Krishna Bhima Samruddhi Local Area Bank Limited

Mission:

The mission of KBSLAB is to be a sustainable local community based institution, providing financial services to the under-served, particularly rural poor and women and to catalyze the provision of technical assistance and support services to the borrowers with the ultimate goal of promoting a ... Read more

Background and Main Challenges:

Krishna Bhima Samruddhi Local Area Bank Ltd (KBS LAB) is the first micro-finance bank in the country. KBSLAB was incorporated under companies Act 1956 in the year 1999, was granted license to carry out banking business under the Banking Regulation Act, 1949. The Bank operates in Mehaboobnagar ... Read more

Address:

H.O.# 7-5-108/B/1, 1st Floor, Venkateshwara Colony

Mahabubnagar

Andhra Pradesh

509 002

India

Phone:

+91 8542 273 383/4

Fax:

+91 8542 271 043

Email:

mbn_kbslab [at] sancharnet [dot] in

Website:

www.kbsbankindia.com

Main Funding Sources:

Loans

Savings

Shareholder Capital

Products and Services:

Loans

Voluntary Savings

Insurance

Fund Transfer Services

Looking for (Investment Types):

Equity

Loans in Local Currency

% Operations Comprised by MF:

91 - 100

Date established:

Feb 19 1999

FYE:

31-Mar

Current Legal Status:

Rural Bank

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Women	1
Clients living in rural areas	2
Clients living in urban areas	3
+ Development goals (ranked by importance)
Growth of existing businesses	1
Gender equality and women's empowerment	2
Poverty reduction	3
Increased access to financial services	4
Employment generation	5
Development of start-up enterprises	6
Housing	7
Agriculture & Allied Services.	8
+ Poverty targets
Low income clients
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
SME loans
Loans for agriculture
Loans for education
Housing loans
+ Savings products offered
Voluntary savings accounts
Fixed term deposits
Special purpose savings accounts
Daily Deposits and Weekly Deposits.
+ Compulsory insurance products required
Compulsory credit life insurance
+ Voluntary insurance products offered
Voluntary credit life insurance
Voluntary life insurance
Voluntary health insurance
Enterprise Insurance
+ Other financial products and services offered
Savings facilitation services
+ Non-financial services offered
+ Enterprise services offered
Business development services
+ Education services offered
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:	Introduced the products like Samruddhi Daily Deposits, Samruddhi Weekly Deposits in cultivate the saving habit in the poor and low income people Micro lending to small lenders, small entrepreneurs to improve the business
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Declining balance interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Outreach to remote/rural communities
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use

MFI Report

Krishna Bhima Samruddhi Local Area Bank Limited

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Social Performance Profile

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