BSS Microfinance

1 min read

BSS Microfinance Pvt Ltd (BSS Microfinance) started its microfinance operations in April 2008 by taking over the operations of Bharatha Swamukti Samasthe Trust (BSS), an MFI operating as a trust since 1997.

BSS Microfinance follows the Grameen Bank model of group lending and predominantly offers group loans for a 2-year period with fortnightly repayment. BSS Microfinance, operating predominantly from Karnataka, had a network of 67 branches and a loan portfolio of Rs.184 crore as of September 30, 2013.

BSS Microfinance


Performance on key parameters

  • Loan portfolio increased to Rs.160 crore as on March 31, 2013, from Rs.125 crore as on March 31, 2012, year-on-year growth of 28 percent
  • Maintains healthy collection performance with a collection efficiency of nearly 99 percent. Operations are, however, predominantly concentrated in Karnataka (which accounted for 93 percent of the loan portfolio as on March 31, 2013)
  • Has relationships with 13 lenders as on March 31, 2013; the company also had secured on-demand loan from BSS Trust and BSS Mutual Benefit Trust outstanding on its books as on March 31, 2013
  • Capitalization remains adequate for the current scale of operations; however, the ability to raise capital from external sources will be crucial to help maintain market share
  • Earnings profile is modest, with a return on managed assets of 1.1 percent during 2012-13. Passes on part of operating profit as interest rebates to borrowers; therefore earnings profile remains modest



Sushma Singh

Sushma is a full-time blogger and financial expert. Join Sushma and 10,000 monthly readers here to learn how to save and invest your money wisely.

Latest from Blog