Transcript 2.52401_SampleBankPresentation
BANGKO PINOY RURAL BANK
MICROFINANCE EXPERIENCE
OUTLINE OF PRESENTATION
Bank Profile Previous Microfinance Experience Present Microfinance Experience Features of BPRB Microfinance Product Performance of Microfinance Product
BANK PROFILE
Established in 1974 to serve the financial needs of the rural folks of Philippines and the neighboring areas in Southeast Asia Has ___ branches/ units established as follows: Philippines - 1974 Thailand - 1997 Malaysia - 1989 Vietnam - 1998 Singapore - 1994 Indonesia - 1998
BANK PROFILE
Financial Condition:
Assets: Deposits: Loan Portfolio: Regular Microfinance No. of Depositors: No of Borrowers: Regular Microfinance Net Income
BANK’S PRODUCTS
Deposits • Savings • • Time Current Loans • Agricultural • • • Commercial Industrial Other Loans - Salary Loans - Microfinance Loans
BANK’S PRODUCTS
Other Services • Petnet/Western Union • • Uniteller Payment Center – Water District
BANGKO PINOY’S
PREVIOUS MICROFINANCE” EXPERIENCE Past “microfinance” products: • Market Vendors’ Loans • Microfinance Group Lending
MARKET VENDORS’ LOAN
Description Loan Features Lending Procedure Performance
MICROFINANCE GROUP LOAN
Description Loan Features Lending Procedure Performance
PROBLEMS ENCOUNTERED
No product manual or guidelines Missed Payments/Failure to pay the loan after maturity High Past Due Ratio Lack of monitoring/lack of peer pressure
BANGKO PINOY’S
EXPERIENCE
AS A PARTICIPANT BANK OF THE RBAP/MABS PROGRAM
Factors that Convinced the Bank to Resume its Microfinance Activity A systematic approach/technology to doing microfinance has been made available Market-driven loan product Close monitoring with the installation of MIS Deposit build up mitigate risk Frequent collection = high effective income
ADJUSTMENTS MADE IN DOING THE MICROFINANCE OPERATIONS –MABS WAY
Human Resources – new organizational structure Marketing – used flyers, posters and streamers “Our clients became our marketing arm.” Financial – allocated funds for microfinance loans and other fixed assets investments like computer hardware and software, motorcycles, filing cabinets, others
Internal Auditor
Previous Organizational Chart
Board of Directors President Vice President Unit Managers Cashier Teller Solicitor Bookkeepers Asst.Bookkeeper
SA/CA - Clerk Loan Officer Loan Clerk
Internal Auditor/Comp. Officer
New Organizational Chart
Board of Directors President Asst. to the Pres.
Cashier Teller Solicitor Vice President Area Managers Unit Managers Bookkeepers Asst.Bookkeeper
SA/CA - Clerk Loan Officer Loan Clerk Microfinance Officer Account Officer
BPRB’s INDIVIDUAL MICROFINANCE PRODUCT
KAPUSO LOAN
TARGET CLIENTS
KAPUSO LOAN
Intended for microentrepreneurs Loan sizes of P5,000.00 up to P30,000.00 for first time borrowers 2.5% monthly interest amortized equally 3% service fee deducted up front Loan term : 60 days up to 180 days Mode of payment : weekly, semi-monthly & monthly Walk in or Pick up service for loan payments & deposit
KAPUSO LOAN
Loan Security : – 1 co-maker only – Security Agreement – Above P50,000.00 - REM or Chattel Mortgage or Deed of Assignment of Deposit Deposit Build up: – Initial deposit of P100 only – Regular deposits to go with each loan payment
SIGNIFICANT THINGS LEARNED FROM THE MABS APPROACH Thorough character and credit checking Thorough cash flow evaluation Very conservative determination of debt capacity Simplified & fast processing of loan releases Zero tolerance to delinquency
SIGNIFICANT THINGS LEARNED FROM THE MABS APPROACH Market study prior to product design Product designed according to market needs Loan administration procedures documented in the Product Manual All borrowers are required to attend Client Orientation
KAPUSO Loan Performance As of January 2004
No. of Branches - 6 No. of Borrowers - 959 Loan Portfolio Balance - 8.286M
PAR more than 7 days - 2.68% PAR more than 30 days - 4.91%
KAPUSO Loan Performance As of January 2004
Cum. Amt. Of loans disbursed – P35.854M
Number of AOs - 20 Average # of loans/AO - 48 Average loan portfolio/AO – 414k
Loan Portfolio (Pesos)
9,000,000.00
8,000,000.00
7,000,000.00
6,000,000.00
5,000,000.00
4,000,000.00
3,000,000.00
2,000,000.00
1,000,000.00
1.1
1.6
1.9
2.5
3.7
3.6
3.5
4.5
4.8
4.10
6.2
7.1
0.00
8.3
Jan Feb Mar April May Jun Jul Aug Sept Oct Nov Dec Jan
Active Borrowers
1200 1000 959 822 800 692 600 400 361 410 444 458 529 200 94 0 147 209 257 Ja n Fe b Ma r Ap ril Ma y Ju n Ju l Au g Se pt 589 O ct N ov D ec Ja n
Portfolio At Risk (%)
6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Ja n F eb M ar A pr M ay Ju n Ju l A ug S ep t O ct N ov D ec Ja n