BISWA Microfinance reports Rs.1.1 million net profit since April

By Naagesh Naaraayana
Microfinance Focus, Nov.18, 2009: Kolkata-registered BISWA Microfinance Private Limited (BMPL) has reported a net profit of Rs.11,21,525 ($24,323) for the period of April-Oct. 2009 with a rate of return on investment at 7.69%, said a statement from the company.
Bharat Integrated Social Welfare Agency (BISWA) is a leading microfinance institution in Orissa, with a beneficiary base of over 5,00,000.
Kaushik Gupta, Programme Manager, Social Initiative Group of Electrosteel Castings Limited, informed Microfinance Focus that the MFI disbursed Rs. 4.06 million ($88,050) in the month of October with an average loan size of Rs. 5,000 per client.
Its cumulative loan disbursement is Rs. 40.02 million and the loan outstanding as of Oct. 31 is Rs.22.39 million.
The microfinance company has also provided insurance to 6,704 clients during the period of April-October.
Biswa Microfinance is currently active in Orissa, and Jharkhand with 9 branches and 1,183 self-help groups are ready for finance. With 62 new loans offered in October, BISWA Microfinance Private Limited has 570 active SHG loan accounts. The MFI charges 20% diminishing rate of interest, one among the lower side in the region.
Its promoter K.C. Malick and the Electrosteel Group, Kolkata, promoted it as a microfinance service provider, BMPL, in 2008 aiming at enhancing the livelihood of the vulnerable communities integrating microfinance opportunity with market-led business solutions, the statement said.
As an arrangement between K.C. Malick and Electrosteel, a major stake holder in the NBFC, it has been agreed to transfer A+ grade group of BISWA microfinance portfolio in BMPL within a period of 3 years from the date of agreement in addition to promotion of new groups in states other than Orissa.
Recently, it raised about Rs 10 crore ($2 million) from SNS Water Fund, an initiative by the Dutch-based SNS Group, to provide water credits for installation of individual household toilets and drinking water in Orissa.

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