KBS Local Area Bank (the financial inclusion lab) Welcomes You Oct - - PowerPoint PPT Presentation

KBS Local Area Bank

(the financial inclusion lab)

Welcomes You

Oct 20, 2011

BASIX Group Corporate Structure

BASICS Ltd

Financial Services Knowledge Services Bhartiya Samruddhi Finance Ltd. (BSFL) Krishna Bhima Samruddhi Local Area Bank (KBSLAB) Indian Grameen Services (IGS) BASIX Consulting ( BASIX Academy) The Livelihood School CTRAN Consulting P. Ltd. B‐ABLE BASIX Krishi Sub ‐ K

KBS Genetics

– A special category of Banks ‐ LAB – Commenced operation in Feb, 2001 – Operating area restricted to 4 districts – Can raise resources from outside, but can deploy only within – By Choice, adopted Microfinance as business model – The only bank of its kind – A BASIX Group Entity

Mission

“..to be a sustainable local community based institution providing financial services to the underserved, particularly rural poor and women and to arrange provision of technical assistance and support services to the borrowers with the ultimate goal of promoting a large number of sustainable livelihoods in the area”.

Vision 2014

‘…By 2014, to be the preferred micro finance bank,

promoting livelihoods of 0.5 million underserved customers particularly poor and women, with a deposit base of 300 crores, assuring a healthy return to stake holders …’

Coverage

Current Channel

Head Office Mahabubnagar

5 5 8 Raichur Mahabubnagar Gulbarga 4 4 12 4 5 12 Yadgir 1 5 8

Districts – 4 Branches – 14 BC Hubs – 19 BC Spokes ‐ 40

20 18 21

Total ‐ 73

14

Business Correspondent

– Extended ‘out‐reach’ through BC – Adopted a ‘Hub n Spoke’ model (19+40) – Integrated the BC in to the bank as much regulation allowed – To reach more customers in remote location ( Financial Inclusion)

CEO/MD

MANCOMM COO, Head Finance and treasury, Head Credit, Head Savings and Business Development, and Head Risk based Internal Audit Secretary ‐ Head Compliance & Risk (Non‐Credit) Chief Operating Officer MN Askari

Branch & BC Operations AM‐ ITC Naveen & Srini AM HR and Admin Anuradha

Head – Credit Hariprasad N

Manager Credit R Desai

AM Credit Supervision Vandana

AM GME Siraj & Tompe

AM Credit Appraisal, Insurance & Pension Narendra

AM Ag/BDS Vignesh

Head ‐ Finance and Treasury CR Sankar

AM Accounts Vishnu Treasury To Appoint

• Ex. MIS

Satish

Head – Compliance & Risk (non‐credit) Parameswara Rao

Corporate Affairs Patnaik Compliance and Risk Supervision

Head – Risk based Internal Audit Chandrakant K

AM Internal Audit Rashid & Vishal

Head – Savings & Business Development Anand Solanki

AM BDS ‐ Vignesh, Raghu & Ravi Brand Building and BASIX cell ‐ Imtiaz Special Projects To Appoint

Head – BC Madhusudhan

AM –GLB Joshi

HR Commitee ALM Committee HOLC I‐II Risk Commitee Credit Commitee Customer Service Commitee

Structure at Head Office

Structure at Branch

Branch Manager BDX 1 BDX2 BDX 3

• Asst. Branch

Manager Office in Charge + Banking Assistant Customer Service Representative (CSR) Livelihood Service Provider (LSP) Micro Saving Assistant (MSA)

Structure at BC Hub

Transaction assistant Custom er Service Provider ( CSP) Livelihood Service Provider ( LSP) Microsaving Service Provider ( MSP)

Bank BDX

Service spectrum

– Savings – Credit – Insurance‐ life, health and enterprise – Agri Business Development Services – Business & institutional Development services

Financial Highlights

Deposits

27.38 43.42 55.55 74.57 92.51 61.1 135.2 185.5 248.5 271.2 ‐ 50.0 100.0 150.0 200.0 250.0 300.0 ‐ 20.00 40.00 60.00 80.00 100.00 06‐07 07‐08 08‐09 09‐10 10‐11 Deposit Outstanding Deposit Accounts

Amount in Crores / Accounts in ‘000’

Advances

30.21 52.10 63.75 78.11 88.32 32.5 45.2 55.1 61.5 67.0 ‐ 20.0 40.0 60.0 80.0 ‐ 20.00 40.00 60.00 80.00 100.00 06‐07 07‐08 08‐09 09‐10 10‐11 Credit Outstanding Credit Accounts

Amount in Crore / Accounts in ‘000’

Customer base

56.8 89.4 102.8 131.8 163.6 ‐ 50.0 100.0 150.0 200.0 06‐07 07‐08 08‐09 09‐10 10‐11 Numbers in 000

CD Ratio

110.33 119.99 114.77 104.75 95.47 ‐ 50.00 100.00 150.00 200.00 06‐07 07‐08 08‐09 09‐10 10‐11 Numbers in %

PBT & PAT

0.52 0.78 1.47 1.82 2.96 0.30 0.46 0.88 1.19 1.78 ‐ 0.50 1.00 1.50 2.00 2.50 3.00 3.50 06‐07 07‐08 08‐09 09‐10 10‐11 PBT PAT Amount in Crore

Return on Equity

5.27 6.09 8.69 10.04 12.62 ‐ 4.00 8.00 12.00 16.00 06‐07 07‐08 08‐09 09‐10 10‐11

Return on Assets

0.86 0.76 0.98 1.14 1.37 ‐ 0.40 0.80 1.20 1.60 06‐07 07‐08 08‐09 09‐10 10‐11

Financial Highlights – September 2011

Key Financial Indicators – September 2011

Milestones

• Reversal of CD Ratio

– Cultural shift – deposit driven – New Business lines – GME and Liabilities

• Technology

– GPRS POSs – CBS – futuristic hardware configuration

• Brand Building

– Audio/Visual Van Campaigning – Sponsoring local events/fairs. – Advertisement on public transport –Buses and Auto. – Welcome boards in branch towns and – village direction boards for 33 BTD villages

Projections 2014

Challenges

• Capitalization
• Environment – AP crisis ‐ Potential Fallout
• Financial Literacy both among staff and customers
• Diversification of Business Portfolio – too concentrated
• Expansion

The effort continues… The effort continues…