Annual Report 2003

ASA
ANNUAL REPORT
2003
1
ASA
ANNUAL REPORT
2003
2
A Brief Introduction to ASA
ASA is a non-governmental microfinance institution that provides financial services to the poor.
Throughout its history, ASA has been constantly evolving, passing through establishment,
reformative, and specialization phases. Frustrated with the bureaucratic structure of both
government and traditional NGOs, in 1978 the founder of ASA established an organization that
would have a grass-roots focus and develop consciousness raising and training programs. By
the early 1990s, ASA had begun to focus on microfinance programs, recognizing that access to
credit can empower the poor and allow them to take charge of their economic futures.
Throughout the next decade, ASA specialized in the provision of microfinance services, refining
its operational structure and developing its low-cost delivery method. ASA focused on becoming
self-reliant, sustainable and independent of donor funds, achieving this goal in 2001.
Financial self-reliance has given ASA the capability to expand its product range and target new
segments of the population. This report details the advancements that ASA has made in the past
year, and outlines ASA’s vision for the future. In a sense, ASA has now come full circle,
returning to its roots, reaching out to the poorest members of society, and entering a new
reformative phase.
Credits
Advisor: Md. Shafiqual Haque Choudhury, Managing Director. Written by: Andrea Wenham,
Md. Mustafa Kamal. Data and Financial Analysis: Mohammed Azim Hossain. Compt. Data
processed & Designed by : Md. Shafiqul Islam ‘Tutul’. Printed by: Oni Products, February
2004. Ms. Wenham’s internship at ASA is sponsored by the Aga Khan Foundation Canada and
CIDA.
3
Message from the Managing Director ............................................................. 00
List of Board of Directors and Senior Managers............................................... 00
2003 in Review ......................................................................................... 00
ASA’s Micofinance Services......................................................................... 00
Microcredit................................................................................... 00
Small Loan Program............................................................ 00
Small Business Loan Program................................................ 00
SEL Program...................................................................... 00
Microsavings.................................................................................. 00
Mandatory.......................................................................... 00
Voluntary........................................................................... 00
Insurance...................................................................................... 00
Loan Insurance................................................................... 00
Security Fund..................................................................... 00
Strengthening Human Resources: Products for ASA Staff......................... 00
Welfare Fund...................................................................... 00
Long-term Savings................................................................00
The ASA Model: Self-reliant, Effective, Microfinance Service Delivery.................... 00
Extensive Outreach.......................................................................... 00
New Organizational Structure (with Organogram) and Human
Resources
... 00
Innovative Management................................................................... 00
Cost-reducing Characteristics of ASA Branch Offices............................. 00
Impact Assessment...................................................................................... 00
ASA: A Partner and a Consultant................................................................... 00
Small NGO Partnership Program....................................................... 00
Technical Assistance and Consultancy Services..................................... 00
Microfinance Training...................................................................... 00
Internship Program......................................................................... 00
Publications................................................................................................ 00
Plan for future/2004................................................................................... 00
Financial Analysis........................................................................................ 00
ASA: a sustainable MFI free from donor dependence............................. 00
Operating efficiency and Rate of Recovery............................................ 00
Financial Analysis............................................................................. 00
ASA at a glance.......................................................................................... 00
List of Districts where ASA operates............................................................... 00
ASA Coverage: Map of Bangladesh................................................................ 00
4
5
Board and Management
Board and Management
Governing Body
President
Treasurer
Member
Member
Member
Member
Founder, Ex-Officio Member
:
:
:
:
:
:
:
Mrs. Taherunnessa Abdullah
Mr. Alauddin Ahmed
Mr. Mahbubul Alam
Mr. Matiur Rahman Chowdhury
Mrs. Mahmuda Islam
Mrs. Husniara Huq
Md. Shafiqual Haque Choudhury
Management Team Leaders
and
Section Chiefs
Founder, Managing Director
GM - SEL
GM - Program
GM – AI
GM - Audit
Director (Research)
Head – Finance & MIS
Head – Admin & Accounts
Team Leader – UNDP/MSP Philippines
:
:
:
:
:
:
:
:
:
Md. Shafiqual Haque Choudhury
Md. Sohel Mahmud 'Sagar'
Sushil Roy
Md. Enamul Haque
Ranesh Acharjee, FCA
Md. Mustafa Kamal
Mohammed Azim Hossain
Md. Tawfiqul Islam Chowdhury
Md. Kamrul Hasan Tarafder
6
Message from the Managing
Di
t
The year 2003 was the year for consolidation of ASA. This year ASA pushed to reach its
ambitious goal of 5 million clients by 2007.
For the first two-thirds of the year, ASA’s time was dedicated to organizational consolidation
in preparation for the big expansion. The first step in this process was decentralization at the
district level. As detailed later in this report, ASA’s reorganization mirror’s Bangladesh’s
administrative structure. District office staff are presently working as a team, rather than as
individuals. Several senior staff have been transferred to lead the teams, allowing ASA to
further decentralize several major responsibilities like printing and enforcement of
disciplinary action.
To ensure that ASA’s operations will run smoothly, further internal control mechanisms have
been put in place, and the function of the Audit section has been strengthened.
Through this consolidation process, ASA realized that with a little fine tuning, by developing
new products, and finding ways to cover remote areas where communication is difficult, ASA
would be able to reach 5 million within 3 years. The process gave ASA the confidence to move
forward with the big push. From this understanding, ASA top Head Office and Field
Management geared itself towards strategic planning and development of new products.
The last third of this year was dedicated to development and introduction of products and
innovations. ASA’s life insurance, introduced in 2002, has been fine tuned and is gaining
popularity. The poor are feeling the benefit of this program, which helps them not only by
building of savings, but also by covering and reducing risk to the family.
ASA has developed new products to expand outreach. ASA’s SEL Program lends to Small
Entrepreneurs and creates employment opportunities for the hard-core poor. The Flexible
Loan appeals directly to risk-avers clients. ASA is exploring new ways of delivering these
products and is opening new branches and mini-branches in remote areas, as well as
involving capable group leaders.
ASA is financially self-sufficient and is free and independent of donor grants and subsidy.
ASA is using this success to benefit the community, and this year introduced its Good
Governance and Community Assistance Programs. The Good Governance initiative is
designed to accelerate the benefit from ASA and existing community based institutions. The
program will encourage the proper functioning of Government institutions and services.
Through the Community Assistance Program ASA will provide grants and assistance to the
neediest members of society from its own income. The program will reach many community
members who are not microfinance borrowers.
ASA is confident that it can reach its ambitious outreach goal. It has demonstrated the
success of its model beyond the boundaries of Bangladesh. Through UNDP’s MicroStart
program, ASA’s technical assistance helped organizations in the Philippines and Nigeria
increase their outreach substantially.
This is a new and exciting time for ASA. ASA will continue to be flexible and innovative with
the heartfelt goal of benefiting the poor people of Bangladesh.
7
2003 in review
2003 in review
The year 2003 was one of change and evolution for ASA. Achieving financial self-sufficiency
has given ASA the capability to offer new products and expand its programs. A new
organizational structure ties it all together, ensuring that ASA remains efficient and effective.
ASA’s Security Fund protects clients’ families
An unexpected death in the family can be financially devastating to poor people. Often the
only way for poor families to pay for outstanding medical and funeral expenses is to sell off
their accumulated assets, in effect eroding the gains made through participation in
microfinance programs. Recognizing this reality, in August, ASA launched its Security Fund
Product, which, along with ASA’s existing loan insurance program, helps protect members’
families in the event of her untimely death.
Introduced in 1993, ASA’s Loan Insurance covers the amount of outstanding payments,
ensuring that ASA loans themselves do not become a burden to deceased members’
families. Outstanding loans, however, are not the only cost associated with a person’s death.
ASA’s Security Fund offers life insurance to ASA members, cushioning families through a
difficult time and helping them adjust to their new economic reality.
Variable term offered to Small Loan clients
In July, ASA began a pilot test, offering Small Loan clients the option of a 6-month loan term
rather than the standard one-year term. The 6-month term loan is currently offered in 2 ASA
branches.
ASA’s SEL Program: impacting community economic development
ASA believes that larger scale enterprises have the potential to generate positive economic
spin-off at the community level. With this in mind, ASA has targeted its SEL program at small
to medium sized business ventures that have expansion potential. The size of the loans
offered under the SEL program is larger than that offered by ASA’s Small and Small Business
Loan programs. The ultimate aim of this program is to create employment opportunities for
the hard-core poor by contributing positively to community economic development. At present
ASA has 20 specialized SEL branches, and is integrating the program into all of its regular
branches.
New Organizational Structure: Field-based management facilitates rapid and
effective decision making
In November, ASA updated its organizational structure to ensure that as it diversifies its
products and programs, hires new types of staff, and opens new mini-branches, it is able to
maintain the high standards of monitoring and accountability that have helped to build its
international reputation. The new structure, outlined on page 11-13, is designed to strengthen
field level activities and facilitate rapid decision-making and problem solving.
8
ASA’s Microfinance Services
Since 1991, ASA specialized in microfinance, reaching over 2.34 million of the poor. ASA
now offers a comprehensive range of micro credit, savings, and insurance services that
enable members to take control of their financial futures. By specializing in microfinance, ASA
has been able to deliver efficient services while remaining financially self-sufficient.
Microcredit
Small Loan Program
All ASA loans are made to
individuals, with no collateral
or group liability component.
The service charge is
calculated flat on the principle
of the loan. Four weeks after
members
pay
a small
admission fee, they are
eligible to receive their first
loan. Repayment begins 15
days after disbursement. Loan
application and payment
processes are standardized,
making them simple to
understand and transparent to
clients.
ASA’s basic loan program offers small loans to women whose
monthly income does not exceed Tk. 3,000 and who own less
than 0.5 acres of cultivatable land. The aim of the program is
to provide poor women with capital so that their households
can engage in small income generating activities (IGAs).
Typical IGAs include paddy husking, livestock rearing,
handicraft manufacture and rickshaw pulling. Women benefit
from these activities in 2 ways: the income generated by these
activities will supplement household income and women gain
increased bargaining power as they are able to make a larger
financial contribution to the household. Initial loan values
range from Tk. 6,000 to Tk. 20,000 in urban areas and from
Tk. 4,000 to Tk. 6,000 in rural areas. The term of the small
loan is 1 year1, in which clients make 46 equal payments, with
6 weeks grace period. The service charge is 15% flat on
principal. Subsequent loans increase by increments of Tk.
1,000 to Tk. 5,000. Women attend weekly meetings of 20-30
members where payments are made and savings collected.
At the end of 2003, ASA had 96,594 groups with 2,253,592
members. Total loans disbursed under this program was Taka
74,183 million, with Taka 63,751 million realized and Taka
10,432 million with service charge outstanding. ASA’s
recovery rate for the small loan program was 99.92%.
1
ASA is currently pilot testing different terms for Small Loan
clients.
9
Small Business Loan Program
ASA’s Small Business Program offers loans
to men and women who have demonstrated
a competence in business, but lack capital
necessary for expansion. This product is
aimed at established business people with
medium sized enterprises. Initial loan size is
Tk 15,000- Tk. 20,000, with subsequent
loans increasing in increments of Tk. 5,0008,000. Like the Small Loan program, the
term of the Small Business Loan is 1 year,
with a service charge of 15% flat on the
principal.
At the end of 2003, ASA had 80,862 clients
in the Small Business Program. Total loans
disbursed was Taka 7,949 million, with Taka
7,061 million realized and Taka 888 million
with service charge outstanding. The
recovery rate for the Small Business
Program was 99.88%.
Small Entrepreneur
Program (SEL)
Lending
ASA’s SEL program is aimed at enterprises
that are larger than those targeted by the
Small Business Program that have the
potential
to
create
employment
opportunities. Initial loans range in value
from Tk. 30,000 to Tk. 150,000. Three
payment schedules are possible, with terms
of 1 year, 1.5 year, or 2 years. SEL loan
recipients provide ASA with cheques for
their payments, which gives ASA legal
collection and enforcement mechanisms
that are not present in ASA’s other loan
products.
At the end of 2003, ASA had 2,839 clients in
the SEL Program. Total loans disbursed was
Taka 246 million, with Taka 37 million
realized and Taka 209 million outstanding
with service charge. The recovery rate for the
SEL Program was 97%.
loans must keep 10% of the loan’s principal
in their accounts, but have free access to the
remainder of their savings. Since 1997, ASA
has offered both mandatory and voluntary
savings programs to its clients. Savings
benefit both ASA and its clients, as
mobilized savings are capitalized and added
to the revolving loan fund (RLF.)
Mandatory
Members with Small Loans are required to
save Tk 10 weekly. Clients in the Small
Business Program are required to save Tk 20
weekly. There is no mandatory savings
requirement for SEL clients.
Voluntary
In addition to their mandatory savings
contribution, ASA members can save as
much as they like in. Group members may
withdraw up to Tk. 1000 (urban) and Tk.
500 (rural) at their weekly group meetings.
Members who wish to withdraw more than
this amount can do so simply by going to the
ASA branch.
Total savings deposits from July 1992 to
December 31, 2003 were Taka 13,349
million and balance at the end of December
31, 2003 was Taka 2,804 million.
Insurance
ASA offers two insurance products to its
clients that help them to mitigate the
uncertainty in their lives.
Loan insurance
ASA loan insurance ensures that a member’s
loan does not become a burden to her family
in the case of her death. The
Microsavings
The poor can and want to save. ASA was
among the first NGOs to understand that
savings are of no use to clients if they are
locked in by the MFI. In 1997, ASA proposed
a bold new policy that would allow members
to withdraw their savings as needed.
Members with Small and Small Business
10
premium is Tk. 3 per thousand loaned, and
is mandatory for Small and Small Business
Loan clients. ASA insurance pays a benefit
equal to the amount of principle repaid.
Year-wise premium deposits and payments of ASA insurance last 5 years (1998-2003)
Year
1998
1999
2000
2001
2002
2003
Premium Deposit
# of
Taka
borrowers
722,411 12,527,704
864,155 22,153,322
1,141,526
7,620,522
1,414,931 26,410,494
1,976,473 64,228,591
2,322,200 81,538,593
Families
#
1,375
1,582
1,790
3,884
10,023
2,359
Member’s Security fund (Life Insurance)
ASA’s security fund provides the families of
members with a lump sum benefit in the
case of the member’s untimely death. The
premium for this product is Tk.10 per week
for Small and Small Business Loan
members, and Tk.500/year for SEL clients.
In the case of a member’s death, the security
fund will pay an amount equal to 6 times the
total premium paid by the member. If a
Claim Payment
Taka
Yearly Net
Balance
6,864,184
5,663,520
8,904,000
13,249,322
10,492,686
(2,872,164)
23,236,734
3,173,760
61,316,864
2,911,727
28,653,925
52,884,668
BALANCE
Accumulated
Balance
61,149,582
74,398,904
71,526,740
74,700,500
77,612,227
130,496,895
member chooses to leave ASA within 50
weeks of beginning to contribute to her
security fund, she will be refunded the total
premium paid in without interest. If she
leaves within 51-399 weeks, she will be
refunded the total premium paid in plus 3%,
and if she leaves ASA after more than 400
weeks of contributing to her security fund,
she will receive her total premium plus 4%
interest.
Year-wise Members Security Fund (August – December, 2003)
Month
August
September
October
November
December
TOTAL =
Premium
Paid by
mem
87,711,440
92,958,410
85,303,800
78,835,360
92,107,864
436,916,874
Returned to clients on
withdrawl from ASA
Mem
Amount
16,804
1,646,710
34,966
1,336,450
36,841
3,523,140
34,279
2,761,480
35,939
2,595,938
158,829
11,863,718
Strengthening Human Resources:
Products for ASA Staff
Staff Welfare Fund
ASA’s staff welfare fund provides a benefit to
staff members in the event that they, or their
immediate families (spouse and children)
incur serious medical expenses. All staff
make a monthly contribution to the Fund
that is pro-rated based on their salary. ASA
supplements these contributions with
income earned through its Technical
Assistance and Consultancy Services.
At the end of 2003, the Staff Welfare Fund
stood at Tk.2,346,489.
Payments to
members families
Mem
Amount
36
3,330
140
29,570
165
60,186
214
109,370
299
221,650
854
424,106
END BALANCE
Mem
Amount
2,039,266
86,061,400
2,167,420
177,653,790
2,049,882
259,374,264
2,217,049
335,338,774
2,279,331
424,629,050
2,279,331
424,629,050
Long-term Savings
ASA offers a long-term savings scheme to its
employees and their families, many of whom
themselves have difficulty accessing the
formal banking system. Under this program
participants make Tk. 300, 500 or 1000
monthly installments for a fixed term of 5
years,
earning
7%
interest
yearly.
Participants may withdraw from this
program at any time subject to a small
interest penalty.
At the end of 2003, the Long-term Savings
balance was Tk. 9.3 million.
11
The ASA Model: Self-reliant, Effective
Microfinance Service Delivery
Extensive Outreach
ASA has built an extensive infrastructure
that reaches throughout Bangladesh. In
2003, ASA opened 116 new regular
Branches, 20 specialized SEL Branches, and
69 District Offices. At the end of 2003, ASA
had a total of 1,288 branches: 196 urban &
1,092 rural.
New Organizational Structure
The keys to ASA’s sustainable microfinance
model
are
standardization
and
decentralization. With the introduction of
new products and services, ensuring that
suitable
operational
procedures
and
monitoring systems are in place is crucial.
ASA’s new operational structure reflects this
priority, streamlining and updating fieldlevel structures and resulting in three tiers of
Management: Branch, District, and Head
Office. A fourth tier, at the Thana level, will
be pilot-tested in approximately 50 highvolume areas. Under this new structure,
mid-level Managers are based in the field,
improving communication between staff and
resulting in efficient problem solving. Dayto-day operations and administrative
responsibilities are decentralized and made
at the District Level, facilitating rapid and
effective decision-making.
The core of ASA’s operations is its 1,288
Branches. ASA’s Branch Managers each
supervise three to six Loan Officers (LOs)
responsible for the delivery of ASA Small
and Small Business Loans, as well as nearby
ASA mini-branch staff and contract-based
Credit Representatives who administer
ASA’s Flexible Product. ASA’s SEL Program
is currently administered from 20
specialized SEL Branches, and is being
integrated into all regular Branches.
ASA plans to strengthen management at the
Thana level by pilot-testing Thana
Coordinators (TCs) in approximately 50
Thanas with strong ASA activity (more than
four Branches, several Outposts, and
numerous Credit Representatives.) This
pilot-test will coincide with the introduction
of ASA’s Good Governance and Community
Assistance Programs (see November edition
of New Vision.) TCs will be based out of the
Thana Headquarters, and will be responsible
for liaising with Thana level officials and
increasing ASA’s visibility.
ASA has improved its operational efficiency
by basing mid-level Managers in the field
and
mirroring
the
government’s
administrative structure. ASA’s District
Teams are based in Bangladesh’s District
Towns, and supervise all ASA Branches
located within the Administrative District.
With this change, ASA aims to facilitate
effective, coordinated and meaningful
communication between itself and local
government.
The District Teams are comprised of District
Officers (DOs,) District Managers (DMs,)
District Administrators (DAs,) and Field
Auditors. In each District, the most senior
staff member acts as Team Leader.
Each District Officer (DO) supervises 9-10
Branches, monitoring each Branch every 15
days. In districts with few Branches, the DO
himself acts as Team Leader, reporting
directly to Head Office. In medium sized
districts with multiple DOs, the DO reports
to a District Manager (DM), who assigns
specific Branches to the DOs, and oversees
their performance. In larger districts, DOs
are supervised by a District Administrator
(DA,) who is an experienced senior level
staff formerly based at ASA’s Head Office. In
addition to supervising the Team, each
DM/DA supervises a number of Branches
directly.
Following ASA’s low-cost standardized
methodology, all District Teams sit together
in one room of the District Office. All Teams
12
hold weekly coordination meetings, at which
problems identified through field visits are
discussed, tasks are prioritized, and
solutions to problems proposed. This
structure
facilitates
mutual
sharing,
discussion, team-wise problem solving, and
collective decision-making. In addition,
basing senior managers in the field ensures
that DOs receive proper guidance during a
crisis or critical period.
By increasing operational decentralization,
ASA has eliminated the burden of day-today operations on its central office staff and
freed them to focus on policy level
monitoring and formulation. This structure
is more appropriate at ASA’s current stage of
organizational evolution and complex
management.
ASA’s Managing Director (MD) provides
policy direction and leadership. The Central
Office staff has been consolidated into one
team headed by the General Manager
(Operations), which oversees field-level
activities and develops policy. The Central
Office Operational Team is supported by
Accounts, Management Information System
(MIS)
and Finance, Research and
Documentation,
Human
Resource
Administration, and Audit personnel.
ASA’s General Body is composed of 60
members of the general public including 26
representatives of the landless poor. ASA’s
seven member Governing Body defines and
defends the organization’s mission by
approving policy direction.
13
ASA-ORGANOGRAM
GENERAL BODY
GOVERNING BODY
MANAGING DIRECTOR (M.D.)
GM - SEL
(one)
GM -Operation
(one)
GM-Alternative
Initiative
(one)
GM-Audit
(one)
Director
(Research & Partners )
Director (Program )
Deputy Director (DD)
Head Information
Central Audit
Team
Head -Finance
& MIS
Field
Auditor s
IT, MIS
& RLF
Head -Accounts
& Admin.
Asst. Director (AD)
Program Manager (PM)
District Administrator-DA/
District Manager-DM/Team
Accounts
& HRD
Logistic s
Leader - TL/ District Officer-DO
Support Staffs
Driver, Peon
Guard, Cleaner
Branch Manager – BM
Manager – SEL
Loan Officer – LO
Support Staff
Total Staff (as of December ’03): 8,065 (Head Office: 90 and Field office: 7,975)
Innovative Management
ASA has developed an innovative and
efficient operational system that allows it to
deliver microfinance services in a costeffective manner. The key to ASA’s efficiency
is the “ASA Manual”, a comprehensive,
detailed guide of all ASA processes and
procedures that has make it possible for ASA
to decentralize daily decision-making. In
addition,
ASA
has
developed
a
comprehensive monitoring and internal
control mechanism that ensures operational
quality and institutional transparency.
2.
3.
4.
5.
6.
7.
Key Characteristics of Monitoring
and Internal Control Mechanisms
Key Characteristics of Operational
System
1.
1.
2.
Management decentralized to branch
level
Innovative
recruitment/
training
methods
Standardized
and
rapid
client
identification procedure
Simple and cost-effective standardized
branch structure
Simple and standardized accounting
and record-keeping procedures (no
special accounts people required)
Mid-level staff based at regular
branches- no separate office or
secretarial staff
Comprehensive and detailed “ASA
Manual”
Staff members provide ASA with a
security deposit (earns interest)
Joint
signature
required
for
withdrawal from Branch bank account
14
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Limited daily withdrawal allowed
Cheques are preserved by a different
Loan Officer.
Borrowers monitored and scrutinized
by the Branch Manager
Groups are rotated among Loan
Officers once every 3 months for 1
month
Cash book is maintained by Loan
Officers on a rotating basis
Loan Officers switch groups once per
year
District Officers and Managers are
based in the field
Central office staff visit field regularly
Auditors at both field and Head Office
levels
External audit conducted annually
Managing Director visits branches
occasionally
4.
A high number of borrowers, high
portfolio per Loan Officer and high
fund-revolving rate minimize total
fund requirements
Simple and standardized accounting
procedures
No office assistant, technical support
or security guard
5.
6.
A new ASA branch office requires an
investment of Tk. 7.2 million for its first
year. Tk. 28,700 per month is required for
staff salaries and Tk. 7,900 per month for
office rent, electricity, gas, water, stationary,
maintenance, etc.
ASA Sustainable Microfinance Model
1,200,000
Expenditure
Income
1,000,000
800,000
600,000
These features of ASA’s operational system
allow it to expand quickly while remaining
cost-effective and financially sustainable.
400,000
200,000
The ASA model has multiple characteristics
that allow branches to achieve self-financing
and sustainable status within one year of
operations. Each ASA branch employs one
Branch Manager (BM) and four Loan
Officers (LOs.) These staff members are
responsible for managing on average 450600 group members. The key components of
ASA’s microfinance model that allow a
branch to become self-sufficient are:
1.
2.
3.
Staff members are selected within a
short time and given short, practical
training
The branch office structure is
standardized and furnished with
minimal facilities and simple furniture
Branch expenditure is standardized,
and cost ceilings have been set
Month - 12
Month - 11
Month - 10
Month - 09
Month - 08
Month - 07
Month - 06
Month - 05
Month - 04
Month - 03
Month - 02
Month - 01
0
Cost-reducing Characteristics of
ASA Branch Offices
Findings from a Recent Impact Survey
In September, ASA Research Cell designed and
initiated an Impact Assessment of ASA’s Small
Loan program. In designing the survey, ASA
Researchers aimed to determine the changes in
living conditions experienced by long-term
Income Generating Projects: Rural
Others
41%
Poultry
farming
7%
Paddy
husking
11%
Cow
rearing
29%
Fish
cultivating
12%
ASA clients. Clients were asked to recall their
situation five years ago (in 1998) and compare
this to their current socio-economic status.
The survey was carried out from October to
November on members of 3,456 different
lending groups. All of Bangladesh’s six
Administrative Divisions are represented in
15
Income Generating Projects: Urban
Paddy Cow
husking rearing
6%
15%
Others
58%
Fish
cultivating
Poultry 12%
farming
9%
the
sample.
Multi-stage
sampling
methodology was used to select 2 ASA
Divisions
from
each
Administration
Division, 3 ASA Regions from each ASA
Division (36 ASA Regions), and 4 Branches
from each Region (144 Branches.) 576 Loan
Officers each administered a structured
questionnaire to 10 members of each of 6
groups. The total sample size is 33 984, and
represents 1.6% of ASA’s 2.13 million Small
Loan clients.
The Profile of ASA’s Clients
ASA clients are engaged in a variety of
income generating activities, which are
summarized in Figures I and II. In rural
areas, 30% of ASA clients engage in cow
rearing, while 12% engage in paddy husking,
10% in fish cultivating, 7% in poultry
farming, and 41% in other activities.
Projects undertaken in urban areas have a
slightly different focus. Cow rearing is less
popular, with only 17% of clients involved in
this activity. Poultry farming is slightly more
popular than in rural areas, with 10% of
respondents participating in this activity.
The number of urban clients engaged in fish
cultivation is the same as in rural areas, with
10% of respondents indicating this as their
project.
Key Survey Results
Table I: Key Microfinance Indicators
Indicator: Asset Accumulation and Income
Capital
Increased/Improved
Rural
94%
Urban
95%
Total
94%
Average Savings Balance (TK.)
1998
2003
841
1858
999
2105
889
2003
Change in Income
Total Family Assets
Increased/Improved
Increased/Improved
93%
86%
87%
87%
91%
86%
70%
Land
Increased/Improved
68%
75%
Cattle
Increased/Improved
74%
65%
71%
Domestic Animals
Increased/Improved
58%
70%
75%
Ornaments
Increased/Improved
54%
33%
41%
Repaired/Built Home
Increased/Improved
88%
87%
88%
Rural
Urban
Total
89%
Indicator: Socio-Economic
Created Employment Opportunity
Yes
90%
90%
Quality of Food
Increased/Improved
94%
95%
95%
Seek Professional Medical Treatment
1998
2003
57%
93%
66%
94%
60%
94%
Asset Accumulation and Income
One of the goals of microfinance is to help
the poor build their asset base and
ultimately become self-sufficient. The top
half of Table I gives a summary of key
indicators of asset accumulation. 94% of
both rural and urban respondents indicated
that their capital has increased since 1998.
The average value of capital increased from
Tk. 6,443 to Tk. 16,5372 (157%) in rural
areas and from Tk. 6,296 to Tk. 14,352
(128%) in urban areas. Of respondents who
reported increased capital, 4,2% indicated
2
that this was because they had received their
loans in a timely fashion.
The data on clients’ savings balances
provides further evidence of asset
accumulation. The average savings balance
increased from Tk. 863 to Tk. 1807 (109%.)
The increase in savings was slightly higher
(112%) in rural areas than in urban areas
(107%.)
Average monthly income increased for both
the majority of rural (93%) and urban (88%)
respondents, from an average of Tk. 2432 to
Tk. 3880. Of respondents who reported that
All values are nominal.
16
their incomes did not increase, 40%
responded that their project was not
profitable, while 47% reported that they did
not use their loan for productive purposes.
Overall family assets increased for 86% of
respondents. Livestock acquisition (cattle
and domestic animals) was more important
for rural clients than urban. In addition,
ornaments appear to be more important to
rural respondents, 54% of whom indicated
that the value of these had increased,
compared to only 33% of urban
respondents.
A significant proportion of both urban (87%)
and rural (88%) clients indicated that the
value of their homes had increased. Among
clients who invested in their homes, almost
equal proportions indicated that their source
of funds for this investment came directly
from a loan (51%) and from project-related
increases in income (49%.)
Socio-Economic Indicators
The majority of respondents (89%)
indicated that they have increased their
number of employees since 1998. In 1998,
clients indicated that they employed a total
of 26,604 members of their families, while
by 2003, this number had increased by
16,998 to 43,602. The number of non-family
members employed by ASA clients increased
by 372, with 8,901 workers employed in
1998 and 9,273 in 2003.
95% of respondents indicated that the
quality of food that they consume has
improved since 1998. Of those who did not
report improved food consumption, 34%
reported that this was because their project
was not profitable and their incomes did not
increase.
The number of ASA clients who visit a
medical professional (doctor) in case of
illness increased dramatically, from 60% in
1998 to 95% in 2003. While the proportion
of respondents who visited a doctor was
higher in urban areas in 1998, by 2003 the
proportion was almost equal. Only 20% of
respondents indicated that the reason that
they now seek professional medical
treatment is because of availability of funds.
28% of respondents indicated that they
sought a doctor’s treatment because they
had become aware of the benefits of
professional medical attention. Among
respondents who did not seek professional
medical advice, 35% indicated that this was
because of lack of funds, while 25%
indicated a lack of awareness of the need for
these services.
69% of rural and 86% of urban respondents
indicated that they have access to sanitary
latrine
facilities.
Interestingly,
of
respondents who did not have a sanitary
latrine, lack of awareness of their benefit
was given as the reason in almost half (48%)
of cases, far surpassing the number of
respondents who stated that it was for lack
of funds (28%.) This result has interesting
policy implications, and suggests that
awareness campaigns may be the most
crucial avenue for effecting improvements in
sanitation
ASA:
A
Consultant
Partner
and
a
Small NGO Partnership Program
In 1995, ASA implemented its NGO
Partnership program. ASA’s small NGO
partners operate in remote areas of
Bangladesh, and serve a client population
that ASA itself currently does not reach. The
objective of this program is to help small
MF/ NGOs become more efficient by
providing them with skilled manpower,
technical support and loan funds. Since the
program’s inception, more than 125
MF/NGOs have received training/technical
support from ASA. ASA is able to use its
17
experience to channel soft loan funds from
major donors to its partner NGOs.
ASA currently has 24 partners throughout
the country who are involved in this
program. At the end of 2003, they had
received loan funds of Tk. 129 million. Total
active members of the partner NGOs were
125,496 and their savings balance was Tk.
134 million. The total number of active
borrowers was 94,610 and loans outstanding
mount them was Tk. 358 (with service
charge) million.
ASA small NGO capacity building program
Sl.
Particulars
1
No of Partners
2
No of Active Group Members
3
4
2003
2002
2001
2000
1999
24
24
23
21
20
125,496
73,173
56,433
50,337
47,744
Savings (End Balance)
134,263,197
70,713,895
52,545,595
45,883,729
36,652,063
No of Active Borrowers
94,610
64,861
47,956
39,244
40,457
5
Outstanding Loan (with
S/Charge)
358,236,178
219,350,623
143,009,046
117,930,328
86,349,556
6
Fund From ASA
128,571,000
108,874,000
78,786,000
44,300,000
35,750,000
18
Technical
Assistance
Consultancy Services
risen to 110% and outreach has expanded
from 59,000 to over 95,000 clients.
and
ASA is recognized globally as a leading
provider
of
Microfinance
Technical
Assistance. ASA has shown that its low cost,
financially sustainable microfinance model
can be adapted to any interested institution,
and through its Consultancy Service, has
helped MFIs around the world build
capacity. In 2003, ASA provided Technical
Assistance to MFIs in the Philippines,
Nigeria, Yemen, Indonesia, India, Pakistan,
and Cambodia.
Summary of Performance, Nigeria ( up to
December 2003)
Key Result
Area
Cleint (Members)
outreach
Active borrowers
Loan disbursement
(in
millions
of
Naira)
Savings (in millions
of Naira)
Branches
Borrowers
per
Credit Officer
Summary of Phase-II Performance,
Philippines (up to December 2003)
Key Result Area
Client Outreach
Active Borrowers
Loan Portfolio (millions
of Peso)
Savings (in millions of
Peso)
Branches
Area
Staff
Baseline (31
Dec.02)
31 Dec.
03
59,039
56,299
253
132,096
119,989
487
124%
113%
92%
76
149
96%
56
13
308
125
26
813
123%
100%
164%
01
Name of
Organization
INAFI, Africa Regional Secretariat
31 Dec.
03
Growth
45,801
71,218
55%
37,084
465
57,230
969
54%
108%
69
129
87%
49
265
82
280
67%
6%
Growth
In 1998, UNDP recognized ASA’s ability as a
Technical Service Provider by designating it
an International Technical Service Provider
(ITSP) under its MicroStart Program. Now
in its second phase, through this program
ASA is providing Technical Service to 3
MFIs in the Philippines and 8 MFIs in
Nigeria. Key indicators from the Philippines
highlight
ASA’s achievements: cost per unit money
lent has decreased from 11% to 8% in six
months, while Financial Self-Sufficiency has
Sl
N
o.
As at (31
Dec.02)
Microfinance Training
ASA’s sustainable microfinance model has
attracted attention and interest from
microfinance practitioners, researchers,
representatives from the banking sector, and
donors around the world. The “ASA
Microfinance Training Institute” arranges
training for interested parties, designing and
delivering custom programs. ASA’s training
sessions include classroom presentations,
group
discussions,
and
field
level
observation. In 2003, 226 guests from the
Philippines, India, Pakistan, UK, Kenia,
Vietnam, Japan, USA, Sri Lanka, Arfika,
Italy, Uganda and Papua Newgin visited
ASA to participate in training programs.
Country
Africa
No. of
Participan
ts
1
Date
7 January, 2003
19
02
03
04
05
06
07
08
09
10
PPAF
NDTF Sri Lanka & PKSF, Bangladesh
Taraqee Foundation, Pakistan
Visitor from Italy
BIRD/NABARD/RB (CIRDAP)
NABARD/RB India & PKSF Bangladesh
Japan Aichi University
Guest from USA
Plan International, Bangladesh
Pakistan
Sri Lanka
Pakistan
Italy
India
India
Japan
USA
Bangladesh
1
8
4
1
20
15
1
1
1
11
12
13
14
15
16
17
Small & Micro Enterprise
INCOME Project-CARE Bangladesh
Women Union's
SPO
Faulu, Keney
UK, CARE
PKSF
10
8
1
1
9
1
8
18
19
20
Delegation from Papua New Guinea
Mr. Junaid Qureshi-Intern from Pakistan
ASSB Bangladesh
Kenya
Bangladesh
Vietnam
Pakistan
Kenya
UK
Uganda
Papua New
Guinea
Pakistan
Bangladesh
21
22
23
24
25
26
IUB & University of London
Aga Khan Foundation
INCOME Project-CARE Bangladesh
Aga Khan Foundation
INCOME Project-CARE Bangladesh
INAFI, Bangladesh
2
6
22
6
22
1
27
28
Papua New Guinea
Pakistan Microfinance Network
Card. Life Bank, Milamdec and ASKI in
Philippines
CCT, Philippines
BIRD, India
FWWB, India
INAFI, Africa
UK
Bangladesh
Bangladesh
Bangladesh
Bangladesh
Bangladesh
Papua New
Guinea
Pakistan
25-May-03
June 10-15, 2003
June 15-19, 2003
26 Jun.03- 28 Aug.
03
30-Aug-2003
Aug. 17-21, 2003
Aug. 21, 2003
Aug. 22-27, 2003
Sept. 28-30, 2003
6
6
Oct. 03-11, 2003
Oct. 06, 2003
Philippines
Philippines
India
India
Africa
7
3
20
19
1
Nov. 06-20, 2003
Dec. 01-15, 2003
Dec. 11 & 13, 2003
Dec. 17-18, 2003
Dec. 27 & 29, 2003
29
30
31
32
33
Student Internship Program
ASA’s Student Internship Program was
developed in cooperation with four of
Bangladesh’s leading universities and
colleges. Established in 1998, the program
uses a participatory approach and places
BSS and MSS students in ASA branches for a
7
1
6
7 January, 2003
16-18 January, 2003
19-25 January, 2003
20 February, 2003
23-25 Feb. '2003
26 February, 2003
3 February, 2003
4 February, 2003
5 February, 2003
18-24 February,
2003
2-06 March, 2003
12 March, 2003
25 March, 2003
26-27 April, 2003
7 May, 2003
24-May-03
period of 60 days. ASA offers this program
free of cost. During their placements,
students receive a general orientation on
microfinance followed by practical training
on effective implementation of microfinance
programs. As part of their internship,
students must submit a written report to
their academic institutions. In 2003, ASA
20
hosted interns: from Dhaka University,
Lamatia Mohila College, Bhawal Badere
Alam Govt. College and Shekh Borhanuddin
College.
ASA’s internship program also attracts
international participants. In 2003, ASA
Research Cell hosted one intern from
Canada.
ASA Publications in 2003
SL
Publications
Written/Edited by
Published in
1
ASA Facts & Figure 2002
Md. Mustafa Kamal
2
Annual Roport 2002
Md. Mustafa Kamal
3
ASA At Present (June 2003)
Research & MIS Cell
November 2003
4
ASA New Vision (Nov. 2003)
Andrea Wenham
November 2003
5
ASA New Vision – Bangla Ver. (Nov. 2003)
Shyamol Kumar Kantha
December 2003
6
Fighting Poverty with Innovative Business Strategy Dr. Mustaq Ahmed
Since 1991, ASA has specialized in
microfinance. The cost-effective operational
model that ASA has developed ensures that
the organization remains sustainable.
In 2003, ASA earned a total of Tk. 2,866
million in income: Tk. 2,710 million from
service charges, Tk. 139 million from bank
interest, Tk. 7 million from membership fees
and Tk. 10 million from other sources
(publication sales, passbook sales, used
newspaper sales, etc).
Income
4.85%
0.24%
December 2003
personnel
34.41%
imputed costs
34.28%
loan loss
provision
6.07%
financial costs
19.54%
personnel
office expenses
loan loss provision
imputed costs
office
expenses
5.70%
financial costs
The year-end net margin in 2003 was Tk.
1,218 million.
No Dependence on Donors
0.35%
94.56%
service charges
membership fees
June 2003
Expenditure
Financial Analysis
ASA: A Sustainable MFI
March 2003
bank interest
other
Total expenditure in 2003 was Tk. 1,648
mllion: Tk. 567 mllion on personnel, Tk. 94
million on office expenses, Tk. 322 million
in financial costs, Tk. 100 million loan loss
provision, and Tk. 565 million imputed
costs.
As ASA is financially self-sufficient, it does
not need grants or donations from outside
sources. ASA’s total revolving fund or loan
fund was Tk. 13.15 billion at the end of 2003.
This includes Tk. 6.16 billion of ASA’s own
funds (including reserve,) Tk. 3.45 billion
PKSF loan, Tk. 3.23 billion member’s
savings (including member security fund),
Tk. 79 million CORDAID loan and Tk. 230
million from other sources.
Funding sources of ASA
21
1%
2%
47%
24%
Rate of Recovery (%) (1998-2003)
101.00
100.50
100.00
99.95
99.96
99.93
99.96
99.93
99.90
99.50
99.00
98.50
98.00
97.50
97.00
26%
96.50
own funds
PKSF loan
CORDAID loan
Others
member’s savings
Operating Efficiency and Rate of
Recovery
In 1991, ASA’s focus shifted to the economic
empowerment of the poor, and it became a
specialized microfinance institution. ASA’s
innovative management style and effective
operational framework have allowed it to
maintain a very high recovery rate. In 2003,
the rate of recovery was 99.95%. In fact,
since 1995, ASA’s recovery rate has stayed
above 99%.
96.00
95.50
95.00
2003
2002
2001
2000
1999
1998
ASA continues to improve its operating
efficiency. In 2003, cost per taka lent was
0.033. ASA’s operational framework is
modified regularly based on feedback
received from the field. This process has
allowed ASA to develop cost-reducing and
income-generating elements that are applied
to all branches.
COST PER TAKA LENT
0.050
1998
0.041
1999
0.043
2000
0.041
2001
0.034
2002
0.033
2003
0.000
0.010
0.020
0.030
0.040
0.050
0.060
Financial Statistics
Portfolio
2003
2002
2001
2000
1999
Information
Number of branches
Number of active members (in million)
Number of active clients/borrowers (in million)
1,288
1,172
1,060
824
800
2.34
2.14
1.58
1.20
1.18
2.13
1.98
1.41
1.13
1.08
Number of loan officers
5,081
4,771
4,100
3,490
3,334
Number of full time staff
8,065
7,446
6,422
5,347
5,145
Average number of borrowers per branch
1,654
1,686
1,335
1,370
1,355
Average number of members per branch
1,818
1,823
1,490
1,462
1,474
20,014
15,952
9,950
7,782
6,619
2.33
2.12
1.48
1.19
1.14
8,603
7,507
6,743
6,522
5,799
10,024
8,094
5,359
3,985
3,694
9,991
8,076
5,339
3,966
3,683
33
18
21
19
11
Loan portfolio
Loan disbursed (Taka in millions)
Number of loans disbursed (in millions)
Average loan size (Taka)
Total loan outstanding (Taka in millions)
Current (Taka in million)
Overdue (Taka in millions)
22
Portfolio
2003
2002
2001
2000
1999
Average outstanding balance by client
4,703
4,095
3,788
3,531
3,407
Average loans outstanding balance (Taka in millions)
9,059
6,727
4,672
3,840
2,952
Total loan loss provision (Taka in millions)
100.07
159.52
99.50
77.82
66.19
Total amount written off (Taka in millions)
7.40
10.05
7.72
5.93
0.46
533.62
440.94
291.47
199.70
127.80
Total savings (Taka in millions)
2,805
2,505
1,697
1,609
1,269
Compulsory (Taka in millions)
1,827
1,494
1,004
783
635
978
1,011
693
826
634
Total of savings (Taka in millions)
2,805
2,505
1,697
1,609
1,269
Small (Taka in millions)
1,115
Total loan loss reserve (Taka in millions)
Savings
Voluntary (Taka in millions)
2,533
2,261
1,509
1,414
Small business (Taka in millions)
272
244
188
195
154
Number of savings accounts (Members in millions)
2.33
2.14
1.58
1.20
1.18
Small savings a/c
2.25
2.06
1.51
1.14
1.10
Small business savings a/c
0.08
0.08
0.07
0.06
0.08
Average savings balance by account
1,202
1,172
1,074
1,335
1,076
Small (Taka)
1,125
1,100
998
1,243
1,017
Small business (Taka)
3,367
3,030
2,776
2,865
15% Flat
15% Flat
15% Flat
12.50%&15%
4-9%
6-9%
6-9%
6-9%
Information
Interest for loan
Interest offer for savings
Flat
1,862
12.50% Flat
9%
Productivity and quantitative indicators
Cost per taka lent
0.033
0.034
0.041
0.043
0.041
Cost per loan made
284
276.62
279.12
280.46
238.47
Number of active members per loan officer
461
448
385
345
354
Number of active borrowers per loan officer
419
414
345
323
325
Portfolio per loan officer (Taka in millions)
1.97
1.70
1.31
1.14
1.11
Portfolio in arrears
0.33 %
0.23%
0.38%
0.49%
0.30%
Portfolio at risk
0.45%
0.33%
0.64%
0.88%
0.80%
Loan loss ratio
0.07%
0.12%
0.144%
0.160%
0.012%
Reserve ratio
5.32%
5.45%
5.44%
5.01%
3.46%
Effective yield on average portfolio
29.92%
29.46%
27.49%
25.95%
24.05%
Effective yield on average assets
25.91%
25.45%
19.30%
24.03%
21.17%
ROE (adjusted return on equity)
25.76%
24.29%
18.15%
14.31%
9.83%
ROA (adjusted return on assets)
11.02%
7.99%
5.03%
4.79%
3.27%
Operating Self-sufficiency (OSS)
264.62%
159.61%
149.49%
136.60%
132.62%
Financial Self-sufficiency (FSS)
Financial indicators
173.94%
145.76%
135.29%
124.90%
118.25%
Total expenses/Total average assets
14.90%
17.46%
14.26%
19.24%
17.90%
Financial costs/Total average assets
2.91%
6.83%
5.72%
8.36%
6.69%
Adjustment cost/Total average assets
5.11%
1.52%
1.35%
1.65%
1.94%
Loan loss costs/Total average assets
0.90%
1.95%
1.40%
1.74%
1.81%
Admin costs/Total average assets
5.98%
7.17%
5.79%
7.49%
7.46%
Total equity/assets
50.83%
32.15%
31.60%
36.96%
33.46%
Total equity/liability
81.92%
57.13%
54.89%
51.02%
54.08%
NOTE: 2003 figures are provisional.
The Road Ahead: ASA in 2004
ASA now has both the financial and
operational capability to expand its product
23
range to develop new initiatives and target
new segments of the population. ASA is
developing new products to target the hardcore poor and victims of seasonal disasters.
The Good Governance and Community
Assistance
Program
(GGCAP)
will
strengthen
communities,
while
the
Sanitation Loan Program will contribute to
improving the health of community
members.
Targeting the Hard-core Poor
By
combining
flexible
product
design
with practical Business Development
Services, ASA has recognized that the hardcore poor have specific needs, and has
designed a low-risk, appealing product that
facilitates their transition to the formal
economy. ASA will introduce its Flexible
Product in January 2004.
ASA’s Flexible Product is attractive to riskaverse clients, as both the term and the
repayment schedule of the Flexible Loan are
tailored to `suit the specific project
undertaken by the client. The term of the
Flexible Loan ranges from one to six
months, while repayment schedules may be
monthly, bi-monthly, or a one-time
repayment at the end of the term. Initial
loan size is smaller than ASA’s Small Loan
product, and ranges from Tk. 1,000 to
Tk. 2,000, with subsequent loan increases of
Tk. 500 to Tk. 1,000. The service charge on
this product is 1% monthly on the total
principal, calculated at the time of loan
disbursement.
The savings component of the Flexible
Product is designed to facilitate even small
amounts of savings, with a mandatory
monthly requirement of only Tk.10. ASA’s
Loan Insurance and Security Fund protect
the client’s family in the event of the client’s
untimely death, further reducing the risk
associated with the Product.
In addition to integrating the Flexible
Product into all existing branches by the end
of 2005, ASA will establish 1,000 ASA minibranches in remote locations. Local staff
responsible for Flexible Product delivery and
collection will be based out of these
outposts.
Graduating clients to encourage
economic development
ASA believes that small to medium sized
enterprises have the potential to generate
positive
economic
spin-off,
creating
employment opportunities for the hard-core
poor.
24
the findings and activities of this program.
ASA is establishing a GGCA committee in
each of Bangladesh’s 480 Thanas/Upzila.
ASA is making an active effort to identify
core product clients with existing enterprises
that have expansion potential, graduating
them to the SEL program and providing
them with Business Development Services
(BDS.) ASA’s goal is to graduate one woman
from each of its members groups- an effort
that could result in the creation of 100,000
new jobs for the hard-core poor.
Building
the
foundation
economic empowerment
for
ASA’s microfinance products allow the poor
to take control of their economic futures.
Microfinance services, however, do not exist
in a vacuum. The framework within which
individuals operate limits the effectiveness
of the financial tools and an individual’s
ability to benefit from them.
ASA’s Good Governance Program will
provide
impartial
and
unpartisan
monitoring of local government and quasigovernmental services and programs,
encouraging accountability and stability in
Thana/Upzila level operations. ASA Head
Office will produce a newsletter outlining
ASA understands that microfinance is most
effective in strong communities with
effective social services and structures. With
this in mind, ASA is launching its
Community Assistance Initiative, which will
provide financial support for local,
community based social services. ASA will
set aside 2% of it income to fund this
initiative. These funds will be used to
provide grants to help disabled persons and
acid-burn victims, provide grants for legal
assistance for oppressed or divorced women,
provide educational assistance for very poor
school
children,
strengthen
primary
education by providing funds for tutoring
and private teachers to the children of
uneducated parents, provide grants to hardcore poor community members to cover the
cost of a sanitary latrine, and plan and
promote a community sanitation campaign,
developing and implementing a waste
collection service that will operate on a costrecovery
basis
(usage
fee
of
Tk.10/household/month).
A maximum of 10% of the funds given to
each
GGCAC
may
be
spent
on
administration and salaries, leaving 90% of
the funds provided to go directly to the
community,
helping
to
build
the
infrastructure needed to effectively exploit
the potential of microfinance.
25
Envisioning the Future: ASA
Concept Development
National Sanitation Plan
October 2003 was National Sanitation
month. At this time, ASA joined
Government and other NGOs in committing
to
significantly
improve
sanitation conditions both in Dhaka and
around the country. ASA’s goal is to
financing 5,000 Sanitary Latrines in Dhaka
by March 2004. ASA is currently
researching this issue and plans to introduce
a zero-interest Sanitary Latrine Loan
Program this year.
Tailoring
Loan
Products
to
Disaster-prone areas: Haor and
Monga Consumption Loans
Several regions of Bangladesh are subject to
yearly disasters. Five districts in the North
experience yearly famine, or monga, while
several districts in the East are subject to
catastrophic flooding, or haor. To help
residents of these regions cope with these
seasonal disasters, ASA is exploring the idea
of introducing a loan specifically tailored to
their needs. This product will likely be
offered in specific regions on a seasonal
basis, and will help poor residents smooth
their consumption in times of hardship.
26
ASA at a glance
ASA at a glance
Up to December 2003
1.
Year of Starting the Microcredit Program
:
2.
Total No. of Branch Offices :
: Rural areas (Branch)
: Urban areas (Branch)
1991
1,092
196
1,288
3.
Total No. of Villages
:
35,546
4.
Total No. of Unions
:
5,152
5.
Total No. of Thanas
(sub-districts)
:
490
6.
Total No. of Districts
:
7.
Total No. of Groups
: Small credit
(function as collection centers)
: Small business credit
Total No. of Group Members
: Small credit
(end of the month)
: Small business credit
8.
9.
10.
64
96,594
6,095
2,253,592
80,862
: SEL Program
2,839
: HC Poor
4,526
Total No. of Borrowers
: Small credit
(end of the month)
: Small business credit
102,689
2,341,819
2,050,936
72,681
: SEL Program
2,839
: HC Poor
4,526
Savings Balance (in million)
: Small savings
2,533
(end of the month)
: Small business savings
272
2,130,982
2,805
11.
Members Security Fund (in million)
425
11.
Total Loans (with s.charge)
: Disbursed (cumulative)
82,387
(taka in million)
: Realized (cumulative)
70,849
: Outstanding (portfolio)
11,538
12.
Rate of Recovery
:
99.95%
13.
Portfolio at Risk
:
0.45%
14.
Operational Self - Sufficiency (OSS)
:
264.62%
15.
Financial Self - Sufficiency (FSS)
:
176.94%
16.
Cost per Money Lent
:
0.033
17.
Total Number of Staff
:
8,065
27
List of Districts where ASA operates
List of Districts where ASA operates
Sl.
No.
1
Name of
District
Bagerhat
2
3
4
Bandarban
Barguna
Barishal
5
Bhola
6
Bogra
7
Brahmanbaria
8
9
C.Nawabgonj
Chandpur
10
Chittagong
11
12
Chuadanga
Comilla
13
Cox's Bazar
14
Dhaka
15
Dinajpur
16
Faridpur
17
18
Feni
Gaibanda
19
Gazipur
20
21
Gopalgonj
Hobigonj
22
Jamalpur
Name of Thana
Sadar, Chitalmari, Kachua, Mongla, Fakirhat,
Mollahat, Moralgonj, Rampal, Shwarankhola
Sadar, Lama, Alikadam
Sadar, Patharghata, Betagi, Amtali, Bamna
Sadar, Gournadi, Babugonj, Muladi, Bakergonj,
Mehendigonj, Banaripara, Ujirpur, Hijla, Agoiljara
Sadar, Lalmohan, Tazumuddin,
Charfession, Borhanuddin, Dawlatkhan
Sadar, Sherpur, Kahalu, Dupcachia, Sonatala,
Adamdigi, Gabtali, Shibgonj, Nandigram, Sariakandi,
Dhunat, Majhira
Sadar, Sarail, Kasba, Nasirnagar,
Akhaura, Asuganj, Nabinagar, Bancharampur
Sadar, Gomastapur, Shibgonj, Nachol, Bholahat
Sadar, Faridgonj, Hazigonj, Kachua,
Matlab, Sahrasti, Haimchar
Patia, Hathazari, Fatikchari, Sathkania, Lohagara,
Sitakunda, Mirersarai, Raujan, Chandnaish,
Boalkhali, Banskhali, Anwara, Pahartali, Rangunia,
Patenga, Biogid bostami, Chandgaon, Halishahar,
Kotwali
Sadar, Damurhuda, Alamdanga, Jhiban Nagar
Sadar, Choddagram, Burichang, Barura, Laksam,
Langalcort, Muradnagar, Debider, Daudkandi,
Homna, Brahmanpara, Chandina
Sadar, Chokoria, Ramu, Ukhia, Moheshkhali,
Kutubdia, Teknaf, Pekua
Mohammadpur, Savar, Dhamrai, Mirpur-1, Pallabi,
Demra, Lalbagh, Keranigonj, Sabujbagh, Uttara,
Badda, Sutrapur, Kafrul, Tejgaon, Ramna, Sutrapur,
Kamrangirchar, Dohar, Nawabgonj, Dhanmondi,
Rampura, Cantonment, Gulshan, Shampur
Sadar, Bochagonj, Biral, Birampur, Parbotipur,
Ghoraghat, Chirirbandar, Fulbari, Khanshma,
Nawabgonj, Birgonj, Kaharol, Hakimpur
Sadar, Madhukhali, Boalmari, Sadarpur,
Nagarkanda, Banga, Alfadanga, Charbadrashan
Sadar, Fulgazi, Sonagazi, Daganbhuiya, Chagalnaia
Sadar, Palasbari, Sundargonj,
Gobindagonj, Sadullapur, Saghata
Joydebpur, Sreepur, Kapasia,Kaliakoir, Tongi,
Kaligonj
Sadar, Muksedpur, Kasiani, Kotalipara, Tungipara
Sadar, Chunarughat, Madhabpur, Lakhai,
Nabigonj, Baniachang, Bahubal, Azmirigonj
Sadar, Sarisabari, Islampur, Melandha,
Madargonj, Bakshigonj
# of
Branch
20
# of
Member
32,359
# of
Thanas
9
3
20
30
2,941
33,018
49,882
3
5
10
11
17,845
6
28
63,347
12
32
49,649
8
11
25
19,816
45,889
7
45
90,953
19
17
27,304
96,251
4
48
5
12
13
17,132
8
56
124,722
24
21
36,295
13
21
36,630
8
15
29,348
33,836
5
20
29
67,037
6
6
12
19
15,944
23,608
5
8
14
20,955
6
28
Sl.
No.
23
Name of
District
Jessore
24
25
Jhalkathi
Jhinaidha
26
27
Joypurhat
Khagrachari
28
Khulna
29
Kishoregonj
30
Kurigram
31
Kustia
32
33
34
35
36
Lakshmipur
Lalmonirhat
Madaripur
Magura
Manikgonj
37
38
Meherpur
Moulvibazar
39
Munshigonj
40
Mymensingh
41
Naogaon
42
43
Narail
Narayangonj
44
Natore
45
Netrokona
46
Nilphamary
47
Noakhali
48
49
Norshingdi
Pabna
Name of Thana
Sadar, Monirampur, Keshabpur, Sarsa, Avoynagar,
Bagarpara, Jhikargacha, Chougacha
Sadar, Rajapur, Nalchity, Kathalia
Sadar, Soilkupa, Kaligonj, Moheshpur,
Horinakunda, Courtchandpur
Sadar, Panchbibi, Kalai, Akkelpur
Sadar, Ramgar, Manikchari, Panchari,
Dhiginala, Matiranga, Mohalchari
Sadar, Dawlatpur, Dumuria, Rupsa, Bhaitaghata,
Fultala, Khalispur, Khanjahanali, Terokhada,
Paikgacha, Koyra, Dakop, Dhigolia, Sonadanga
Sadar, Bhairab, Kuliarchar, Bajitpur, Katiadi, Tarail,
Hosenpur, Pakundia, Mithamoin, Karimgonj, Nikli,
Austagram, Itna
Sadar, Rajarhat, Ulipur, Nagessari, Fulbari, Chilmari,
Bhurungamari, Roumari, Char Rajibpur
Sadar, Kumarkhali, Khoksa, Mirpur,
Dawlatpur, Bheramara
Sadar, Raipur, Ramgonj, Ramgati
Sadar, Kaligonj, Hatibanda, Patgram
Sadar, Shibchar, Kalkini, Rajoir
Sadar, Mohammadpur,Sripur, Salikha
Sadar, Dawlatpur, Ghior, Saturia, Shibalaya,
Horirampur, Singair
Sadar, Gangni ,Mujib Nagar
Sadar, Kulaura, Sreemongal, Rajnagar,
Baralekha, Kamalgonj
Sadar, Tongibari, Srinagar,
Sirajdikhan, Gajaria, Lohajong
Sadar, Muktagacha, Gouripur, Trishal, Bhaluka,
Gafargaon, Haluaghat, Fulpur, Fulbaria, Dhobaura,
Ishwargonj, Nandail
Sadar, Patnitala, Niamatpur, Manda, Badalgachi,
Sapahar, Mohadebpur, Porsa, Damuirhat, Atrai,
Raninagar
Sadar, Kalia, Lohagora
Sadar, Sonargaon, Bandar, Araihajar,
Siddirgonj, Rupgonj, Fatulla
Sadar, Baraigram, Lalpur, Gurudaspur, Singra,
Begatipra
Sadar, Purbadhala, Kendua, Barhatta, Khaliajuri,
Madan, Atpara, Mohangonj, Kalmakanda, Durgapur
Sadar, Jaldhaka, Sayedpur, Domar, Kishoregonj,
Dimla
Sadar, Begumgonj, Senbagh, Hatia,
Chatkhil, Companigonj
Sadar, Raipura, Shibpur, Monohordi,Belabo, Palash
Sadar, Ishurdi, Sathia, Bera, Atgharia, Chatmohar,
Bhangura, Faridpur, Sujanagar, Ataikula, Enayetpur
S.
# of
Branch
34
# of
Member
61,399
# of
Thanas
8
8
17
13,617
29,582
4
6
6
7
12,375
10,837
4
7
28
49,813
14
30
49,657
13
13
20,776
9
20
40,968
6
14
8
10
11
21
27,349
15,213
12,541
21,182
37,855
4
4
4
4
7
6
21
9,370
34,046
3
6
21,154
10
40
62,682
6
12
25
54,138
11
8
29
13,334
73,751
3
7
20
42,255
6
27
36,562
10
11
20,002
6
27
52,955
6
24
30
49,082
63,579
6
11
29
Sl.
No.
50
51
Name of
District
Panchagar
Patuakhali
52
Pirojpur
53
54
Rajbari
Rajshahi
55
56
Rangamati
Rangpur
57
Satkhira
58
Shariatpur
59
60
Sherpur
Sirajgonj
61
Sunamgonj
62
Sylhet
63
Tangail
64
Thakurgaon
Name of Thana
Sadar, Bhoda, Debigonj, Atwari, Tetulia
Sadar, Galachipa, Mirjagonj, Baupal,
Kalapara, Dasmina, Dumki
Sadar, Swarupkati, Bandaria, Matbaria, Nazirpur,
Kaukhali, Zianagar
Sadar, Baliakandi, Pangsa, Goalanda
Paba, Mohanpur, Putia, Durgapur,
Charghat, Bagha, Baghmara, Motihar
Tanore, Boalia, Rajpara,Godagari,
Rangamati, Kaukhali, Kaptai, Rajashthali, Bagaichari
Sadar, Pirgacha, Gangachara, Pirgonj,
Kaunia, Mithapukur, Badargonj, Taragonj
Sadar, Kalaroa, Debhata, Tala, Shamnagor, Asasuni,
Kaligonj
Sadar, Naria, Damudda, Bedergonj, Goshairhat,
Jhazira
Sadar, Nakla, Nalitabari, Jhinaigati, Sribordi
Sadar, Raigonj, Ullapara, Sahjadpur, Kamarkand,
Belkichi, Kazipur, Chouhali, Tarash
Sadar, Chatak, Darampasa, Jamalgonj, Sallah,
Jagannatpur, Dhirai, Doarabazar, Bishwambarpur
Sadar, Fenchugonj, Surma, Balagonj, Jointapur,
Golapgonj, Khadimnagar,Companigonj, Bisshwnath,
Goainghat, Jakigonj, Kanaighat, Beanibazar
Sadar, Ghatail, Madhupur, Gopalpur, Mirjapur,
Basail, Kalihati, Nagarpur, Delduar, Bhuapur,
Dhanbari, Shakhipur
Sadar, Ranisankail, Pirgonj, Baliadangi, Horipur
TOTAL =
# of
Branch
8
27
# of
Member
14,856
45,253
# of
Thanas
5
7
13
18,667
7
15
36
24,637
90,558
4
12
7
25
9,690
45,196
5
8
18
33,258
7
13
14,744
6
9
19
16,631
29,445
5
9
15
21,790
9
25
35,739
13
28
44,320
12
15
1,288
26,200
2,341,819
5
490
30
MAP OF
BANGLADESH
Nation-wide Coverage of ASA
(As of December 31, 2003)
31
(15)
(34)
ss(8)
(9)
SUNAMGANJ
JESSORE
INDIA
ANNUAL REPORT
ASA
2003
A S A
1/2 Asad Avenue Rd. Mohammadpur, Dhaka-1207
Telephone: 88-02-9116375, 8110934-5
Fax: 88-02-8111175, E-mail: asa@bd.drik.net
Visit ASA on the web at: www.asabd.org
32