ABOUT KBS BANK :
Krishna Bhima Samruddhi Local Area Bank Limited (Samruddhi Bank) was incorporated in 1999 and was granted license by Reserve Bank of India, the bank regulator in India, to carry on banking business as a local area bank in the districts of Mahboobnagar in Andhra Pradesh state and Raichur and Gulbarga districts in Karnataka state. Samruddhi Bank is presently owned entirely by Bhartiya Samruddhi Investments and consulting services Ltd. (BASIX Ltd.) which has invested Rs.50 million in the bank. The Bank started operation in February, 2001
The concept of Local Area Bank (LAB) was introduced in 1996 with a view to mobilize rural savings and make them available for investment in the local area of operation of such banks. The local area banks were expected to bridge the gap in the availability of credit and strengthen the institutional credit framework in rural and semi-urban areas. LABs were required to finance and Isquo; priority sector and rsquo; that included agriculture and allied activities, trading activities, non-farm sector and cottage and village industries and small scale industries. Their lending to priority sector consisting of the above activities was to be minimum 40% of their net bank credit and lending to weaker section was to be at least 25% of their priority sector lending vast number of poor people particularly in rural areas.
Area of Operation:
Samruddhi Bank is operating in three most backward districts located contiguously in two states of Andhra Pradesh and Karnataka. Samruddhi Bank has a network of 14 branches locations are as under: As per the RBI report, all the three districts are considered as under-banked districts of the country. The profile of the area is given below:
Mahboobnagar District:
The district is located in the state of Andhra Pradesh. Bank’s head office is located in the district headquarter two of Mahboobnagar. There are 1477 villages in the district with a population of 35.13 Lakhs. Agriculture is the predominant economic activity with more than 75% of the people depending on agricultural activities for their livelihoods. 48% of the landholdings are less than one hectare in area. 22 Percent of net sown area is under irrigation. Normal annual rainfall is around 600 mm. Millets, Pulses and oilseeds are the major crops with Castor alone occupying 30% of the area. Other important economic activities are handloom weaving and sheep / goat rearing.
There are 229 bank branches including RRBs (70) and co-oprative banks (19) operating in the district. The deposits aggregate Rs.2,690 crores and advances Rs.2,481 crores as on 31.03.2008 and the Credit Deposit ratio is 92%.
Branches in Andhra Pradesh State:
Mahboobnagar
Atmakur
Kodangal
Gadwal
Nargarkarnool
Raichur District:
The district is situated in Karnataka state. It has 808 villages with a population of 16.70 lakhs. Normal rainfall is 621 mm and the predominant economic activity is agriculture. The principal crops are Paddy, Jowar, Tur, Groundnut, Sunflower and Cotton. 42% of landholdings have an average area of 2 hectares and above. Irrigated area constitutes 30% of the net sown area. The district also has substantial area under plantation crops like Mango and Coconut. The district is a major centre for cotton production. There are several agro based industries in the district viz. rice mills, oil mills, cotton ginning and pressing factories and spinning mills.
There are 129 bank branches functioning in the district. The aggregate deposits and advances as on 31.03.2008 are Rs.1456 crores and Rs.2002 crores respectively. Credit Deposit ratio is 138%.
Branches in Karnataka State: (Raichur District)
Raichur,
Manvi
Deodurg-Bank-on-Wheels (A Mobile Br.)
Sidhanur
Gulbarga District:
Gulbarga district is located in the state of Karnataka. The district has 1360 villages. Population is Rs.31.25 lakhs with majority of people involved in agricultural activities. 50% of landholdings have an average area of above 2 hectares. 14% of net sown area has irrigation facilities. Normal annual rainfall is around 700 mm. The major crops grown are Millets, Pulses, Sugarcane and oilseeds. Except for a few cement and Dal processing units, the district does not have any other industrial activity and is considered industrially backward. However, there are a sizeable number of rural go downs located in the district.
There are 209 bank branches operating in the district. The outstanding Deposits as on 31.03.2008 are Rs.2745 crores and advances are Rs.2966 crores. Credit-Deposit ratio is 108%.
Branches in Karnataka State: (Gulbarga Dist.)
Gulbarga
Yadgirs
Kamalapur
Chowdapur
Aland
In addition to deposits, advances have also shown healthy growth, especially in the farm and non-farm segments.
Indian Grameen Services:
Livelihood and Micro finance Promotion Fund (LAMP FUND) :
LAMP Fund which started with the contribution from India Grameen Services, a BASIX group of company worth Rs. 20 Lakhs in the year 2001. Later Development International Desjardins, Canada (DID) with support from CIDA as a part of its ‘ Banking with the Poor in lndia’ project, reinvested the term loan of Rs. 53 Million which was extended to Bhartiya Samruddhi Finance Limited (Samruddhi) of BASIX group to this fund, for strengthening many smaller micro-Finance Institutions (MFls) that are emerging in the country today, linking many more poor people to the formal banking sector.
The primary purpose of the fund is to promote and support micro finance and livelihood initiatives, as well as community based organisations and community based micro-finance institutions in India. The use of this fund focussed on attaining long-term sustainability and contributes to positive outcomes in terms of the promotion of micro finance as a means of livelihood promotion and rural poverty reduction.
The overall goal of the LAMP Fund is:
To contribute to the improvement of the livelihood situation in rural India, especially for the disadvantaged sections of the society, through developing products and supporting financial services to small NGO microfinance institutions (NGOMFIs), as well as community owned microfinance institutions (CO-MFls).
The objective of the LAMP Fund is pursued in two major thrusts, each addressing the target clients from the same angle to achieve the desired goal:
To build the capacity for broadening the offering of the NGO/ CO-MFI from micro-credit to livelihood promotion support through networking with other financial institutions and service providers (such as for training, IT, Insurance, livelihood promotion), as the NGO/ CO-MFI begins to graduate.
To provide access to Financial Services to small and upcoming NGO microfinance institutions (NGO-MFls) run by NGOs as well as community owned microfinance institutions (CO-MFIs).
Eligibility Criteria
Nature of Support Extended
Process of applying
List of Partners
The Livelihood School focuses on livelihood promotion, and not rural development or micro-finance; working with people who lack access to good training due to their inadequate command over English language and not their basic intelligence; guided by practitioners working closely with academicians; Involving a mix of class-room learning and learning on site; at different locations; by an extended faculty group (EFG); in collaboration with multiple institutional.
The School places high values on delivery of high quality. Towards this the School has set up a referral system in addition to an internal review system. It has also developed a rigorous system of faculty selection and makes significant investments in faculty development processes. The School endeavors to ensuring greater involvement of women and to building autonomous, non-hierarchical collaboration with academic institutions, livelihood support agencies and support agencies.
With other institutions:
Indian Grameen Services (IGS) is a not-for-profit Company, registered under the Section 25 of the Companies Act. IGS was promoted by Professional Assistance for Development Action (PRADAN) in 1987, to extend a variety of commercial services, necessary for promoting livelihood opportunities for a large number of rural producers. During 1988-1 995, IGS focused initially on identifying and developing livelihoods, then on provision of technical assistance and support services, and finally on providing marketing support.
Recognizing the limitations of a model in which rural producers were dependent on a reluctant and unfriendly banking system for start-up credit and working capital, and at the same time believing in the need to integrate technical assistance and support services with credit, IGS, during 1996-2000, got actively involved in the promotion of the BASIX group of companies, designed to provide financial services and technical assistance in an integrated manner, and on a commercially sustainable basis. Technical assistance and support services, wherever possible, could be extended in collaboration with various economic agencies operating in rural areas with their own areas of core competence. IGS focused its attention on identifying livelihood opportunities for rural producers in the areas of operation of BASIX and extending various technical assistance and support services necessary for these customers. From the experiences of this phase, IGS reaffirmed its belief that “credit is a necessary but not sufficient condition for livelihood promotion”.
From 2001-onwards, IGS focused its attention on two parallel streams of work, first, strengthening the implementation capabilities of various institutions/agencies, including other companies of the BASIX group, various development organizations and community based organizations (CBOs); and second, continuing knowledge building on livelihood promotion by studying and documenting the livelihood promotion efforts of others, and constantly analyzing its own pilot action research.
With its experience over the years, it recognized the complexity of the task of supporting livelihoods, in the changing economic environment, with variety of services at multiple points along a sub-sector in collaboration with various parties, who provide services in their own self-interest. The overview of IGS initiatives are presented below;
Action Research on various sub-sectors
Institutional Development Services (IDS)
Livelihood & Micro Finance Promotion Fund (LAMP Fund)
New Initiatives
Money Transfer
Samruddhi Bank is offering cheaper money transfer facility payable at more than 228 locations across India in agency arrangement with lClCl bank.
Insurance
Samruddhi Bank is providing various insurance services as follows:
Life insurance for customer - Aviva Life Insurance Company
Livestock insurance - Royal Sundram Insurance Company
Weather insurance - ICICI Lombard Insurance Company
Crop insurance - Agricultural Insurance Company of India
Health insurance - Royal Sundram Insurance Company
Samruddhi Bank has established; Samruddhi Centre for Livelihood Promotion; for extending Agriculture and Business Development services mainly to its customers. Over 1000 of its customers (largely dairy farmers) are already getting such services. The centre is in process of extending such services to customers with agricultural crops like red-gram, paddy and non-farm micro-enterprises like Kirana shops, vendors, small restaurants etc. The centre will also provide technical services for institutional development for such small groups of producers.
MISSION:
The Mission of the company is:
To be a sustainable local Community based Institution.
Providing financial services to the under served.
Particularly rural poor and women to catalyze the provision of technical and support services to the borrowers with the ultimate goal of promoting a large number of livelihoods in the area.
To be a sustainable local community based institution providing financial services to the underserved, particularly rural poor and women and to arrange provision of technical assistance and support services to the borrowers with the ultimate goal of promoting a large number of sustainable livelihoods in the area.
OBJECTIVES OF THE BANK:
To minimise transaction cost to borrowers and bank.
Priority will be given to those not reached by formal financial institutions.
To provide services at the door step of the customers.
To provide Technical Assistance and support services.
Priority to those not reached by formal financial institutions by providing access to banking services including affordable credit.
Provide service at the doorstep of the customers
Provision of technical assistance and other business development services for Agriculture and Non-farm livelihood activities.
Providing various institutional development services (IDS) services including promotion and strengthening of Self Help groups, producer groups, other community based organizations etc.
FOCUS:
The Bank was mainly focus on:
Micro Finance preferably for Rural and Semi-urban areas.
Encourage savings habit among rural poor.
Provide timely credit for economic activities.
Provide / organize Technical Assistance and support services.
Provide Insurance linkage.
MANAGEMENT:
K.B.S. Bank is governed by a professional board with appropriate sub-committees viz. Risk Management Committee, Audit Committee and a number of other key oversight committees.
Managing Director is the Chief Executive Officer of the bank. Managing Director is assisted by the top management of the bank consisting of two Assistant General Managers and Managers looking after various functions of the bank at Head Office. Each district's operations are looked after by a District Manager. The departments functioning at Head office are as under:
Operations and Human Resource (HR): The Department looks after operations and services including credit and human resources. Training and Human Resource Development are also looked after by the Department.
Accounts, Finance and Compliance.
Risk based supervision and internal audit.
Income Tax Department.
Extended customer services which include agri-business development, institutional development services, insurance for both credit as well as deposit products etc.
Resource Mobilisation and Business Development.
Krishna Bhima Samruddhi Local Area Bank Limited (Samruddhi Bank) was incorporated in 1999 and was granted license by Reserve Bank of India, the bank regulator in India, to carry on banking business as a local area bank in the districts of Mahboobnagar in Andhra Pradesh state and Raichur and Gulbarga districts in Karnataka state. Samruddhi Bank is presently owned entirely by Bhartiya Samruddhi Investments and consulting services Ltd. (BASIX Ltd.) which has invested Rs.50 million in the bank. The Bank started operation in February, 2001
The concept of Local Area Bank (LAB) was introduced in 1996 with a view to mobilize rural savings and make them available for investment in the local area of operation of such banks. The local area banks were expected to bridge the gap in the availability of credit and strengthen the institutional credit framework in rural and semi-urban areas. LABs were required to finance and Isquo; priority sector and rsquo; that included agriculture and allied activities, trading activities, non-farm sector and cottage and village industries and small scale industries. Their lending to priority sector consisting of the above activities was to be minimum 40% of their net bank credit and lending to weaker section was to be at least 25% of their priority sector lending vast number of poor people particularly in rural areas.
Area of Operation:
Samruddhi Bank is operating in three most backward districts located contiguously in two states of Andhra Pradesh and Karnataka. Samruddhi Bank has a network of 14 branches locations are as under: As per the RBI report, all the three districts are considered as under-banked districts of the country. The profile of the area is given below:
Mahboobnagar District:
The district is located in the state of Andhra Pradesh. Bank’s head office is located in the district headquarter two of Mahboobnagar. There are 1477 villages in the district with a population of 35.13 Lakhs. Agriculture is the predominant economic activity with more than 75% of the people depending on agricultural activities for their livelihoods. 48% of the landholdings are less than one hectare in area. 22 Percent of net sown area is under irrigation. Normal annual rainfall is around 600 mm. Millets, Pulses and oilseeds are the major crops with Castor alone occupying 30% of the area. Other important economic activities are handloom weaving and sheep / goat rearing.
There are 229 bank branches including RRBs (70) and co-oprative banks (19) operating in the district. The deposits aggregate Rs.2,690 crores and advances Rs.2,481 crores as on 31.03.2008 and the Credit Deposit ratio is 92%.
Branches in Andhra Pradesh State:
Mahboobnagar
Atmakur
Kodangal
Gadwal
Nargarkarnool
Raichur District:
The district is situated in Karnataka state. It has 808 villages with a population of 16.70 lakhs. Normal rainfall is 621 mm and the predominant economic activity is agriculture. The principal crops are Paddy, Jowar, Tur, Groundnut, Sunflower and Cotton. 42% of landholdings have an average area of 2 hectares and above. Irrigated area constitutes 30% of the net sown area. The district also has substantial area under plantation crops like Mango and Coconut. The district is a major centre for cotton production. There are several agro based industries in the district viz. rice mills, oil mills, cotton ginning and pressing factories and spinning mills.
There are 129 bank branches functioning in the district. The aggregate deposits and advances as on 31.03.2008 are Rs.1456 crores and Rs.2002 crores respectively. Credit Deposit ratio is 138%.
Branches in Karnataka State: (Raichur District)
Raichur,
Manvi
Deodurg-Bank-on-Wheels (A Mobile Br.)
Sidhanur
Gulbarga District:
Gulbarga district is located in the state of Karnataka. The district has 1360 villages. Population is Rs.31.25 lakhs with majority of people involved in agricultural activities. 50% of landholdings have an average area of above 2 hectares. 14% of net sown area has irrigation facilities. Normal annual rainfall is around 700 mm. The major crops grown are Millets, Pulses, Sugarcane and oilseeds. Except for a few cement and Dal processing units, the district does not have any other industrial activity and is considered industrially backward. However, there are a sizeable number of rural go downs located in the district.
There are 209 bank branches operating in the district. The outstanding Deposits as on 31.03.2008 are Rs.2745 crores and advances are Rs.2966 crores. Credit-Deposit ratio is 108%.
Branches in Karnataka State: (Gulbarga Dist.)
Gulbarga
Yadgirs
Kamalapur
Chowdapur
Aland
In addition to deposits, advances have also shown healthy growth, especially in the farm and non-farm segments.
Indian Grameen Services:
Livelihood and Micro finance Promotion Fund (LAMP FUND) :
LAMP Fund which started with the contribution from India Grameen Services, a BASIX group of company worth Rs. 20 Lakhs in the year 2001. Later Development International Desjardins, Canada (DID) with support from CIDA as a part of its ‘ Banking with the Poor in lndia’ project, reinvested the term loan of Rs. 53 Million which was extended to Bhartiya Samruddhi Finance Limited (Samruddhi) of BASIX group to this fund, for strengthening many smaller micro-Finance Institutions (MFls) that are emerging in the country today, linking many more poor people to the formal banking sector.
The primary purpose of the fund is to promote and support micro finance and livelihood initiatives, as well as community based organisations and community based micro-finance institutions in India. The use of this fund focussed on attaining long-term sustainability and contributes to positive outcomes in terms of the promotion of micro finance as a means of livelihood promotion and rural poverty reduction.
The overall goal of the LAMP Fund is:
To contribute to the improvement of the livelihood situation in rural India, especially for the disadvantaged sections of the society, through developing products and supporting financial services to small NGO microfinance institutions (NGOMFIs), as well as community owned microfinance institutions (CO-MFls).
The objective of the LAMP Fund is pursued in two major thrusts, each addressing the target clients from the same angle to achieve the desired goal:
To build the capacity for broadening the offering of the NGO/ CO-MFI from micro-credit to livelihood promotion support through networking with other financial institutions and service providers (such as for training, IT, Insurance, livelihood promotion), as the NGO/ CO-MFI begins to graduate.
To provide access to Financial Services to small and upcoming NGO microfinance institutions (NGO-MFls) run by NGOs as well as community owned microfinance institutions (CO-MFIs).
Eligibility Criteria
Nature of Support Extended
Process of applying
List of Partners
The Livelihood School focuses on livelihood promotion, and not rural development or micro-finance; working with people who lack access to good training due to their inadequate command over English language and not their basic intelligence; guided by practitioners working closely with academicians; Involving a mix of class-room learning and learning on site; at different locations; by an extended faculty group (EFG); in collaboration with multiple institutional.
The School places high values on delivery of high quality. Towards this the School has set up a referral system in addition to an internal review system. It has also developed a rigorous system of faculty selection and makes significant investments in faculty development processes. The School endeavors to ensuring greater involvement of women and to building autonomous, non-hierarchical collaboration with academic institutions, livelihood support agencies and support agencies.
With other institutions:
Indian Grameen Services (IGS) is a not-for-profit Company, registered under the Section 25 of the Companies Act. IGS was promoted by Professional Assistance for Development Action (PRADAN) in 1987, to extend a variety of commercial services, necessary for promoting livelihood opportunities for a large number of rural producers. During 1988-1 995, IGS focused initially on identifying and developing livelihoods, then on provision of technical assistance and support services, and finally on providing marketing support.
Recognizing the limitations of a model in which rural producers were dependent on a reluctant and unfriendly banking system for start-up credit and working capital, and at the same time believing in the need to integrate technical assistance and support services with credit, IGS, during 1996-2000, got actively involved in the promotion of the BASIX group of companies, designed to provide financial services and technical assistance in an integrated manner, and on a commercially sustainable basis. Technical assistance and support services, wherever possible, could be extended in collaboration with various economic agencies operating in rural areas with their own areas of core competence. IGS focused its attention on identifying livelihood opportunities for rural producers in the areas of operation of BASIX and extending various technical assistance and support services necessary for these customers. From the experiences of this phase, IGS reaffirmed its belief that “credit is a necessary but not sufficient condition for livelihood promotion”.
From 2001-onwards, IGS focused its attention on two parallel streams of work, first, strengthening the implementation capabilities of various institutions/agencies, including other companies of the BASIX group, various development organizations and community based organizations (CBOs); and second, continuing knowledge building on livelihood promotion by studying and documenting the livelihood promotion efforts of others, and constantly analyzing its own pilot action research.
With its experience over the years, it recognized the complexity of the task of supporting livelihoods, in the changing economic environment, with variety of services at multiple points along a sub-sector in collaboration with various parties, who provide services in their own self-interest. The overview of IGS initiatives are presented below;
Action Research on various sub-sectors
Institutional Development Services (IDS)
Livelihood & Micro Finance Promotion Fund (LAMP Fund)
New Initiatives
Money Transfer
Samruddhi Bank is offering cheaper money transfer facility payable at more than 228 locations across India in agency arrangement with lClCl bank.
Insurance
Samruddhi Bank is providing various insurance services as follows:
Life insurance for customer - Aviva Life Insurance Company
Livestock insurance - Royal Sundram Insurance Company
Weather insurance - ICICI Lombard Insurance Company
Crop insurance - Agricultural Insurance Company of India
Health insurance - Royal Sundram Insurance Company
Samruddhi Bank has established; Samruddhi Centre for Livelihood Promotion; for extending Agriculture and Business Development services mainly to its customers. Over 1000 of its customers (largely dairy farmers) are already getting such services. The centre is in process of extending such services to customers with agricultural crops like red-gram, paddy and non-farm micro-enterprises like Kirana shops, vendors, small restaurants etc. The centre will also provide technical services for institutional development for such small groups of producers.
MISSION:
The Mission of the company is:
To be a sustainable local Community based Institution.
Providing financial services to the under served.
Particularly rural poor and women to catalyze the provision of technical and support services to the borrowers with the ultimate goal of promoting a large number of livelihoods in the area.
To be a sustainable local community based institution providing financial services to the underserved, particularly rural poor and women and to arrange provision of technical assistance and support services to the borrowers with the ultimate goal of promoting a large number of sustainable livelihoods in the area.
OBJECTIVES OF THE BANK:
To minimise transaction cost to borrowers and bank.
Priority will be given to those not reached by formal financial institutions.
To provide services at the door step of the customers.
To provide Technical Assistance and support services.
Priority to those not reached by formal financial institutions by providing access to banking services including affordable credit.
Provide service at the doorstep of the customers
Provision of technical assistance and other business development services for Agriculture and Non-farm livelihood activities.
Providing various institutional development services (IDS) services including promotion and strengthening of Self Help groups, producer groups, other community based organizations etc.
FOCUS:
The Bank was mainly focus on:
Micro Finance preferably for Rural and Semi-urban areas.
Encourage savings habit among rural poor.
Provide timely credit for economic activities.
Provide / organize Technical Assistance and support services.
Provide Insurance linkage.
MANAGEMENT:
K.B.S. Bank is governed by a professional board with appropriate sub-committees viz. Risk Management Committee, Audit Committee and a number of other key oversight committees.
Managing Director is the Chief Executive Officer of the bank. Managing Director is assisted by the top management of the bank consisting of two Assistant General Managers and Managers looking after various functions of the bank at Head Office. Each district's operations are looked after by a District Manager. The departments functioning at Head office are as under:
Operations and Human Resource (HR): The Department looks after operations and services including credit and human resources. Training and Human Resource Development are also looked after by the Department.
Accounts, Finance and Compliance.
Risk based supervision and internal audit.
Income Tax Department.
Extended customer services which include agri-business development, institutional development services, insurance for both credit as well as deposit products etc.
Resource Mobilisation and Business Development.
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