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Microwatch a Quarterly Update on Microfinance OUTREACH in Pakistan

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Microwatch a Quarterly Update on Microfinance OUTREACH in Pakistan MicroWATCH A quarterly update on microfinance OUTREACH in Pakistan ISSUE 8: QUARTER 2 (Apr - jun 2008) rowth picked up slightly as the sector's Microcredit Micro-Savings Micro-Insurance G outreach grew by ten percent compared to the eight percent growth of the previous Active Value Active Value Policy Sum Insured Borrowers (PKR Millions) Savers (PKR Millions) Holders (PKR Millions) quarter. In absolute terms, the net increase in active borrowers was the highest during these 2008-Q1 1,591,126 16,527 1,715,612 4,208 1,368,807 12,419 three months compared to each quarter over 2008-Q2 1,754,118 19,648 1,732,950 4,692 1,576,381 15,183 the past year. National Rural Support Programme (NRSP) continued to be the Increase (Net) 162,992 3,121 17,338 484 207,574 2,764 biggest contributor to this expansion, followed by Khushhali Bank (KB) and First Increase (%) 10% 19% 1% 12% 15% 22% MicroFinanceBank Ltd. (FMFB). Some of the fast growing microfinance providers (MFPs) of 2007, such as Kashf, Active Borrowers by Peer Group seem to be in the process of consolidation and did not post any significant 1,800 1% 5% growth during the quarter. 1,600 1% 1% 5%5% ) 1% s 1,400 5% Rural Support Programmes (RSPs) continued to be the largest peer ’ 0 5% 39% 0 0 1,200 39% ( group (for definitions of peer groups please see the back cover) in 36% CFI s r 1,000 34% terms of active borrowers and their share has grown consistently over e NGO w o r 800 23% RSP the past year. Given NRSP's expansion and its dominance in its peer r o 24% 25% 24% B 600 MFI group, coupled with the relative slowdown in the growth of other large e v i MFB t 400 MFPs, this is not surprising. c A 32% 200 36% 33% 31% For the first time, Bahawalpur has emerged as the most active 0 2007-Q3 2007-Q4 2008-Q1 2008-Q2 microfinance market with the highest penetration rate of all districts, Quarter overtaking Lahore. This again can be attributed to NRSP which is very active in the district. No significant change was seen in most other Active Savers by Peer Group parameters of the microcredit portfolio: group lending remained 1,800 0% dominant, the male-female ratio favored male borrowers slightly 0% 0% 6% 1,600 whereas the rural borrowers outnumbered urban borrowers by a small 1,400 margin as well. The MFIs share in GLP declined whereas the RSPs CFI ) 1,200 s ’ NGO and MFBs gained share of the market. 0 0 1,000 0 82% 87% ( RSP s 800 r In terms of savings, very little growth was seen in the number of active e MFI v 600 a MFB S savers but the value of savings posted a decent growth of 12 percent. 400 e v i Although the total savings of NGOs and RSPs declined, an addition of t 200 2% 2% c 11% A 10% Rs. 500 million to FMFB's value of savings resulted in an overall 0 2008-Q1 2008-Q2 increase in the sector's total savings. Peer-group wise RSPs held the Quarter largest market share in terms of active savers whereas microfinance banks (MFBs) clearly dominate in terms of their share in the sector's Policy Holders by Peer Group total savings. 1,800 Of the three microfinance services, outreach of micro-insurance grew 1,600 1% ) 3% s 1% ’ 1,400 the fastest in this quarter. However, unlike the growth of active 0 0 3% CFI 0 33% ( 1,200 borrowers which shows the number of new clients reached, the growth s 30% NGO r 1,000 e d RSP in micro-insurance mostly stems from the MFPs' providing this product l o 800 H 43% to their existing clients. Kashf and NRSP together accounted for 70 MFI y 600 49% c i l MFB percent of the policy holders, and their shares remained over 90 o 400 P 200 percent within their respective peer groups. The share of male policy 17% 20% holders increased by four percent although overall the total number of 0 2008-Q1 2008-Q2 female policy holders remained higher. Quarter Department for DFID International Pakistan Micr finance Network Development Licenced under Section 42 of Companies Ordinance 1984 MicroWATCH is a publication of the Pakistan Microfinance Network (PMN). It was made possible by the generous support from the Department for International Development (UK) and the Citi Foundation. This is also the result of the efforts of organizations that contributed their data (for citations, see back cover). 02 Distribution of Active Borrowers CHITRAL GILGIT AGENCY UPPER DIR KOHISTAN LOWER DIR SWAT BATGRAM A DAGGAR MALAKAND MANSEHRA KASHMIR CHARSADDA MARDAN (DISPUTED TERRITORY) SWABI ABBOTTABAD NOWSHERAHARIPUR PEST HAWAR ISLAMABAD ATTOCK A HANGUKOHAT RAWALPINDI BANNU KARAK CHAKWAL JHELUM LAKKI MARWAT MIANWALI GUJRAT MANDI SIALKOT F TANK BAHAUDDIN NAROWAL KHUSHAB GUJRANWALA DERA SARGODHA HAFIZABAD ISMAIL KHAN SHEKHUPURA BHAKKAR LAHORE NANKHANA SAHIB ZHOB JHANG FAISALABAD MUSAKHEL LEYYAH TOBA TEK SINGH QILA ABDULLAH QILA SAIFULLAH KASUR PISHIN SAHIWAL OKARA ZIARAT QUETTA LORALAI KHANEWAL PAKPATTAN DERA GHAZI KHAN VIHARI KOHLU MULTAN BARKHAN MUZAFFARGARH MASTUNG SIBI LODHRAN BAHAWALNAGAR NUSHKI BOLAN CHAGAI RAJANPUR KALAT BAHAWALPUR JHAL MAGSI DERA BUGTI NASIRABAD KHARAN JACOBABAD RAHIMYAR KHAN JAFARABAD SHIKARPUR GHOTKI Iran KHUZDAR LARKANA SUKKUR KHAIRPUR PANJGUR NAUSHAHRO FEROZE Legend AWARAN DADU NAWABSHAH India Scale Active Borrowers KECH LASBELA SANGHAR N/A GWADAR HYDERABAD UMER KOT 1 - 10,000 MIRPUR KHAS KARACHI 10,001 - 25,000 BADIN THARPARKER THATTA 25,001 - 50,000 50,001 - 100,000 >100,000 * Geographical boundaries for new districts demarcated in 2004-06 have not been made available by Survey of Pakistan. The following districts are therefore, not shown on the map: Sehwan Sharif, Jamshoro (Dadu); Matyari, Tando Allahyar, Tando Muhammad Khan (Hyderabad); Shedadkot (Larkana); Mingora (Swat); Sherani (Zhob) MicroWATCH MARKET HIGHLIGHTS (APR 1, 2008 – JUN 30, 2008) MICROCREDIT A. Top 5 MFPs: Increase in Active Borrowers (Net) B. Top 5 MFPs: Increase in Active Borrowers (%) NRSP BRAC KB FMFBL P P F F FMFBL TMFB M M TMFB NRDP KASHF NRSP 0 10 20 30 40 50 60 70 80 90 0 50 100 150 200 250 Increase (000’s) Increase (%) C. Largest Providers of Microcredit (Active Borrowers) D. MFPs with Largest Geographic Spread MFP Active Borrowers Market Share MFP Geographic Spread (30-Jun) (% of Active Borrowers) (No. of Districts) 1 NRSP 575,740 32.8 1 KB 89 2 KB 359,314 20.5 2 NRSP 50 3 Kashf 318,501 18.2 3 FMFBL 45 4 FMFBL 155,154 8.8 4 Kashf 24 5 PRSP 75,230 4.3 5 PRSP 20 E. Districts with Highest Growth (Net) Active Potential Microfinance Penetration Growth Province District Borrowers Market Rate (1 Apr to 30 Jun) (30-Jun) (2007) (%) A Net % B (A/B)*100 1 Jafarabad 2,408 1,290 115.4 121,911 1.98% 2 Balochistan Nasirabad 2,063 1,210 141.9 75,783 2.72% 3 Gwadar 2,102 249 13.4 55,537 3.78% 1 Nowshera 18,337 9,341 103.8 201,208 9.11% 2 N.W.F.P Mardan 40,979 3,606 9.6 354,988 11.54% 3 Charsadda 13,298 1,463 12.4 271,736 4.89% 1 Bahawalpur 97,052 14,639 17.8 461,777 21.02% 2 Punjab Multan 69,753 12,695 22.2 689,339 10.12% 3 Rahimyar Khan 36,841 7,743 26.6 585,705 6.29% 1 Larkana 16,015 10,515 191.2 534,891 2.99% 2 Sindh Karachi 95,640 5,612 6.2 1,329,990 7.19% 3 Badin 10,185 5,105 100.5 294,781 3.46% 1 Bhimber 1,341 529 65.1 - - 2 AJK Kotli 5,313 484 10.0 - - 3 Neelum 1,395 387 38.4 - - 1 Ghizer 5,605 594 11.9 - - 2 FANA Skardu 6,047 552 10.0 - - 3 Ghanche 2,873 374 15.0 - - 1 Kurram 944 245 35.1 - - 2 FATA Mohmand 295 166 128.7 - - 3 Bajaur 221 145 190.8 - - 1 ICT Islamabad 4,156 312 8.1 74,750 5.56% 03 MARKET HIGHLIGHTS (ARP 1, 2008 – JUN 30, 2008) MICRO-SAVINGS A. Top 5 MFPs: Increase in Active Savers (Net) B. Top 5 MFPs: Increase in Value of Savings (Net) NRSP FMFBL FMFBL NMFB P P F TMFB F RMFB M M NMFB TRDP ASASAH ASASAH - 20 40 60 80 100 120 0 200 400 600 Increase (000’s) Value (PKR Millions) C. Largest Providers of Micro-Savings (Active Savers) D. Districts with Highest Outreach (Active Savers) Active Savers Market Share Active Savers Increase MFP District (30-Jun) (% of Active Savers) (30-Jun) (1 Apr - 30 Jun) Net % 1 NRSP 943,542 54.4 1 Tharparkar 119,630 1,526 1.3 2 PRSP 333,714 19.3 2 Bahawalpur 105,419 18,043 20.6 3 TRDP 216,182 12.5 3 Karachi 68,014 8,106 13.5 4 FMFBL 114,222 6.6 4 Bhawalnagar 49,655 6,908 16.2 5 TMFB 67,528 3.9 5 Badin 45,734 117 0.3 MICRO-INSURANCE A. Largest Providers of Micro-Insurance (Policy Holders) B. Districts with Highest Outreach (Policy Holders) Policy Holders Market Share Policy Holders Increase MFP District (30-Jun) (% of Policy Holders) (30-Jun) (1-Apr to 30-Jun) Net % 1 Kashf 621,658 39.4 1 Lahore 210,879 6,506 3.2 2 NRSP 481,642 30.6 2 Karachi 94,337 489 0.5 3 FMFBL 155,154 9.8 3 Faisalabad 92,844 -1,907 -2.0 4 KB 129,540 8.2 4 Bahawalpur 82,340 14,872 22.0 5 TRDP 41,748 2.6 5 Gujranwala 73,710 2,364 3.3 04 MicroWATCH SUMMARY OF MICROCREDIT PROVISION (All Pakistan) Exchange Rate (Jun 2008): PKR/USD = 68.8/1 Indicator Total Lending Methodology Peer Group Group Individual MFB MFI RSP NGO CFI Number of Branches/Units 2008-Q1 1,424 - - 285 222 797 103 17 2008-Q2 1,515 - - 326 237 830 105 17 Active Borrowers 2008-Q1 1,591,126 1,499,361 91,765 489,499 386,351 621,054 75,932 18,290 2008-Q2 1,754,118 1,636,488 117,630 566,343 396,526 691,389 79,850 20,010 Gross Loan Portfolio (PKR Millions) 2008-Q1 16,527 15,032 1,495 5,030 3,450 6,851 891 306 2008-Q2 19,648 17,665 1,983 6,185 3,597 8,552 997 318 Average Loan Balance (PKR) 2008-Q1 10,387 10,026 16,288 10,276 8,929 11,031 11,728 16,719 2008-Q2 11,201 10,794 16,860 10,921 9,072 12,369 12,481 15,866 Number of Loans Disbursed 2008-Q1 399,511 374,383 25,128 136,057 127,602 114,404 17,375 4,073 2008-Q2 705,199 669,428 35,771 206,874 147,319 327,684 19,826 3,496 Disbursements (PKR Millions) 2008-Q1 5,444 4,850 593 1,943 1,546
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