tag:blogger.com,1999:blog-7182576430045656062.post143491476235597431..comments2024-02-25T13:47:07.003+05:30Comments on Candid Unheard Voice of Indian Microfinance: A Day In The Life of An MFI Loan Officer: Some Insights From The Adapted Grameen Replicators in India…Ramesh S Arunachalamhttp://www.blogger.com/profile/09264606020720529040noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7182576430045656062.post-60837885466797685812011-02-13T20:10:33.653+05:302011-02-13T20:10:33.653+05:30Dear Ramesh
I agree with your analysis in taking ...Dear Ramesh<br />I agree with your analysis in taking the cause of the so called loan officers of MFIs and about their pathetic working conditions. This added to the poor audit system in place with the MFIs are some of the reasons for most of the wrong doings of these officers over time. As child labour is banned, a number of countries when they import products from countries like India get an undertaking from the exporters to the effect that the latter conformed to international best practices. Similarly, the funders of MFIs should demand such best practices from the MFIs in India and aborad. But, unfortunately, there is no common code for working conditions for labour in the MF sector.S Santhanamnoreply@blogger.comtag:blogger.com,1999:blog-7182576430045656062.post-45786466694129114332011-01-29T23:15:52.082+05:302011-01-29T23:15:52.082+05:30Dear Ramesh,
Your post clearly bringout the t...Dear Ramesh,<br /><br /><br /> Your post clearly bringout the truth of over work load to loan officer based on mfi outreach goal.<br /><br />so, naturally used second hand is broker and agent mode, which is inevitable.<br />finally mfis must learn when they use public money for public cause,Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7182576430045656062.post-16395001053651610882011-01-29T18:15:03.843+05:302011-01-29T18:15:03.843+05:30Quite interesting analysis!
This leads to an impo...Quite interesting analysis!<br /><br />This leads to an important question, when the PE investors were carrying out due diligence and looked at the projections (I presume that projection, apart from other valuation tools/methods used, is an important source to decide the value of an MFI and the stake to be taken up by the investor), why didn't they raise the issues on the case load?<br /><br />The case load is an important issue in the periodic reporting to the institutional lenders, but then, perhaps, PE investors were quite content with their return on investment!<br /><br />As part of the equity stake holders in these MFIs, is anyone questioning their role?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7182576430045656062.post-60007371519426057702011-01-29T12:32:20.550+05:302011-01-29T12:32:20.550+05:30Dear Vasu
Sure and thanks for this perspective
...Dear Vasu <br /><br />Sure and thanks for this perspective <br /><br />As always, appreciate your comments and look forward to meeting you all and spending a day with you<br /><br />Thanks<br /><br />Warm Regards<br /><br />RameshRamesh S Arunachalamhttps://www.blogger.com/profile/09264606020720529040noreply@blogger.comtag:blogger.com,1999:blog-7182576430045656062.post-7949493082741484332011-01-29T12:14:50.084+05:302011-01-29T12:14:50.084+05:30hi Ramesh, this is vasu from Equitas. as usual yo...hi Ramesh, this is vasu from Equitas. as usual your post has interesting analysis and discussions. however when you try to talk of a bunch of companies, naturally u tend to average out the various findings and issues and take the middle path applicable on an average to the companies concerned. even though u have not mentioned the names of the MFIs, i suspect the 6th MFI which is said to have commenced operationos in 2008 is probably equitas. <br /><br />our model is completely different from the one described above. also you mention about low use of technology etc. we probably have the best of technology deploymnet in the MFI sector around the world and backed by very innovative processes. a simple philosophy for example, that we use, is, at the branches, the branch staff would do only those processes which have a member at the other end of it. every process which has no member involved in it, would be either outsourced or centralised. this frees up the time of branch staff to focus only on client facing activities relieving them from other mundane actions like data entry, filing, bank recon etc. <br /><br />also our controls are probably the best in the sector. this has ensured that the number of staff related issues are extremely small in the MFI sector. also our client friendly recovery practices are again very likely to be the industry best.<br /><br />it would be good if you could visit our operations and spend atleast a day with us and it would also help if you could highlight good practices adopted by us as well as other MFIs so that the rest of us can learn from the same for improvement in our companies<br />regards/vasuvasudevan pnhttp://www.equitas.innoreply@blogger.com