Micro finance business estimation in Bihar for Spandana

1. LAUNCHING
BIHAR
By
Manoj Kumar

2. Sociao-Economic Profile
Socio-economic
Profile
Bihar
India
83 million
1029 million
Poverty ratio
42.56%
26%
Overall literacy rate
47.50%
65.20%
SC population
15.70%
16.20%
ST population
0.90%
8.20%
Avg. land holding
0.75 ha
1.57 ha
Human development
index
0.367
0.472
Infrastructure
development index
91.31
100
Population

3. Banking profile
Banking Network in
Bihar*
Bihar
India
Total number of bank
branches (Including
RRBsand Co-operative
Banks)
3735
73,836
Bank branch per ‘000
population
0.04
0.07
Credit Deposit ratio
33.48 %
74.2 %

4. Micro Finance Penetration index
State
MPI
MPPI
Andhra Pradesh
3.03
5.27
Karnataka
2.15
2.27
Tamil Nadu
2.18
2.66
Kerala
1.29
2.36
Bihar
0.3
0.2
Haryana
0.13
0.26
Punjab
0.08
0.27

5. MFI Outreach in Bihar-1
Name of the
organization
Year of
Legal Status
start of
operations
Total no. of
Districts
No. of
branches
Number of
clients
Cashphor
(Bihar)
1997
NBFC
8
70
1,40,000
ASSEFA
(Bihar)
2005
NBFC
6
22
62,340
SKS (Bihar)
2005
NBFC
37
110
190,000
Bandhan
2007
NBFC/Socie
ty
8
40
72,000
SHARE/Asmi
tha
2008
NBFC
5
35
50,000
ASSEFA
(Bihar)
2005
NBFC
3
20
60,000
NIDAN
1996
SOCIETY
6
NA
25,000
Gramin Jan
Kalyan
Parishad
2005
SOCIETY
2
NA
18,602

6. MFI Outreach in Bihar -2
Name of the
organization
Status
Total no. of
Districts
Jan Jagaran Evam
Punarwas Sansthan
2003
SOCIETY
2
2
5,000
Trust Microfin
Services
1999
TRUST
2
3
5,000
Nav Jagriti
2002
SOCIETY
2
2
3500
Mass care
International
2003
SOCIETY
5
NA
2500
CDOT
2007
SOCIETY
1
4
3250
Batika
2007
SOCIETY
2
2
1800
Boarddev
1999
SOCIETY
2
NA
800
Bihar Development
Trust
2007
TRUST
2
2
1500
Total
(Estimated)
Legal
No. of
branches
Number of
clients
Year of start of
operations
6,41,292

7. Potential MF clients in Bihar
Estimate of No. of Poor Household in Bihar (2008)
Population of Bihar
92.90 Million
(Estimated as per census data’08)
Total No. of Households
16.9 Million
(Assumption= 5.5 persons per HH as national average as per CSO 200405 report )
No. of Rural Households
15.12 Million
( As per CSO 2004-05 report, Rural are 89.54% of total population)
No. of Urban Households
1.76 Million
(As per CSO 2004-05 report,urban are 10.46 % of total population)
No. of Rural BPL
6.37 Million
(42.1% of rural population is below poverty line,CSO 2004-05)
No. of Urban BPL
6,10,000
(34.6 % of urban population is below poverty line,CSO 2004-05)
Total No of BPL Households
Potential MF clients
(assuming one member per HH)
6.97 Million
6.97 million

8. Demand –Supply dynamics & opportunities for
SPANDANA in Bihar
Estimated potential clients
7 million
Discounted potential clients at hurdle rate 40%
4.2 million
Clients serviced by other MFIs as on today
0.65 million
Unserviced potential clients
3.55 million
Potential clients for multiple lending
.13 million
Total potential clients for SPANDANA as on today
3.68 million
Total Demand for credits
2944 crorers
(assumed that 20% of serviced clients can afford multiple lending)
(assuming ticket size of 8,000 )