Introduction to ASA
ASA was established as an NGO in 1978 and started microcredit since 1991. The most popular service provider dedicated to poverty alleviation.
ASA is working in 64 districts through 3,303 branches covering more than 7 million poor households with 25,719 regular staff.
Vision
ASA seeks to promote social and economic development of the country and has made a significant improvement for the well being of the poor.
Mission
Our institutional mission is to support and strengthen the low income sector of the economy by facilitating, dispersing and expanding savings, credit and insurance to those who lack access.
Objectives
- To serve larger numbers of poor.
- To maintain institutional self sufficiency.
- To alleviate poverty and improve the quality of life of poor people by offering microfinance services.
|
Organizational Profile as of December 2008
|
|
Number of Members
|
7,276,677
|
|
Number of borrowers
|
5,877,440
|
|
Average loan size (Total)
|
$ 132 |
|
Percentage women clients
|
71% |
|
Financial Profile (USD in Million)
|
|
Year |
2007
|
2008
|
|
Portfolio size |
$360 |
$468 |
|
YOY Growth |
31% |
30% |
|
Savings |
$130 |
$166 |
|
YOY Growth |
21% |
28% |
|
Avg. Portfolio Yield |
26.15% |
24.32% |
|
Operating Cost |
10.48% |
12.10% |
|
Avg. Cost of Funds |
7% |
7% |
|
Net Income |
$43 |
$31 |
|
Key Financial Performance Indicators
|
|
Description |
2007
|
2008
|
|
FSS
|
128% |
100% |
|
ROA
|
5.63 |
7.32% |
|
ROE
|
9.10% |
12.18% |
|
Leverage Ratio
|
62% |
58% |
|
PAR ≥ 30 days
|
4.34% |
6.10% |
|
Write-off Ratio
|
0.28% |
0.52% |
|
LO case load
|
412 |
482 |
ASA’s Innovation in Microcredit
- Flexibility of group formation/No bindings on group guarantee
- Simplicity and transparent system
- Exponential growth
- Low-costs management
- Standardization
- Delegation of authority in the field level
- Flexible loan products
- Allow clients to withdraw savings
- Insurance
- Social service from loan income
- Innovative staff recruitment and on-the-job (each one-teach one) training
- Simple and shorter loan processing, less waiting time for the borrower
- Written manual
- Strong monitoring and supervision
- Standard and low cost structure on furniture, fixture and overall management costs
- Donors free sustainable growth, high ROA and ROE
International Recognition and Awards
- 2008 “Banking at the Bottom of the Pyramid” Award by Financial Times and International Finance Corporation (IFC) UK
- Selected as the best MFI worldwide by Forbes (Dec 2007)
- “The Ford Motor Model of Microfinance” Asian Development Bank
- Best International Technical Service Provider for UNDP MicroStart Program in the Philippines and Nigeria
- Placed in all the six categories with exceptional best result: MIX Report 2005
- Empowerment of Women Award
ASA branches reach in break-even very shortly
Example of one branch income and expenditure (Calculation made in TAKA)
Details calculation on loan disbursement, collection, income and expenditure
|
Month |
Fund Outflow |
Interest Income |
Break even
month |
|
Loan disbursement |
Cumu: |
Management |
|
Small |
Monthly |
cumu: |
|
Per |
Amount |
Amount |
Amount |
Amount |
Monthly |
Cumu: |
Month - 01
Month - 02
Month - 03
Month - 04
Month - 05
Month - 06
Month - 07
Month - 08
Month - 09
Month - 10
Month - 11
Month - 12 |
100
250
325
325
325
325
300
0
0
0
0
0 |
1,100,000
2,750,000
3,575,000
3,575,000
3,575,000
3,575,000
3,300,000
0
0
0
0
0 |
1,237,500
4,331,250
8,353,125
12,375,000
16,396,875
20,418,750
24,131,250
24,131,250
24,131,250
24,131,250
24,131,250
24,131,250 |
161,000
102,500
110,750
110,750
110,750
110,750
108,000
75,000
75,000
75,000
75,000
75,000 |
161,000
263,500
374,250
485,000
595,750
706,500
814,500
889,500
964,500
1,039,500
1,114,500
1,189,500 |
6,111
42,778
82,500
122,222
161,944
201,667
238,333
238,333
238,333
238,333
238,333
238,333 |
6,111
48,889
131,389
253,611
415,556
617,222
855,556
1,093,889
1,332,222
1,570,556
1,808,889
2,047,222 |
-154,889
-214,611
-242,861
-231,389
-180,194
-89,278
41,056
204,389
367,722
531,056
694,389
857,722 |
|
Total: |
1,950 |
21,450,000 |
24,131,250 |
1,189,500 |
1,189,500 |
2,047,222 |
2,047,222 |
1,583,111 |
Note:
1) # of Loan Officer 4
2) # of clients:
Small 1,800
S/Business 100
SEL 50
3) 1st cycle of loan amount:
Small 8,000
S/Business 25,000
SEL 80,000
4) Rate of Interest (flat): 12.5%
5) Loan loss provision @ 1% on disbursement included in management cost
6) Tk. 75,000 charged in 1st month for office equipment, computer and furniture & fixture
|
|
Management cost: (Example of one month) |
Personnel: |
a) BM Salary 14,000
b) LO Salary 39,000
c) ABM Salary 8,000
d) Peon Salary 4,000
|
65,000 |
Office Management:
|
a) Office rent 4,000
b) Electricity, Gas, & Wasa 800
c) Stationery 200
d) Conveyance/Fuel 1,500
e) Postage 100
f) Others 3,400
|
10,000
|
75,000 |
Remarks:
Above mentioned calculation clearly shows that a branch can reach break-even within a 7 (seven) month from date of starting.
Implementation Strategies
- Experienced staffs of ASA are deputed to the operating countries to train local staff and design policies and procedures. They also take part as well as supervise day to day activities of the respective organization.
- Local staffs are generally promoted to senior posts so that they can run the program independently.
- At present 66 ASA staffs are working in different operating countries to implement the ASA Microfinance Model considering local practices of the respective country.
- ASAI has introduced automation in all the operating countries. The whole program will be supported by specialized software made by ASA.
- Operational Headquarters, based in Bangladesh, provides full operational support.
- Europe Office, based in the Netherlands, provides funding and legal support.
- Product and methodology have been designed according to respective countries' circumstances and culture.
- More than 95% staffs are locally recruited.
|
|
