Sks Microfinance Loan Application: Fill & Download for Free

I think I should answer this question because I have been researching on Bandhan Bank for quite some time now.Bandhan Bank is the newest Organization to enter the Banking Industry after receiving a Banking License from RBI on 17th June 2015. In this post, I will tell you about how it was formed and how it scaled up to become a bank.Chandra Sekhar Ghosh, the entrepreneur who is the founder of Bandhan, has more than 15 years of experience working with the rural farmers and traders at ground level. He worked with BRAC for 13 years and then with Village Welfare Society for 2 years as Head of Operations where his salary was Rs 5000 / month.He quit Village Welfare Society and with all the experience, formed Bandhan Konnagar NGO in 2002 at Konnagar near Kolkata. The objective of this NGO was to provide micro-loans to small vegetable vendors, shopkeepers and traders. He roped in his friends from previous organizations to start this NGO and invested his life savings of Rs 2 lakhs in this startup.Bandhan Konnagar first collected Rs 5 as deposit per day for 40 days from its customers (called as members) and then it offered them micro-loans of Rs 1000 to be paid back in equal weekly instalments. In its 1st year, Bandhan had 2 branches and it provided micro-credit to 512 borrowers. Its loan book was only Rs 3 lakhs.In the 2nd year of its journey, ie, in 2003, SIDBI became the first organization to lend money to Bandhan. However, no new branches were opened as the founder and his team were forming a system which would later be duplicated in all new branches.They started forming groups among its members (Borrowers). Almost all members were women. Every group would consist of a few members and they would meet regularly at a meeting place and pay their instalments.This type of group formation would ensure that everyone paid their instalments and no one defaulted as it would ruin their reputation among peers.The 2 branches increased the loan book to Rs 21 lakhs and the number of borrowers to 1440. Now, with a proper business system in place and the success of its two initial branches, Bandhan opened new branches in 2004, all in West Bengal.By end of 2004, Bandhan had 10 branches, 5700 borrowers and Rs 1.2 crore loan book. Soon, ASA also started lending money to Bandhan along with SIDBI. By 2006, Bandhan had 155 branches, 1.49 lakh borrowers and Rs 37 crore loan book.According to RBI guidelines, 40 % of all bank loans have to be given to the Agricultural sector and Small Industries. These loans are called priority loans.As Bandhan NGO was in the business of giving loans within this sector and it was growing at an unbelievable pace in West Bengal, banks like HDFC, ICICI, UBI, ABN Amro and UTI (now Axis) started lending to Bandhan as this would be counted as priority loans.As Bandhan had no shortage of funds and after its success in West Bengal, it started charting out plans to expand to other states as well. As a smart entrepreneur, Ghosh hired a consultancy firm called MicroSave for assistance in the expansion.First, it opened new branches in North Eastern states, then in the Eastern States and finally it entered Delhi & Maharashtra in 2008. By 2011, Bandhan had 1553 branches, 8800 employees, 32 lakhs borrowers and a loan book of Rs 2000 crores!!As Bandhan had become a very big organization, it had to let go of its NGO status for further scaling up of operations. Thus it acquired a Kolkata based NBFC called as Ganga Niryat Pvt Ltd and renamed it 'Bandhan Financial Services Pvt Ltd'.It transferred its entire MFI (Micro Finance Institution) portfolio to this NBFC and Bandhan Konnagar NGO became its CSR arm that conducted training.During expansion, like every company, Bandhan also faced a lot of problems. Example: In an unfortunate scenario, the Andhra Pradesh Government banned all microfinance activities in the state as there was an increasing no of farmer suicide cases.The microfinance industry came to a standstill. Big players such as BSFL and SKS microfinance were hit hard. However, Bandhan was not present in Andhra Pradesh and it was not affected in any way.Still, the flow of funds had started slowing down but later it became normal in the coming years.Another problem was that some people thought of Bandhan as a chit fund but later they realized that Bandhan was an organization which was giving loans to the needy.Chandra Sekhar Ghosh knew that these type of problems would arise and thus he always focused on training of employees and members. When Bandhan was a small startup, then also Sundays were fixed for training purpose.As it started growing, Bandhan used to book auditoriums for training and sometimes group picnic that too for training purpose. Now Bandhan has its own training centres in all zones of the country.In 2010, Finance Minister Pranab Mukherjee announced that new banking licenses would be given. The eligibility for application was10 years of track record in the Finance Sector.Should never have been under the scanner of any regulator.The capital of at least Rs 500 crores. (Bandhan had Rs 3000 crore capital at that time)26 applications were submitted. The names included some big guns such as Aditya Birla Nuvo, Reliance Capital, LIC Housing Finance, L&T housing finance, Janlakshmi Finance, India Post, Tata capital etc.However, on 2nd April 2014, RBI announced the final two names who will be given banking license: IDBI and Bandhan.Bandhan had an outstanding track record in the microfinance industry as it had less than 2% bad loans (NPAs), unlike its competitors. This was because of the system each branch followed of inculcating values among its borrowers, training of employees and keeping a strict tab of loan disbursal.For becoming a Bank, Bandhan had to set up a proper IT system in place. For that, it hired FIS IT services.Finally, it was given the Banking License on 17th June 2015.How was Bandhan different from its peers in the microfinance Industry?Bandhan and its founder always had focused on microfinance business and never diverted their attention to any other business activity. Its founder Chandra Sekhar Ghosh, was never media hungry and his only focus was on taking Bandhan to new heights.On the other hand, his peers in the MFI industry were all celebrity promoters and today they are nowhere to be seen as they lost focus of the track.After achieving initial success, it quickly expanded to other states and was never concentrated in a single state. Even if it was present in Andhra Pradesh at that time, it would not have been much of a problem after the Ban on microfinance activities in the state. Its peers such as BSFL and SKS Microfinance were hit hard on their faces and BSFL closed down very soon.Bandhan raised capital only from those organizations whose focus was rural development. Thus investors in Bandhan could align themselves with the mission of Bandhan.It focused on improving the business system such as the formation of member groups and inculcating values among them. It focused on training.Source of Research: Wikipedia/ Book called BANDHAN by Tamal Bandyopadhyay/ Newspaper Articles.

Most of the NBFC Microfinance institutions provide internships to students (bachelor, masters and doctorate).Some of them invite applications on their websites.1. Bandhan is the largest Microfinance organization in terms of total loan portfolio. It has received a banking licence and in the process of converting into one. (Bandhan::Internship)2. Satin creditcare is one of the fastest growing MFIs working primarily in North India. (Satin | Creditcare)3. Spandana is one of the dominant players of the industry. (Spandana Sphoorty Financial Limited)4. NABARD Financial Services is a NABARD-floated subsidiary functioning primarily in South India and Maharashtra. (Page on nabfins.org5. Ujjivan Microfinance is a well known industry face working in 24 states and 3 UTs. (Ujjivan)While some of them prefer to visit campuses to hire interns or don't mention explicitly regarding internships1. SKS Microfinance is a well known MFI and holds the distinction of being the only publically listed MFI. (Choose Your Community: Prospective Employees)2. Janalaxmi Microfinance is a famous MFI working mainly in South India. (Openings - Janalakshmi)The MFIs usually hire interns for their:a) short term research studies (market research, customer behavior, new product development, pilot testing, competitive assessment)b) desk research (basic research, data mining, and assessment e.g Assessing the Microfinance industry dynamics in Bangladesh)c) process assessment (studying organization, reporting and documentation and other dynamics)These broadly cover the tasks that you may be given as an intern at an NBFC-MFI. The internship usually spans across 6 to 8 weeks and ends with a detailed assessment report with your findings and recommendations and in most cases with a presentation to the senior management.I hope it helps. Best regards.

The initial public offering (IPO) of Hyderabad-based microlender Spandana Sphoorty Financial Ltd got off to a slow start on Monday, in part owing to the volatility in the stock market.Spandana’s public offering of 9.82 million shares, excluding the anchor allotment, received bids for 5.71 lakh shares. That amounts to a subscription of 5.8% at the end of day one, stock-exchange data showed.The portion set aside for qualified institutional buyers saw nearly 19% subscription while the quota reserved for retail investors and non-institutional investors, such as corporate houses and affluent individuals, saw muted response.High net-worth individuals (HNIs) typically invest in very large quantities on the final day of the issue to save on the interest cost. HNIs borrow short-term capital from various avenues, barring banks, to fund their IPO applications in what is known as IPO financing. These investors deploy a small fraction of their own capital—which is called margin money—upfront. Additional capital raised through short-tenure loans help HNIs or wealthy investors place large bids in an IPO.On the grey market, shares of Spandana’s shares were quoting at a premium of Rs 5-7 over its price band of Rs 853-856 apiece. Last week, Spandana shares quoted a premium of Rs 10-15 over its price band. The grey market is a pseudo, over-the-counter market where IPO shares are traded before the official listing on a stock exchange.Indian stock markets fell sharply but ended off lows while the rupee suffered its biggest one-day fall in six years against the US dollar, amid a global selloff in risk assets. At day's lows, the Sensex fell more than 700 points to 36,416 while the Nifty tumbled below 10,800, before ending off lows.Spandana attracted prominent domestic and foreign investors, including a private equity firm and a hedge fund, as anchor investors last Friday. It raised Rs 360.28 crore ($51.7 million) by allotting nearly 4.21 million shares to 18 anchor investors at the upper end of its price band.Spandana Sphoorty is seeking a valuation of Rs 5,504.64 crore ($791 million) from the IPO.The IPO is a combination of a fresh sale of shares worth Rs 400 crore and an offer for sale worth Rs 800 crore by the microlender’s institutional backers. The IPO will see a stake dilution of 21% on a post-issue basis. That's lower the 27.71% stake dilution anticipated at the time the company filed for its IPO.Spandana counts homegrown private equity firm Kedaara Capital, venture capital firm Helion Venture Partners and strategic investor Valiant Mauritius Partners FDI Ltd as its backers.Kedaara and other investors were previously hoping to raise an estimated Rs 1,125 crore by selling 13.15 million shares. Instead, they are now selling a total of 9.35 million shares.VCCircle had first reported in March last year that Spandana had appointed merchant bankers for a planned IPO later in the year. However, India’s primary market activity came to a standstill due to the trade war between the US and China and a liquidity crisis after IL&FS Ltd defaulted on its debt, causing redemption pressure at other non-banking financial companies.Axis Capital, ICICI Securities, IIFL Holdings, JM Financial, IndusInd Bank, and Yes Securities are the merchant bankers managing the IPO.Spandana will become the latest microlender to go public after a bunch of its peers listed their shares on the stock exchanges in recent years.Bharat Financial Inclusion Ltd -- formerly SKS Microfinance Ltd -- was the first Indian microfinance institution to float an IPO, in 2010. Microlenders-turned-small finance banks Equitas Holdings Ltd and Ujjivan Financial Services Ltd went public in 2016.Microlender-turned-commercial lender Bandhan Bank and Bengaluru-based CreditAccess Grameen Ltd floated their IPOs last year. Kolkata-headquartered Arohan Financial Services Pvt. Ltd appears to have postponed plans after receiving debt capital from the World Bank’s private-sector investment arm International Finance Corporation.Thanks/Regards,Sandeep Reddy.