Md_ Enamul Haque.pdf - Global Microcredit Summit 2011

• Microfinance is now gaininggeneral acceptance due tofinancial inclusion of Microcredit, Micro savings, Microinsurance and Remittances.• Clients can create productivebusinesses, and recoverquickly in the aftermath of naturaldisasters;3

• Microfinance targets the poorand the economically active poorin the society to assist themcreate wealth, accumulateassets and raise income tosmooth consumption;4

• Clients can invest in betternutrition, housing, health, andeducation for their children;5

Why Invest in Human Resources Development?“Every customer is a potential reporter, and every employee is a potential spokesperson”.• Human capital is the major asset of theany company/ institutions;• Ensured better Quality, speed &maintain growth;• To learn the problem solving technique ;• To develop positive attitude and teamspeed;• To develop values & ethics;• Improvement of communication& motivation skills;• To build dynamic leadership; and• Maximization of products andqualitative services.6

Why staffs development is so important in MFI?• Most of the micro financeinstitutions is providing credit topoor by the group guaranteedapproach and collateral freeservices, so to development ofgroup dynamics skilled staffs isessential;• Collateral free loan is high risk, toskill and committed staffs isessential to maintain highportfolio quality ;7

• A wrong perception has been bubbling aroundMFIs for long regarding behavior with clientsand protection of rights; training anddevelopment on communication, clientprotection principle can ensure this away.• A well developed staffs are assets of theorganization who can carry the corporatevision; poor remuneration structure disallowthe flow intelligent breed in this sector,therefore a comprehensive training isessential.• Due to high involvement with masspopulation, decentralized managementstyle is encourage which required extensivemanagerial skills even in bottom level.• Strong association with Corporate Strategyrequires “Information Sharing”, regularconference can only ensure this.9

Operational Skill Development Areas• Following areas get special preference onskill development to run effectiveoperations at the bottom level: Formation groups; Develop leadership; Loan processing ; Feasibility; Credit appraisal ; Loan disbursement & collection; Reporting,; Books of accounting & recordkeeping; Communication; Use of automation & IT technology aspart of Transparency.10

Introduction of ASA• Established in: 1978• Microfinance Operation: 1992• Formation: NGO• Founded By: Md. Shafiqual Haque Choudhury11

Key Indicators of ASA ( 1992 & June 2011)Indicators 1992 June 2011No. of branches 159 3,177# of savers (millions) 0.14 5.10Value of savings (US$ in millions) 0.73 161.65# of active clients (millions) 0.09 4.52Loan outstanding (US$ in millions) 2.92 608.06# of total staff 1,239 21,795Cost per unit of money lent 0.166 0.045Return on equity 2.07% in 1993 6.36%Return on assets 1.31% in 1993 3.52%Operational sustainability 53.17% 182.48%Financial sustainability 47.03% 118.32% 12

Introduction of ASA International (ASAI)ASA International, an investment vehicle of Netherlandbased microfinance investor Catalyst Microfinance Investor(CMI) managed in partnership with ASA Bangladesh.Established in 2006, as Limited liability company;Total Fund is USD 125 million;Investment Location: Asia & Africa;Operation Methodology: Green field operation;Operation Strategy: ASA Cost effective and SustainableMicrofinance Model;Country of Operations: India, Philippines, Sri Lanka,Pakistan, Ghana, Nigeria and Afghanistan;Invested equity in Seilanithih & SAMIC in Cambodia14

At a Glance of ASAI (As of August 2011)ParticularsTotalGeneral Information1 No. of branches 7742 No. of borrowers (Active) 769,1483 No. of total staff 4,5844 No. of borrowers per LO 2595 Staff from ASA 70Loan Portfolio6 Loan outstanding (Principal) US$ in million 106.727 Avg. outstanding per borrower (US$) 139Loan Security/Savings/Margin Money/LCBU8 Total loan security (US$ in million) 17.93Financial Performances9 Portfolio at risk > 30 days 4.23% 15

Country-wise at a Glance of ASAI (as on August 2011)Country# ofbranches# clients Loan outstanding Savings balanceIndia 252 269,291 $ 29.6 million $ 2.5 millionPhilippine 185 160,397 $ 18.4 million $ 3.0 millionGhana 54 64,795 $ 14.7 million $ 5.4 millionPakistan 121 129,817 $ 12.5 million N/ASri Lanka 44 39,424 $ 4.2 million $ 1.7 millionNigeria 63 66,403 $ 9.5 million $ 4.5 millionAfghanistan 17 13,377 $ 2.3 million $ 0.3 million16

How ASA /ASAI develop skilled staffs?RECRUITMENT• Bulk recruitment in entry levelposition, Loan Officer in multiplescreening process;• Decentralized and local recruitment;• Minimum graduation as educationqualification;17

TRAINING• Pre Service Orientation courses: 30% theoretical and70% practical learning by doing methods;• Each one teach one: One skilled and experiences staffstake responsibilities to train up new comer throughpractical demonstrations of the daily activities;• Refreshers and up gradations’ courses after certain period ineach level;• Scope of higher training/ diploma courses in abroad.• Separate HR division who have been workingindependently without any interference.• Separate courses, contents and curriculum on training fordifferent level staffs.18

WRITTEN MANUALS, WORKSHOP AND FEEDBACK• Introduced written manual on training,operations, internal audits, accounts andfinance, HR policies etc.• Monthly basis workshop and coordinationmeetings.• Feedback session at branch level two/threetimes in month ;• Written feedback at branch level onmonitoring register;• By-routed responsibility for LO’s at theposition of cashier and BM positions;19

BENEFITS/ REMUNERATIONS• Comparatively offered good salary including others benefitsi.e.60%-70% house rent, 20% provident fund against basis, towtimes gratuity of last basic for one year , medical and conveyance,entertainment, city, cell phone, special allowances etc;• Periodical i.e. within a two years review of salary and benefitspackage;• Two festival allowance in a year;• Ensure proper working environment by ensuring proper workethics, employee conduct, open communication, security and safetyetc.• 100% costs of medical treatment covered by ASA if any one sufferingserious disease .Employees and spouse both will be entitled.• Life insurance for all level staffs.21

BENEFITS/ REMUNERATIONS• 05 years full salary and benefits to staffs families as EmployeeFamily Protection (EFP) if any one died on accident;• Allowed to take loses of personal belongings due to any robbery orunwanted accident.• Children of staffs allowed 100%-25 % weavers for higher studyin ASA University;• Loan against provident fund and gratuity with lower rate;• Scope of housing loan with subsidies rate;• 40% subsidy of Vehicle loan for BM and above level staffs in thefields.22

TRANSPARENCY AND JUSTICE• Ensured chain of comments , discipline , justice and equality among themale female, gender, race and different geographical territories;• Multitier & Automated (MIS) reportingtransparency and accountability;ensures higher• Female getting little advance of financial benefits;• Allowed to work in nearest and short distance of home to workingplace;• Residential facilitates in branch level; Food facilities in the branch’;• Presence of Grievance identification team ( GIT) & Performanceevaluation team who are working independently;• Well written HR manual;• Essence of the growth is building “TRUST” between organization andstaffs earn through mutual understanding & benefits.23

ACHIEVED AWARD• 2007 – Listed as Top microfinanceinstitute by the joint declaration of worldfamous magazine Forbes and MiXamong the Top 50 Microfinance Institutes.Each MFI’s earned scores in the categoriesof scale, efficiency, portfolio risk andprofitability.• 2008 – Awarded as most sustainablebank of the year by FinancialTimes and IFC jointly for thecategory of “at the Base of thePyramid”24

THANK YOU!Presented by:Md. Enamul HaqueExecutive Vice President, ASAChief Operating Officer, ASA InternationalWebsite: www.asa.org.bd, www.asa-international.com25