Tracking Financial Performance Standards of ... - Sa-Dhan

Constructing Loan Repayment Schedule Aging Schedule and Loan Portfolio Report for an MFI4.3 LOAN PORTFOLIO REPORT – KEY DEFINITIONS & INTERPRETATIONSIn Chapter 3, we learn about construction of two statutory financial statement (Balance Sheet and IncomeStatement) of MFI. Till now in this chapter, we learn about aging analysis. In this section, we will learn toprepare another important (non statutory) financial statement called Portfolio Report.The portfolio report provides an overview of performance of the most significant asset of an MFI, its loanportfolio. Therefore, a separate report is required to track the most important portfolio. The report becomevery crucial in a sense that safeguarding the quality of loan portfolio is primary responsibility of MFI’s management.The complete portfolio report with an aging analysis provides the desired information about the microcreditoperations. Like Income Statement, Portfolio report is also prepared for a particular period. A sampleLoan Portfolio Report is presented below (Table 13). The following discussion uses the sample report givenbelow to explain the various aspects pertaining to the loan portfolio report.Table 13 – Sample Portfolio ReportPortfolio related Data for the Year ending March 31, 2001, March 31, 2002 & March 31, 2003I II III IV VSl. Description 2001 2002 2003P1 Total value of loans disbursed during period 176,000 260,000 320,000P2 Total number of loans disbursed during period 2,200 2,600 3,200P3 Number of Active Borrowers (End of Period) 2,640 3,100 3,600P4 Average number of Active Borrowers 2,170 2,870 3,350P5 Value of loans outstanding (End of period) 104,000 140,000 168,000P6 Average outstanding balance of loans 90,000 122,000 150,000P7 Value of payments in arrears (End of period) 20,000 18,000 140,00P8 Value of outstanding balance of loans in arrears (End of period) 40,000 40,000 40,000P9 Value of loans written off during period 0 6,000 1,000P10 Average loan size 160 200 200P11 Average loan term (months) 24 24 24P12 Average number of loans officers during period 8 12 12P13 Value of Re-Scheduled Loans Outstanding 0 0 0P14 Value of Re-Financed Loans Outstanding 0 0 0P15 Value of Loan Outstanding for which Repayment is yet to begin 0 0 0Sl.NoAging Analysis of Outstanding Loans for Year Ending March 2003Type of LoanOutstandingNo. of Loans Value of Loans(IV) as a % ofTotal LoanProvisionRateProvisionAmountOutstandingI II III IV V VI VIIP16 Regular Loans 2810 128,000 76.19 % 0% -P17 Less than 30 Days past due 400 17,500 10.42 % 10% 1,750P18 Between 31- 60 days past due 150 10,000 5.95 % 25% 2,500P19 Between 61- 90 days past due 120 5,000 2.98 % 50% 2,500P20 Between 91- 180 days past due 50 3,500 2.08 % 75% 2,625P21 Between 181- 365 days past due 40 2,500 1.49 % 90% 2,250P22 > 365 days past due 30 1,500 0.89 % 100% 1,500P23 Total 3,600 168,000 100.00% - 13,12565