Professional Documents
Culture Documents
Limited
Private Placement Memorandum
www.chaintanyaindia.in
Both aspects of our mission are vitally important and self reinforcing.
Evolution from a rural , micro finance NGO to NBFC has contributed to mission clarity
Bringing together the best practices from the corporate world and from
community and rural development experiences
Data Till 31st March indicates that MFI’s are fastest growing segment and currently
have less than 25% of micro loans
Commercial Banks are reducing their exposure to SHG’s while the growth of SHG
loans is around 20%
Joint Liability Group Lending by Micro Finance Institutions is poised for faster growth
Chaitanya - Improving Lives
State Wise Reach of Micro Loans
Some States of Popula Percent Estimated Share of Total Share of Coverage
India tion in age Micro Credit National MFI+SHG National to
Million Below potential in Potential Outstanding Portfolio Potential
Poverty Bn in Billion
Uttar pradesh 166 31% 386 17.8% 25.2 5.5% 6.53%
Bihar 83 43% 268 12.4% 9.9 2.2% 3.69%
Maharashtra 97 25% 182 8.4% 20.2 4.4% 11.12%
MP 60 37% 167 7.7% 11.9 2.6% 7.13%
WB 80 27% 162 7.5% 34.3 7.5% 21.19%
TN 62 21% 130 6.0% 62.9 13.8% 48.28%
Orissa 36 47% 127 5.9% 26.8 5.9% 21.05%
AP 76 16% 122 5.6% 157.7 34.7% 129.68%
Karnataka 52 20% 104 4.8% 34.5 7.6% 33.16%
Rajasthan 56 15% 84 3.9% 6.9 1.5% 8.25%
Gujurat 50 14% 70 3.2% 4.3 1.0% 6.18%
Rest of Country 182 20% 364 16.8% 60.0 13.2% 16.48%
2,165 455
Five States show coverage to potential greater than 20% while most of the states
show enormous growth potential
The right organisation has immense potential in India and in a lot of other
developing countries of the world.
An evolving and nascent industry has to build sound management and leadership to
sustain its growth
Effectiveness
Some MFIs are slowly building towards the required combination of effectiveness
and efficiency, however organizational abilities are still average
The opportunity size is very sizeable however till a base business volume is
reached there are significant risks
Till the industry matures the larger threat is industry wide defaults, regulatory
risks and systemic risks
The Social Value of the business is an important aspect of the mission of the
company and we believe that the social objectives of the business is in
alignment with the financial objective of maximizing value in the long term
for investors
Welcome to Chaitanya
Chaitanya - Improving Lives