Water:
I
asked the rain,
“When
was your first shower?”
It
replied,
“My
every shower is first shower!”
Once
there was a Zen master and a disciple. Every day both used to take bath in a
river nearby to their Ashram. One day when both took their bath and coming
back, disciple asked to Master that when he’ll get enlightenment. Master did
not replied but asked him that how he feels about everyday river bath. Disciple
replied, “Master, what is special in taking bath in same river always, it’s
boring!” then Master said, “Kid, you are not seeing the same water, which you
saw a minute before. You can’t take bath twice in the same river” with smile. The
disciple got enlightened.
Retreat
in DHAN is one of the routine event. But every year the experience and learning
are different and refreshing. Last year our retreat with Tribal community has
given opportunity to understand the real meaning of development to me. As far
as development perspectives concern, most of the time we refer or go with
western principles and their ideology. We rank our lives with westernized
development indicators such as per capita income, educational attainments,
advanced healthcare systems, technological advancements and high end gadgets,
infrastructures, etc., just because a remote tribal area, misses above said
aspects we conclude that they are under-developed. While doing so, we become
blind to the most important point that they are happier than most of the so called well-developed people. During my
stay at tribal village, when I saw some 80+ years old tribal women, who is physically
healthy and effortlessly dancing to the local folk song our so called life with
high cost, high end medical systems are becoming meaningless. By this
experience, I understood that real Human Development is not in high per-capital
income or higher level of education, longevity of life with the support of hand
full of medicines, but it is blossoming in simple life with natural harmony. In
future, I would love to develop alternate methodology for calculating Human
Development Index based on tribal life style.
Our
academics, bilateral organizations, research publications are teaching
development is something discovered and defined by western countries. We
sincerely look World development index of World Bank, HDI of UNDP and other
indexes concern about ranking of our country. But in reality, our tradition
followed more reasonable, human-friendly life style for thousands of years,
which was unnoticed or hided by so called development authorities. During late
1980’s, when the small, insignificant country “Bhutan” first coined the word
“Happiness Index” by rejecting all economics based development indicators, rest
of the world looked strangely on Bhutan. But the tiny Bhutan strongly believed
that their country may not become economic power but its citizens can be happier
than any well advanced country. This paradigm shift in seeing development has
flashed light on development thought. New school of thinking are emerging where
they are going back to basics and advocate for simple, natural life.
In
similar line, I’m expecting that this retreat with urban community will provide
greater insights on my understanding on urban development and poverty. The
river is same but the streams are always fresh! J
Earth:
I
asked the earth,
“What
are you going to offer us?”
It
replied,
“I’ll
offer what you have given!”
Presently
I’m working with KDFS. My association with DHAN started during 2003 by working
with Panchayat theme for first five years then shifted to coordinate Kalanjiam
and Vayalagam locations at Kanchi Region for next five years. During late 2013,
I got transferred to KDFS. I should admit that in all these three phases of
work are great. Fortunately I had / have very good team and excellent mentors
around me in all these years. It made me to enjoy every day work with great
pleasure. Only because of my senior’s support I could take up completely
different roles in the past years. I take this opportunity to thank collogues,
people functionaries, community leaders who are worked with me, guided me and
supporting me to shape my learning all the way.
I’m
native of Triuttani, a small town near Chennai. I have blessed with small and
sweet family. My father was a banker, mother is homemaker and younger brother
is working as legal officer in a private bank at Chennai. I’m with my wife and
three year old Daughter living in Madurai. All my family members have given enough
freedom and holds great trust on me. This trust regulates me to be more
responsible to them.
After
finishing my Pharmacy graduation, I thought I’ll start good carrier in
healthcare sector. But in the initial days of my health care work, marketing
medicines and negotiating with doctors I experienced lots of corruption and
malpractices in a huge way. I was restless during the period. I felt like, I’m
got locked in a public toilet J. Then
I moved out from the job and followed my childhood passion to pursue carrier in
community development. I started attempting for civil services examinations
(CSE). Meanwhile I competed my PG in Public Administration. Even though I could
not succeed in CSE because of my inadequate preparations, I gained wider
exposure in social subjects and it tuned my learning attitude in to higher
levels.
When
I saw advertisement about PDM from DHAN Academy, I felt that the course could
match my interest. Then I went through Program in Development Management. In my
20 years of education, the Academy life is greatly impacted me in terms of
building confidence, diversifying my perspectives and looking things laterally.
The
prime reason for me to find in DHAN is its purpose drive, friendly colleagues
and the culture with which the space for learning well rooted. Rightly, my
interest in public services also matched. With my 13 years of association with
DHAN, I could feel, my understanding related with development sector is improved
with every day learning. Apart from my personal readings and references, every
discussion with colleagues of DHAN has helped to enhance motivation level in taking
new tasks and challenges. I’m getting what I have offered!
Sky:
I
asked the sky,
“Where
are you ending?”
It
replied,
“I end
at your mind!”
Once
there was a young Buddhist. He started his journey to his home. During his
travel, he reached to the banks of a wide river. Staring hopelessly at the
great obstacle in front of him, he pondered for hours on just how to cross such
a wide barrier. Just as he was about to give up his pursuit to continue his
journey he saw an old man on the other side of the river. The young Buddhist
yells over to the old man, "can you tell me how to get to the other side
of this river"? The old man ponders for a moment looks up and down the
river and yells back, "My son, you are on the other side".
We
are made up of what we think. Our thoughts are shaping our day to day lives. What
we think as a super solution today, may be a future problem. During my
occasional discussion with Sri.Madhan on cause and effect of our actions, I
learnt that dynamics of universe is more powerful, collective and eternal. We
are just tools to perform actions and the results are coming from universal
force. Well, let me stop now. It’s becoming more philosophical J. What I’m trying to say is I
often experiencing these principle in action with my current roles at KDFS.
Microfinance
sector in India is undergoing drastic transition. Ten years ago, it is
considered to be one of the golden egg yielding hen to banks and financial
institutions. But now it has becoming hiding dragon. Microfinance in India with
both MFI lead and SHG lead models serving to 13 Crores families with credit
out-reach of about Rs.75000 Crores. But still the magnitude of unexplored blue
sea is huge and significant.
In
this context, even after a long 14 years of operations, our KDFS has just crossed
Rs.32 Crores portfolio only last year. Portfolio wise, our share in the market
is negligible. In several external forums people use to ask why such low
reach-out. Our answer is very clear. We are not replacing Bank system, we are
not competitive to bank linkage but we are complimentary to build better bank
linkages, we serve for bridge financing. Being part of DHAN collective, KDFS
derives philosophy from DHAN and it serves as “value compass” to KDFS to set
its vision, goal and operational targets.
While
I joined in KDFS, I got little excited to make portfolio Rs.100+ Crores within
one year. But I learnt that it’s not the financial reach, not the book size
matters but the purpose has. So, I could accommodate with slow and steady
growth.
KDFS
is not just servicing credit facility but we are disseminating greater message
that “community owned MFI can serve better, perform efficient” to the sector.
The aspect which I admired is our Board’s firm decision on not to raise
interest rate. Presently the MF sector interest rates are ranging from 20 to
26% p.a in addition to processing / other charges. But KDFS is kept its
interest rate very low (13% p.a) without any other charges. Even government
owned MF institutions like NABFINS, similar Sec.8 MFIs such as Sangamitra are
charging 16 – 20% p.a. to its clients. So, we can proudly say ours is lowest
interest rate in the whole MFI sector.
On
the other hand, KDFS is getting credit facility from various Banks and lending
to SHGs. Our interest payments to banks are crossed 12% p.a. Which means KDFS
operational income margin is lesser than 1% p.a. Which means from every Rs.1
lac loan KDFS is receiving only Rs.1000 / year as interest income, if the
repayments are regular and prompt. Even the 30 Crores of portfolio will only
fetch Rs.30 lacs as interest income.
Out
of 5000+ groups if 10 groups with loan o/s of 30 lacs are become defunct we
will loss all the income and result in negative performance. The situation is like
walking in the sharp edge of long knife, but we enjoy it. Here is the power of
community. We bank on collective system of Mutual movements. We wanted to
showcase KDFS is completely different breed in the sector, where the mutuality
and collectiveness results in greater performance even in thin or almost nil
margins.
Last
year our team has taken good efforts in developing better system at KDFS. With
the support of programme teams we could improve the appraisal mechanisms,
monitoring disbursements and collection. Our team members are frequently
reaching-out to field, interestingly KDFS has crossed cumulative disbursement to
the tune of more than Rs.200 Crores during last March’2015 and we have
introduced new systems like ACH (automated Clearance House) facility for debit
and credit transactions. The coming year will be 15th year for KDFS.
It’s very special to us. We are planning to stabilize our KDFS branches,
establish MIC (Member Information Center) to link directly with SHGs, include
select federations as our shareholders and enhance our portfolio to Rs.50 + Crores,
more importantly we will start sharing our income for development causes in
consultation with central office.
Our
team consist of small but perfect mix of persons with complementary skills.
From most experienced, humane, skillful mentor, Sri.Josephraj to newly joined
staff Mr.Azagu we are proud for my team. Whenever we discusses about the future
of KDFS, our team express their vision to transform KDFS as “Community owned
Bank”. We know it is long shot, but we prepared to blow it with fullest
motivation and interest. The limitless Sky ends at our mind!
Fire:
I
asked the fire,
“Why
are you burning everything?”
It
replied,
“I’m
purifying everything!”
In
our system, I believe that every individual person is good. I sincerely value
that they are working for great cause at their respective levels. But I often
feel that they lack in larger perspective. They don’t prefer suggestions, they
think they are perfect with their work. Most of us are comfortable to work in
zylos by compartmenting my boundaries. They see programme or central office
instructions as limitations to their freedom. That’s the problem.
At
KDFS we are lending to 200 locations spread in 13 states. In almost all DHAN’s
project locations we have reach-out. And we know, not to own the performance of
KDFS by us. Our performance is reflection of field practices. Both great and worst
outcomes at KDFS are results of field actions. In that sense, we serve as
mirror to programmes and project locations.
By
observing the data and patterns at KDFS for the past one and half year what I
understand is our people are highly insensitive to Data. Sorry to say this. As
I learnt that, self – review and self – critic is part of self – growth and
performance, I must little hard about it. Most of us are not looking the data,
even if we look the data; we are not inferring, even if we infer; we are not
taking corrective actions.
Let
me detail from KDFS experience. We are providing credit facility to groups and
the groups are repaying its installments by depositing directly in KDFS
account. We expect the respective location to provide repayment details by the
month end to KDFS for entry. It is as simple as this. Now, please go through
the following aspects:
1. KDFS
is having Rs.21 lacs under the a/c head of excess amount payments. It means,
group has cleared all the outstanding to KDFS. Even after, they are deposited
excess amount, which is to be returned back to respective groups by us. For our
kind of institutions the amount (Rs.21 lacs) under this head is really big and
unacceptable. This shows our locations has poor monitoring system on tracing
the repayments of groups. If this much amount is with KDFS, what would be in
various banks? (Of course, we believe bank system will redirect the excess
payment to savings bank account. But the question is are we sure about it)
2. At
KDFS every month ends with nearly Rs.1.5 to 2 Crores under suspense account (as
of today it is 1.8 Crores). The average monthly repayment at KDFS is about Rs.3
Crores of which we get on time details of payment for only about 1 Crores. For
remaining amount we are not getting timely details from locations. One person
at KDFS should exclusively work with locations to call them, request them, and
remind them several time to get the payment details. Some time, cleaning of
suspense amount takes more than 6 months.
3. As of
today we are still need to receive loan disbursement documents from 230 groups.
It means, we have released the loan by cheque to the group and along with the
cheque we sent loan documents which is expected to be signed by the group
leaders send back to KDFS for documentation. It is really disappointing to know
that few locations are pending these documents for more than one year L.
4. Follow
– up of Overdue and NPA accounts. During regular months follow-up of OD and NPA
will not get more focus. But during last quarter of every financial year, this
will be taken up very seriously and addressed to the optimal level. Our field
teams are doing miracle in the last quarter but they never care in other
months. Differences in the range of priority is real concern to us.
5. Each
group has to pay Rs.2000 as share capital to KDFS. As per KDFS policy only by
paying Rs.2000 we need to enroll group in our membership and provide credit
services. So far we have provided credit service to nearly 15,000 groups. If
all these groups have paid the share capital, our own fund would be about Rs.3
Crores. But present cumulative share capital is only 2.2 Crores. There is gap of
80 lacs in the present reach. All the colleagues are very well know that share
capital is serving as lifeline to KDFS to keep its operations at minimal level.
But it is not resulting in favorable situation.
6. When
people are sending their loan application, they expect immediate release of
credit. If it delayed for few weeks’ people get disappointment with KDFS. But
while they get local bank linkage, they suddenly close all the outstanding with
KDFS, they don’t care about portfolio challenges at KDFS. Of course, KDFS is
community institution and people preferences are more important. We have no
second thought on it. But there is nothing wrong in expecting locations to
maintain decent cash flow and understand our situation at times.
Please
don’t think that I’m sharing all KDFS issues here. As I stated earlier, KDFS is
serving as mirror. These issues are observed only with the interface in-between
KDFS and locations. In similar line, locations have several interfaces with
various institutions, both internal and external. If basic insensitivity is
observed at locations, it will reflect in issues with all sort of
interventions. The greatest service to community is not performing outstanding
magic or miracle. But it is to ensure minimum basic services with conscious
mind. To attain, we need to build positive, healthy and responsive interface
mechanisms with interface sensitivity. Fire is burning not to hurt but to
purify!
Wind:
I
asked the wind,
“Why
are you invisible?”
It
replied,
“Performing
doesn’t need identity!”
Few
months back, on a late evening I went to temple with my family. While returning
back from temple, my 3 year old daughter asked me to purchase her few balloons,
which is sold near the temple premises. I refused her as carrying these
balloons in my two wheeler in the city traffic would be difficult. But she is
adamant, started to cry to get the balloons. With lot of hesitation I purchased
three balloons and given to her, she became very happy, as if she is at heaven.
I
drive little hard to reach home by keeping the floating balloons safe. As soon
as I reached home, she blasted one balloon. I got angry. Scolded and beat her.
She was little shocked and started crying. Then for about an hour she has not
come near to me, I also not cared about her, I was involved in other
activities. Even after one hour, she has not stopped crying, I thought I should
calm her. So I asked, “Why are you still crying?” She replied with sad tone
that, “Dad, Balloon has broken, it will be painful to balloon, can you please
apply medicine to the broken balloon and make it sleep?” I was melted by the
innocent answer. I felt shame about myself. I realized that my ego killed my
consciousness. With that child’s answer I could sense my fault. I took her to
my shoulders and said my sorry to her.
