IFMR Trust

Our Mission:

To ensure that every individual and every enterprise

has complete access to financial services.

We are a young organisation with a team of about 130 people with skills spanning
commercial banking, microfinance, structured finance, private equity and
investment banking.
Mission: Ensuring that every individual and every enterprise has complete
access to financial services.

In order to achieve our mission, we are :

The companies that comprise the IFMR Trust

Finance Foundation
IFMR Rural Finance™
• Creates financial institutions in under-served parts of rural India called Kshetriya Gramin
Financial Services (KGFS) that aims at maximizing financial well-being of the communities
they serve
• Each KGFS is/will be a Non-Banking Financial Company (NBFC) operating in two districts with
a population of approx. 4-5 million and will have approx. 300 branches
• Three KGFSs have been set up and are operational in Tamil Nadu, Orissa and Uttarakhand
• Each branch offers Innovative products:
– Investments in the form of money market mutual funds (in 1 rupee size), gold plan etc.
– Insurances – accident, livestock, term life etc.
– loans (secured & unsecured) - joint liability, retailer, individual, asset backed etc.
– Remittances – Domestic & International (to be launched)
• Continuously expanding operations in the existing geographies; Currently 87 ‘Brick & Mortar’
branches operational - 57 in TN; 15 each in Orissa and Uttarakhand
• Each KGFS:
– hires local talent, trains them to offer customized financial propositions that results in
financial well-being of their geography
– leverages technology to minimise transactional costs and reduce risk
IFMR Rural Finance™ is the trademark used by IFMR Holdings Private Limited
IFMR Capital
• Provides reliable and efficient access to debt capital markets to institutions that impact poor
households like
– Rural and urban microfinance institutions (MFIs)
– Institutions lending to small and medium enterprises
• Till date we have completed about INR 2 billion of microloan securitisations to provide that access,
more products apart from securitisation product on anvil, e.g. non-convertible debentures
• Some of our break-throughs:
– Developed proprietary underwriting guidelines for securitization of the asset class
– Facilitated first rated securitization of microfinance loans in India
– Enabled the first Mutual Fund Investment in microloan backed securitization in India
– Arranged and co-invested in the world’s first multi-originator securitisation of micro-loans in
January 2010. Second multi-originator, of INR 339 million completed since then.
– Securitised and invested in microloans of more than INR 3 billion with 12 MFIs across India
– Launched the first asset-backed securitisations deal portal on our website
(http://capital.ifmr.co.in)
• We use financial tools such as
– Securitization & Credit enhancement
– Developing new rating methodologies along with rating agencies
– New product development through structuring
IFMR Mezzanine Finance
• Addresses long term capital needs of microfinance institutions by working in the under-developed
quasi equity space by structuring innovative hybrid debt market instruments

• Works to
– Provide medium to long term growth capital to MFIs
– Enable MFIs in meeting capital adequacy requirements by catering to the Tier II capital
requirements
– Partner with small MFIs for a long term

• Some of our breakthroughs:

– Developed proprietary underwriting criteria for assessing risk
– Have made two sanctions in the last six months

• Committed to ensuring access to finance

– Partnership with organisations like ACCESS-ASSIST to identify and work with small MFIs
IFMR Ventures
• Addresses systemic risks – typically linked to information and market access – faced by
enterprises
• Identified specific sectors where rural India has sustained competitive advantages,
either as a producer or a consumer viz.
– Agri Terminal Markets – Crafts, Apparel & Furnishings
– Dairy – Rural Energy
– Rural Private Schools – Vocational Training
– Rural Drinking Water – Rural Tourism
– FMCG
• For each sector IFMR Ventures has incubated a specific Network Enterprise (NE)
• Each NE is given the ability to partner, finance, build and/or directly operate to solve
problems that they see in their respective sectors
• Each NE develops a back-end to address critical gaps in its respective sector
• Success in the NE Model is defined by millions of local enterprises getting access to
finance in adequate quantity and at reasonable terms and using that to grow their
business
IFMR Finance Foundation Finance Foundation

• Focuses on bridging knowledge, practice and regulatory gaps for IFMR Trust
• Promotes the development of a well-functioning financial system by:
– Identifying priorities for research, initiating action research and pilot projects to
be undertaken by various IFMR Trust ventures and partners
– Effectively disseminating and advocating the outcome of the initiatives
• Seeks to influence thinking and action among stakeholders, policymakers and
practitioners
• Develops IFMR Trust’s Strategic Framework
• The following are priority areas:
– Understanding Clients’ financial needs and behavior
– Designing and testing appropriate channels for a range of financial services and
products
– Evaluating the impact of financial access on individuals/households and economies
– Enabling financial market infrastructure for risk transfer
– Knowledge building initiatives
IFMR Trust – Governance

Has an eminent governing council comprising :

IFMR Trust – Management
Has an experienced management comprising :
What’s in it for you?
Thank you