Bandhan creates a flutter in microfinance space
Five years ago, when Chandra Shekhar Ghosh set up Bandhan, all he was trying to do was fight poverty with microloans.
By Saswati Chakravarty, TNN |
BANGALORE: He did not quite set out to take on the world. Five years ago, when Chandra Shekhar Ghosh set up Bandhan, all he was trying to do was fight poverty with microloans . Today, when Bandhan sits 15 notches above Grameen Bank founded by Nobel laureate Mohammed Yunus on an international list, Ghosh simply says: “It means my model works.”
If Bandhan does not occupy your mindspace, blame it on simplicity. That is the cornerstone of Ghosh’s philosophy for whom staying “simple, transparent and focused” is more important than dreaming big.
Ghosh and his Bandhan — a fledgling MFI that operates as a society in some of the country’s most poverty-stricken pockets upstaged several domestic and international stalwarts to make it to the second position on Forbes magazine’s first-ever listing of the World’s Top 50 Microfinance Institutions. Bandhan was among the seven Indian MFIs that made the cut, the largest from any country. Bangladesh had an equal number.
In fact, the Forbes list comes as a shot in the arm for the microfinance movement in India with several players finding mention. As Vinutha Reddy, founder of Grameen Koota, says: “If India has to reach its millennium goals, microfinance needs to play a very crucial role in it. With this list, we have now got increased visibility.”
Ms Reddy’s Grameen Koota, an MFI based on the Grameen Bank model, has been ranked 19 while Vikram Akula’s SKS, another Grameen replicator, is at 44th position. The others are Microcredit Foundation of India (13), Saadhana Microfin Society (15), Sharada’s Women’s Association for Weaker Section (23) and Asmitha Microfin (29).
Though Grameen Bank has been ranked 17, the list is topped by ASA, another Bangla heavyweight. For Ghosh, who made sandesh (a traditional Bengali sweet) in his younger days to meet his educational expenses, the recognition perhaps is the proof of his core MFI strategy of keeping a tight rein on operating costs. Shunning “a complex mix of offerings” , Bandhan still works only in the area of microcredit. It keeps a simple reporting structure and uses automation only to drive down costs.
If Bandhan does not occupy your mindspace, blame it on simplicity. That is the cornerstone of Ghosh’s philosophy for whom staying “simple, transparent and focused” is more important than dreaming big.
Ghosh and his Bandhan — a fledgling MFI that operates as a society in some of the country’s most poverty-stricken pockets upstaged several domestic and international stalwarts to make it to the second position on Forbes magazine’s first-ever listing of the World’s Top 50 Microfinance Institutions. Bandhan was among the seven Indian MFIs that made the cut, the largest from any country. Bangladesh had an equal number.
In fact, the Forbes list comes as a shot in the arm for the microfinance movement in India with several players finding mention. As Vinutha Reddy, founder of Grameen Koota, says: “If India has to reach its millennium goals, microfinance needs to play a very crucial role in it. With this list, we have now got increased visibility.”
Ms Reddy’s Grameen Koota, an MFI based on the Grameen Bank model, has been ranked 19 while Vikram Akula’s SKS, another Grameen replicator, is at 44th position. The others are Microcredit Foundation of India (13), Saadhana Microfin Society (15), Sharada’s Women’s Association for Weaker Section (23) and Asmitha Microfin (29).
Though Grameen Bank has been ranked 17, the list is topped by ASA, another Bangla heavyweight. For Ghosh, who made sandesh (a traditional Bengali sweet) in his younger days to meet his educational expenses, the recognition perhaps is the proof of his core MFI strategy of keeping a tight rein on operating costs. Shunning “a complex mix of offerings” , Bandhan still works only in the area of microcredit. It keeps a simple reporting structure and uses automation only to drive down costs.
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