for 20 months; with Bank of Maldives Ltd.,
the Republic of Maldives as a UNV Specialist (Development Banking) for 2 years; with ADBN as
a Credit Officer for about 7 years; and with Agriculture Extension and Research Project as an
Agricuture Training Officer for 3 years. He holds M.A. in International & Development Economics
from the University of San Francisco, USA and M.Sc. in Rural Regional Planning from AIT, Thailand.
He has been awarded with the University Vice-Chancellor Gold Medal for having stood first in
the examination of Bachelor degree in 1982. The major trainings he has acquired are: i) Training of Trainers
Course on Financial Analysis for MFIs, conducted by EDA Rural P. Ltd.,India, ii) Quality Training for Microfinance
Institutitons, conducted by Citigroup/AIM, Manila, iii) Middle Management Program, conducted by IIM,
Ahmedabad, iv) study visit to PKSF, Grameen Bank, ASA and BRAC in Bangladesh, v) Training of Trainers
Course on Delinquency Management & Interest Rate Setting, conducted by EDA Rural Pvt. Ltd., India, vi)
Microfinance Donor Seminar: From Donations to Investments, conducted by UNCDF/CGAP in Phnom Penh,
vii) Accountancy course conducted by MAC Consultants Pvt. Ltd. Kathmandu, viii) Non-Formal Education,
conducted at the Center for International Education, Massachusetts, USA, ix) Boulder Microfinance Training,
Turin, Italy and x) Program in Computer Applications Development, AIT, Bangkok.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Mr. Pritha Bahadur Thapa, 43, is a Manager at the Microfinance Service Department
of RMDC. He joined the organization as an Officer in June 2000. Just before joining RMDC, he
worked with CSD as Chief of Rural Finance Sector of CBED project, Jumla for 30 months and as
Program Supervisor of Self-help Banking Program for 6 months. His academic qualification is Master
in Business Administration from TU, Nepal. The major trainings he has acquired are: i) Grameen
Generalized System, organized at Grameen Trust, Bangladesh ii) Financial Analysis and Delinquency
Management, conducted by EDA Rural System in Hyderabad, iii) Audit of MFIs, conducted by
Grameen Bank, Bangladesh, iv) Training of Trainers Course, organized by CECI, Kathmandu, v)
Facilitation Skill, conducted by ICA, Kathmandu vi) Institutional Development of Savings and Credit
Organization, organized by CECI, vii) Operational Procedures, Supervision and Monitoring System
of MFIs, organized at PKSF, Bangladesh, viii) Credit Appraisal of Microfinance Institutions, organized
by EDA Rural Systems Pvt. Ltd., India ix) Study visit to PKSF, Grameen Bank, ASA and IDF of Bangladesh, (x)
Credit and Risk Management, organized by the Citigroup and the Asian Institute of Management (AIM) in
Manila, the Philippines (xi) Training of Trainers organized by RMDC, Kathmandu, (xii) Microfinance Training
of Trainers Blended Learning course, jointly organized ADB, Institute, African Development Bank and Tokyo
Development Learning Centre, The World Bank and accredited as fully certified trainer of the microfinance
distance learning course, xiii) Participated in SAARC Finance Seminar “Targeted Credit Program in SAARC
Region” organized by Central Bank of Nepal, xiv) Participated in Asia Microfinance Forum 2010, Colombo,
Srilanka, xv) Exposure visit to German Savings Banks Finance Group organized by Savings Banks Foundation
for International Cooperation (SBFIC), Germany and xvi) Participated in 3rd International Trainers’ Training
Program organized by Indian Institute of Banking & Finance (IIBF), Mumbai, India. Besides, he has expertise in
facilitating microfinance workshops, trainings and preparing business plan for MFIs.
Ms. Annapurna Shrestha, 43, is chief of the Institutional & Social Development Department
and Human Resource Management Department of RMDC. She joined the organization as an
Officer in June 2000. Before joining RMDC, she worked with the CSD, Kathmandu for four years.
Her academic qualification is Bachelor of Arts from TU, Kathmandu. The major trainings she has
acquired are: i) Operational Procedures, Supervision and Monitoring System of MFIs, organized at
PKSF, Bangladesh, ii) Disbursement and Project Management, conducted by ADB in Kathmandu,
iii) Training of Trainers, conducted by Institute of Cultural Affairs (ICA), Kathmandu, iv) Facilitation
Skill, conducted by ICA, Kathmandu, v) Grameen Management Training on Grameen Banker
International, conducted at Grameen Bank, Bangladesh, vi) Participatory Monitoring and
Evaluation, conducted by ELD, Kathmandu, vii) study visit to the Grameen Bank, ASA and IDF in
Bangladesh, viii) Financial Analysis and Delinquency Management organized by RMDC, ix) Credit
and Risk Management, organized by the Citigroup and AIM in Manila, x) Training on Developing Assertiveness
organized by the Kathmandu University xi) Prudential Banking Regulations, organized by MAC Consultants
(P.) Ltd. xii) The Boulder Microfinance Training in Turin, Italy organized by The Boulder Institute of Microfinance
& The International Training Centre of the ILO, xiii) Workshop on Gender Entrepreneurship and Economic
Empowerment to South Asia organized by Asian Development Bank, xiv) Second National HR Conference
organized by NBTI, Kathmandu xv) Study visit to German Savings Banks Finance Group organized by Savings
Banks Foundation for International Cooperation (SBFIC), Germany and xvi) Study visit of MFIs of Indonesia
in coordination with Microfinance Innovation Center for Resources and Alternatives (MICRA), Indonesia.
Besides, she has expertise in organizing study visits, workshops, conferences, national & international training
programs.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Mr. Roop Bahadur Khadka, 47, is chief of the Internal Audit and Supervision Department
of RMDC. He joined the organization as an Officer in June 2000. Before joining RMDC, he
worked with the Far Western Rural Development Bank, Dhangadhi for six years. His academic
qualification is Bachelor of Commerce (Audit) from Bombay University, India. The major trainings
he has acquired are: i) Operational Procedures, Supervision and Monitoring System of MFIs,
organized at PKSF, Bangladesh, ii) Disbursement and Project Management, conducted by ADB,
Kathmandu iii) Training of Trainer’s Course on Supervision of MFIs under Second-Tier Institution,
organized by NRB, Kathmandu, iv) Audit of MFI, conducted by Grameen Bank, Bangladesh,
v) Financial Analysis and Delinquency Management, organized by RMDC, vi) Visual Basic 6
Programming, conducted by CSE, Kathmandu, vii) Credit Appraisal of Microfinance Institutions,
organized by EDA Rural Systems Pvt. Ltd., India, viii) Review Workshop on Tax Act, 2058, organized
by MAC Consultants, Kathmandu, ix) Monitoring & Supervision of MFIs, conducted by PKSF, Bangladesh, x)
Participatory Monitoring & Evaluation, conducted by ELD, Kathmandu, xi) Study visit to Grameen Bank, ASA
and IDF, organized by IDF, Bangladesh xii) Internal Audit of MFIs, conducted by EDA Rural Pvt. Ltd. Delhi
xiii) Training of Trainers conducted by ELD, Kathmandu, xiv) Anti-Money Laundering Workshop, organized
by Nepal Rastra Bank xv) Training on International Financial Reporting Standards (IFRS), conducted by
Accounting Standard Board (ADB) Kathmandu, xvi) Operational Management of Microfinance focusing
on Non- interest based microfinance, organized by Colombo Plan, Govt. of Indonesia & NAM CSSTC,
Indonesia, xvii) National HR Conference 2011, organized by NBTI, Kathmandu and xviii) Observation visit to
German Savings Banks Finance Group organized by Savings Banks Foundation for International Cooperation
(SBFIC), Germany. Besides, he has expertise in accounting, supervising and auditing of MFIs, and facilitating
training programs on the topics such as microfinance operation, branch management, internal audit, risk
management, motivation and leadership.
Mr. Basu Dev Lamichhane, 45, is a Senior Officer at the Supervision Department of
RMDC. He joined the organization on 16th July 2004. Before joining RMDC, he worked with the
Rastriya Banijya Bank Ltd. (particularly for the Priority Sector Credit Program) for 17 years as Senior
Assistant. His academic qualification is MBA from TU, Nepal. The major trainings he has acquired
are: i) Training on Production Credit for Rural Women, organized by Women Development
Training Centre , Kathmandu, ii) Priority Sector Credit Program, organized by Nepal Rastra Bank,
iii) Small Business Consultancy Course, organized by SBPP/GTZ, iv) Management Development
Program, organized by RMDC, v) Credit Appraisal of MFIs, conducted by EDA Rural Pvt. Ltd.
Delhi, India vi) Trainer Development Program, organized by RMDC, vii) Financial Analysis and
Delinquency Management, organized by RMDC viii) Training on Grameen Generalized System,
jointly organized by the Grameen Trust, Bangladesh and RMDC, Nepal ix) Training on Facilitation
and Presentation Skills organized by ELD, Lalitpur and x) Training on Sri Lankan off-Grid Micro-Hydro Financing
System, Sri Lanka, organized by ESAP/AEPC.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Mr. Bhola Nath Regmi, 39, is a Senior Officer at the Microfinance Service Department of
RMDC. He joined the organization as an Officer on 1st September 2005. Before joining RMDC, he
worked with the Nepal Commerce Campus, Minbhawan as an Assistant Lecturer for five years and
with National Human Rights Commission of Nepal as an Accountant for 5 months. His academic
qualification is MBA (Financial Management) and MA (Rural Development) from TU, Nepal. The
major trainings he has acquired are : i) Management Development Program, organized by the
Ministry of Local Development, ii) Financial Analysis and Delinquency Management, organized
by Sana Kisan Bikas Bank Ltd, iii) Credit Appraisal of MFIs, organized by EDA Rural System Pvt. Ltd.
Delhi, iv) Training on Grameen Generalized System, conducted jointly by RMDC & Grameen Trust,
Bangladesh, v) Study Visit to Grameen Bank, ASA and IDF of Bangladesh, vi) Trainer Development
Program, organized by RMDC vii) Training on Gender organized by the Department of Livestock,
Nepal, viii) Training on ‘Facilitation and Presentation Skills’ conducted by ELD, Lalitpur, ix) Training of Trainers
(ToT) conducted by ELD, Lalitpur, x) Training on Business Planning conducted by RMDC, xi) Training of Trainers
(ToT) organized by RMDC and xii) Microfinance Training of Trainers Blended Learning course, jointly organized
ADB, Institute, African Development Bank and Tokyo Development Learning Centre, The World Bank and
accredited as fully certified trainer of the microfinance distance learning course.
Mr. Anil Krishna Joshi, 44, is a Senior Officer at the Human Resource Management
Department of RMDC. He also works as a Company Sectretary of RMDC. He joined RMDC in
October 1999 as a Senior Assistant. Before joining RMDC, he worked with the Institute for Integrated
Development Studies (IIDS), Kathmandu for 6 years as a Data Processor. His academic qualification
is Masters in Business Administration (Financial Management) from TU, Nepal. The major trainings
he has acquired are: i) Auditing & Supervision of Partner MFIs, conducted by PKSF, Bangladesh,
ii) Organization Behavior, conducted by Nepal Rastra Bank, Kathmandu, iii) Accounting Training,
conducted by Chartered Academics International, Kathmandu, iv) Credit Appraisal of MFIs,
conducted by EDA Rural Pvt. Ltd. Delhi, v) Training Program for Company Secretary, conducted by
Institute for Law and Development, Kathmandu, and vi) Training of Trainers organized by RMDC,
Kathmandu.
Ms. Gyanu Maya Bhandari, 35, is a Senior Officer at the Planning and Research Department
of RMDC. She joined the organization as an Officer on 1st September 2005. Before joining RMDC, she
worked with P.L. Shrestha & Co., Chartered Accountants (member of HLB international) for 1 year as
an Audit Officer. Her qualification is CA Intermediate from The Institute of Chartered Accountants
of Nepal. The major trainings she has acquired are: i) Basic Computer Training, conducted by
Oxford Computer Institute, Kathmandu, ii) Accountancy, conducted by MAC Consultants Pvt. Ltd,
Kathmandu, iii) Financial Analysis and Delinquency Management, organized by RMDC, iv) Credit
Appraisal of Microfinance Institutes, conducted by EDA Rural Pvt. Ltd. Delhi, v) Trainer Development
Program, organized by RMDC, vi) Training of Trainers (ToT) conducted by RMDC, Kathmandu, vii)
Reporting skills and Professional writing Training conducted by ELD, Lalitpur, viii) Training on Design
and Development of Training Material, jointly organized by InM Bangladesh and AIT Thailand in
Bangladesh and ix) Study Visit to Grameen Bank, ASA and IDF of Bangladesh.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Mr. Pradeep Kumar Poudel, 35, is an Officer at the Microfinance Service Department
of RMDC. He Joined RMDC on June 15, 2006 as an Assistant and since then he has been working
under the department. His academic qualification is Bachelors Degree in Management from TU,
Nepal. The major training he has acquired are: i) Advanced Accounting Training, Conducted by
MAC Consultants, Kathmandu, ii) Secretarial Training, conducted by MMSI, Kathmandu, iii) Data
Base Programming, conducted by Computer Point Nepal, iv) Study visit to Grameen Bank, ASA,
and IDF of Bangladesh v) Training of Trainers (ToT) conducted by ELD, Lalitpur and vi) Financial
Analysis & Delinquency Management conducted by RMDC.
Mr. Jaya Ram Khadka, 35, is an officer at Microfinance Service Department of RMDC.
He joined the organization as an officer on 15th April 2010. His academic qualification is Masters
in Business Studies (MBS) from Tribhuwan University, Nepal. The major trainings he acquired
are: i) Financial Analysis and Delinquency Management conducted by RMDC ii) Professional
Accountant Training conducted by Chartered Academics International iii) Advanced Diploma
in Software Technology (ADST) conducted by Computer Point Nepal, iv) Business Planning
Training conducted by RMDC, v) Training on Design and Development of Training Material, jointly
organized by InM Bangladesh and AIT Thailand, vi) Training on Case Study Writing conducted by
ELD, Lalitpur, vii) Clean Energy Business Planning Training organized by clean start programme
in Lucknow, India and viii) Microfinance Training of Trainers Blended Learning course, jointly
organized ADB, Institute, African Development Bank and Tokyo Development Learning Centre,
The World Bank and accredited as fully certified trainer of the microfinance distance learning course.
Mr. Gobinda Prasad Poudel, 30 is an officer at the Financial Management Department
of RMDC. He joined RMDC as an officer on 15 April 2010. Before joining RMDC, he worked with
the Valley College of Technical Sciences, Kathmandu as an Accountant for one year and with
P & P Associates (Insurance Loss Assessor), Kathmandu as an Assistant Loss Assesor for 2 years. His
academic qualification is Master in Business Studies from TU. The major trainings he has acquired
are: i) Accounting Application Using Computer, conducted by ECTA Management Academy,
Putalisadak. ii) Diploma in computer Application, conducted by Public Computer and Language
Pvt. Ltd., Palpa, iii) Financial Analysis and Delinquency Management, conducted by RMDC,
iv)Training on Finance Budget 2070, conducted by C-MAC, Kathmandu and v) Study visit to
Grameen Bank, ASA and IDF of Bangladesh.
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
Mr. Bharat Kumar Singh, 38, is an officer at Supervision Department of RMDC. He
joined the organization as an officer on 13 June 2010. His academic qualification is Masters in
Rural Development from Tribhuwan University, Nepal. He has worked in Nirdhan Utthan Bank Ltd
for 6 years. The major trainings he acquired are: i) Training of trainers program on Information,
education & communication conducted by Nirdhan Plan capacity building program ii) Training of
trainer’s course on micro enterprise creation & development conducted by IEDC, iii) Management
training program conducted by KUSOM, iv) Rural credit challenges for micro financial Institutions
Conducted by NIRD, India v) Financial Analysis and Delinquency Management training conducted
by RMDC vii) Internal Audit Training conducted by RMDC, viii) Monitoring and supervision Training
conducted by RMDC and ix) Study visit to Grameen Bank, ASA and IDF of Bangladesh.
Ms. Sweta Shrestha, 29, is a Junior Officer at CEO’s office of RMDC. She joined RMDC on
October 27, 2007 as a Senior Assistant. Her academic qualification is Masters Degree in Business
Economic (Marketing) from Wigan & Leigh College, Nepal. Before joining RMDC, she has worked
with the Rising Nepal as a Reporter and the Gorkhapatra Sansthan as a photo journalist as an
intern. She had also volunteered for the United Nations Women’s Organizations (UNWO) as an
Associate Editor. The major trainings she has acquired are Beginners’ level Accounting course and
Advance level Accounting course.
The Partner for Safe, Sensible & Sustainable Microfinance
RMDC FAMILY
Annual Report
2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
Annual Report
2012/13
The spread of RMDC’s Partner Organizations
Nepal
Kilometres
40
20
0
40
80
120
160
Scale 1:2,000,000
Far Western
India
Humla
N
Mid Western
Darchula
Mugu
Bhaktapur
Jumla
Mustang
Lalitpur
Jajarkot
Manang
Rukum
Kailali
Central
Myagdi
Pyuthan
Banke
Gulmi
Palpa
Arghakhanchi
Eastern
Rasuwa
Nuwakot
Sindhupalchok
si
ara
pa
nd
eh
i
p
ala
w
Na
h
luk
Chitwan
wa
So
Kavre
Makwanpur
n
Sa
Ra
um
Khotang Bhojpur
t
tta
ri
Udayapur
th
ra
h
Te
r
ha
ht
c
an
P
ha
Illam
us
an
Dh
Sarlahi
Ma
ho
India
Rautaha
Bara
Taplejung
u
kh
Okhaldhunga
Sindhuli
Parsa
a
bh
sa
bu
um
Ru
Kapilbastu
Lamjung
Tanahuan
Syangja
Dang
Gorkha
p
Rolpa
Salyan
Parbat
Bardiya
Baglung
ing
Kaski
Pokhara
Surkhet
ha
Dailekh
Kanchanpur
ch
Achham
D
Dhad
Doti
Western
Dolpa
Kalikot
me
ra
hu
ad
Kathmandu
uta
Baitadi
d
el
China
Bajura
Dhank
Bajhang
Siraha
Saptari
Sunsari
Morang
Jhapa
Legend
Districts Covered by Partner Organizations’
Rural Microfinance Development Centre Ltd.
Regional Grameen Bikas Bank
Microfinance Development Bank
Capital
District Headquarters
93
The Partner for Safe, Sensible & Sustainable Microfinance
FI-NGO
Development Bank
Co-operative
India
Annual Report
2012/13
The Partner for Safe, Sensible & Sustainable Microfinance
Design: www.colornpixel.com
Annual Report
2012/13
Rural Microfinance Development Centre Ltd.
P.O.Box 20789, Putalisadak, Kathmandu, Nepal
Tel: 977-1-4268019, 4268020, Fax: 977-1-4247702
E-mail: rmdc@wlink.com.np, Website: www.rmdcnepal.com
The Partner for Safe, Sensible & Sustainable Microfinance