Grameen Financial Services

Grameen Financial Services Pvt Ltd (Grameen Financial) is an NBFC set up in 1991 as Sanni Collection Pvt Ltd. The company was taken over by its current management in 2007 and renamed as Grameen Financial Services Pvt Ltd. Grameen Financial commenced its microfinance operations in October 2007 by taking over the microfinance portfolio of Grameen Koota, part of T Muniswamappa Trust.

GRAMEEN FINANCIAL SERVICES

Grameen Koota in turn started its microfinance operations in 1999, after receiving a seed fund programme from Grameen Trust, Bangladesh. Grameen Financial had a network of 161 branches and a loan portfolio of Rs.524 crore as on March 31, 2013.

Performance on key parameters

Portfolio outstanding grew at a CAGR of 44 percent during the 2 years ended March 31, 2013.
Asset quality is moderate; the 30+ days past due was around 0.9 percent as on March 31, 2013. Operations are predominantly concentrated in Karnataka (which accounted for 80 percent of the loan portfolio as on March 31, 2013).
Has relationships with more than 20 lenders, including apex MFIs and public, private, and foreign banks. The company also raises funds through securitization on a regular basis; securitization accounted for nearly 26 percent of its overall borrowings as on March 31, 2013.
Capitalization remains adequate for its current and planned scale of operations; the company raised Rs.53.2 crore from Creation Investments (Rs 37.5 crore), Incofin and MicroVentures in February 2013 to support its medium-term growth plans.
Profitability through modest has improved during 2012-13 primarily on account of the significant improvement in operating expense ratio; ability to maintain its profitability over the medium term despite the margin cap will be critical.