BSS Microfinance

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.

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