EDA Training

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EDA Training

• the journey so far
• 9 February 2009
• Ragini Bajaj Chaudhary

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Training at a glance

• gt200 trainings delivered
• gt3,500 participants
• In India, Afghanistan, Bangladesh, Cambodia, East
  Timor, Ethiopia, Myanmar, Nepal, Pakistan, Sierra
  Leone and Sri Lanka
• For MFIs, networks, donors and wholesale lenders

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Number of offerings
4
Courses...
Popular Trainings
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Clients
EDA Clients
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Training Modules

• CGAP (1999 -2003)
• DQIR
• Financial Analysis
• Operational Risk Management
• Product Development
• Business Planning
• Information Systems
• Im-PACT
• Social performance Management
• WWB- Citigroup
• Management development programme

• EDA (2001 till date)
• Principles of Microfinance
• Credit Appraisal
• Perspective building in mf
• Management Information systems
• Internal Audit
• Risk Management
• A series of Micro- enterprise related courses
• All CGAP courses contextualised
• SPM integrated in all courses

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Changing context evolving sector

• THEN
• Arrears Rate
• Bad debt write off
• Subsidised interest rate
• Development package
• Slow and steady
• Society/Trust
• Profit Taboo
• Grant

• NOW
• PAR
• Loan Loss Reserve
• Sustainable interest rates
• Stand alone
• Fast paced
• NBFC, Section 25 Co.
• Profit desired
• Commercial loans

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Main messages

• THEN
• MFI responsible for portfolio quality
• Zero PAR ideal
• Interest charged should cover all costs
• Yield should be compared with APR

• NOW
• MFI responsible for client protection
• Zero PAR comes with a cost.
• Do not pass on your inefficiencies to the
  borrower
• APR should be communicated to the client

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Main messages contd

• THEN
• Efficient processes reduce costs and risks for
  the MFI.
• Financial performance needs to managed and
  reported.
• Financial sustainability is an end in itself.

• NOW
• Process efficiencies not at the cost of
  transferring risk to the client.
• Financial as well as social performance needs to
  be managed and reported.
• Financial sustainability is a means to an end.

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Evolving sector reflected in training demand

• Increased commercial lending in the mf sector
  since 2005
• Increase in professional staff in mf and improved
  MIS on tracking of overdues
• Financial analysis continues to be most useful
  skill for mf professionals
• Increased risks, interest of diverse investors
  and revived interest in improving mf practice

• Credit appraisal for MFIs no demand since 2006
• Accounting and DQ/IR has also come down
• FA consistent
• Increasing for Risk Management, Strategic
  Business Planning and SPM

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Challenges

• Fast growing
• Geographical spread
• Language
• Subsidy driven
• High attrition of MFI staff

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Next Steps.

• Online certificate course
• Introduce courses on HR, OD
• Publish practical DIY tools derived from research
  and ratings experience
• Expand repertoire of courses on SPM practice

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• We look forward to continuing this journey
• enhancing skills for ten more years and beyond!

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• Encouragement from our clients

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