micro Finance

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micro Finance Management Education
G R Chintala BIRD
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Relevance of mF for Management Studies

• Is mF a paying proposition for
• Management graduates ?
• Depth of the Sector?
• Will it absorb hordes of MBAs ?
• Salary Expectations?

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Business projections

• Which is the true business projection of the
  sector ?
• Vijay Mahajans Rs 6 lakh crores?
• Mc Kinseys Rs 20 lakh crores?

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mF subject where should it figure?

• As a subject in regular MBA?
• or
• Exclusive MBA mF?

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If, as a part of regular MBA

• mF industry should canvass the potential among
  all Management Institutes
• Campus recruitments should prominently figure out
  the placements in the sector

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Preference however is for

• Exclusive MBA mF
• If so, Whether existing Management Institutes
  should dish out a separate programme ?
• Or
• Should Specialized MBA mF Institutes emerge?

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What could be the course content?

• One or Two years PG programs can be designed
• Importance however, be given to Modular approach
  whereby the students would gradually come to
  terms with the enormity of the task, harsh
  working environments, empathy for the poor etc.

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Modules?

• Module I
• Introduction to Livelihoods approach in the
  prevailing economic scenario.
• Structural transformation
• Gender sensitivity in approach
• Appropriate livelihood selection by the poor of
  different strata

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Modules?

• Module II
• Credit purveyance in the country.
• Institutional efficiencies
• Core beliefs of various RFIs about mF
• Empathy for poor and their emancipation
• Different Banking products, appropriateness of
  mF sector, need for redesigning
• Risk mitigation products and customisation to
  mF sector

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Modules?

• Module III
• Introduction to Management
• Organisations Management MBOs, Social
  Responsibility,
• Strategic mgmt, Planning tools techniques
• Team approach
• Personal Relations

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Modules?

• Module IV
• Inclusion
• Financial Inclusion, approaches of various
  institutions
• MFIs role in FI
• BC/BF approach for FI
• Designing of Deposit Credit products,
  Costing
• Delinquency Mgmt
• Various FI services, their pricing

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Modules?

• Module V
• ICT as FI enabler
• Various ICT products
• Cost Benefit comparison
• Hastening the FI coverage with cost
  competitiveness
• Loading various FI services on ICT platform
  created
• Hardware Software tendering purchase

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Modules?

• Module VI
• Financial Mgmt
• Accounting concepts, B/S preparation, Receipt
  Payment system
• Ratio analysis specific to mF sector
• Financial decisions- w/c, capital mobilisation,
  cost of capital, dividend issues etc
• Negotiating deals with Donors for capital
  infusion etc

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Modules?

• Module VII
• Marketing Management
• Philosophy, Consumer Behaviour, Markets
  their irrationality
• Market forecasting, Research, MIS
• Marketing techniques of mF products and
  Produce of mF clients

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Modules?

• Module VIII
• Business with the poor
• Empathy for the poor
• Attitudinal alteration through Human Lab
  approach
• Exposing to Slum dwellers
• Negotiating skills to do business with the poor

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Modules?

• Module IX
• Institution Building Net working
• PRA techniques, Group approach, SHG, Clusters,
  Federations, Producer companies
• Problems of managing Institutions
• Building credit worthiness of the mF client,
  product delivery and Financial Literacy of
  clients to upscale the business
• Networking of Institutions for avoiding
  multiple indiscriminate financing
• Cooperation with other institutions for cross
  selling

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Modules?

• Module X
• Risk Management in mF operations
• Area development approach for lending, Village
  Household surveys, Index for loaning
• Appropriate loaning with repayment capability
  as the basic funda
• mF plan of the Unit / Branch
• MIS and Internal checks
• Auditing Audit policy, Compliance
• Attrition of staff, dynamic HR policy approach
• Salary, incentives, moral hazards

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Modules?

• Module XI
• Upscaling of operations
• Drivers of growth
• Client Business Segmentation
• Unhealthy practices to upscale and perils
• PAR watch preventing Domino effect
• International tie ups, Valuation of MFIs,
  Issuance of CPs, Listing in Stock Markets

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Issues need to be deliberated?

• If Institute like BIRD offers such elaborate PG
  course, what should be the Fee structure?
• Whether present MFIs come for campus recruitment?
• What should be approx batch strength per year?

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Thank You