ANNUAL REPORT

21

ASA

ANNUAL REPORT
21

VISION
The vision of ASA is to establish a poverty free society

MISSION
The institutional mission of ASA is to support and strengthen the economy at the bottom of the socio-economic pyramid by facilitating access to financial services for the poor, marginalized and disadvantaged

PRESIDENT'S NOTE

he year 2010 was a landmark for ASA as it marked 20 years of specialized microfinance program. In 1991 we had initiated a specialized model in microfinance which was different from

addition, we had to digest countrywide political and social unrests and confrontations. Lastly, climate change fallout and prolonged world economic meltdown landed on our way. Indeed these odds hindered the pace of going ahead of ASA but couldn't create big hurdles due to our solid commitment and integration. We always remain unbending and firmly determined to achieve the goal. This attitude has helped us to attain a grand success in the long run. ASA became the budding MFI worldwide for its unique and sustainable microfinance model. The organization could be able to lift up its flag of honour and secured one of the leading positions among the MFIs of the world.

the conventional microcredit models. There was a huge challenge for us to make the model familiar to the clientele. We had to face strident criticism and tough competition from various corners. In spite of that we could pass through a two-decade journey towards our goal successfully. When crossing this long way we had to confront many natural calamities and bizarre situations like floods, draughts and cyclones that created a lot of hazards. In

In 2010, we could reach about six million people and loan outstanding stood at 37,525 million. This is a remarkable progress compared to the previous years. ASA has also expanded its canopy to the health, sanitation, scholarship and solar power programs this year. Scholarships for the meritorious students of the poor family, arranging eye camp in the backward areas of the country have been introduced.

friendly solar products and housing. More than one hundred ASA branches have been brought under solar power system during the year.

2010 is a mentionable period also for the ASA University Bangladesh which touched 5,000

students' enrollment. The university has started three new courses in honours level during this year also.

The ASA health centre has been opened for public at Habiganj about 150 kilometers away from the capital city, Dhaka. This health centre provides treatment and other health related services to the local inhabitants. The centre has drawn attention of the people by providing medical services. Steps have been taken for establishing such type of health centers in the different parts of the country gradually. ASA's associate organization Hope for the Poorest (HP) has been formed for taking care of these philanthropic activities.

organization

has

become

more

internationalized. Many countries from the different parts of the world invited our expertise to provide technical assistance for replicating ASA's innovative model. A number of ASA officials and microfinance experts visited those countries for providing technical services during the corresponding year. We have also witnessed a surge of foreign visitors in our organization this year. We feel encouraged and inspired by all the positive trends that embraced ASA in 2010.

I take this opportunity to convey my thanks to the ASA's another sister concern Green Housing and Energy Limited (GHEL) also made a remarkable success in 2010 in popularizing environmental staff, officials, members and well wishers for their all out support and contribution for achieving this distinction for all of us.

Md. Shafiqual Haque Choudhury President, ASA

INTERPRETATION
OF THE

LOGO
OF

ASA

The logo of ASA contains two human hands at the bottom, the shining sun in the middle and the circle of the horizon on the top. The sun in the logo symbolizes the source of all energy or resources, the two hands are the hands of the struggling poor people and the circle at the top is the horizon of the eternal blue sky. The logo therefore reflects the meaning that poor people are capable to grip the source of energy or resources through widening their knowledge and reach up to the horizon with the institutional support of ASA.

CONTENTS
Overview Landmarks Accolades ASA the Sustainable MFI Services Loan Products at a glance Savings Products Savings at a glance Insurance Staff and Family Welfare Fund Grassroots Activities in frames Agri-business Development Project Hope for the Poorest(HP) Governing Body Organogram Management Team Annual General Meeting Partnership Program Green Housing & Energy Limited ASA in the Media Publications Financial Analysis Financial Statistics ASA at a Glance Exposure & Internship Techincal Assistance ASA University Bangladesh ASA Across the Country ASA Coverage Plan for 2010 05 08 10 11 13 16 17 18 19 21 22 24 25 28 29 30 31 32 33 36 37 38 41 43 44 47 49 51 54 55

OVERVIEW
The philosophy of ASA is to create a just society where people of all tiers would get opportunity to translate their potentials for acquiring wealth and amenities for better living. ASA believes that all people have the right to live a standard life where all fundamental needs can be met, where the poor and the underprivileged would not be abandoned and neglected. They would enjoy the facilities and affiliations offered by the state and the society. Poor would not feel isolated or segregated from the advanced and privileged segment of the society. Keeping the vision in mind, ASA has been making relentless efforts to tear the bond of poverty that has shattered billions of lives of the world. Since inception in late seventies ASA has been offering various services including microcredit, entrepreneurships, health, education, scholarship, disasters aids, housing, agricultures, sanitation, solar energy and so on for the betterment of the mass people. At present, the organization is rendering comprehensive services to more than 72,000 villages, slums and urban areas of Bangladesh. About 6 million people of the country are now under the canopy of ASA. The organization has created job opportunity for thousands of people through its versatile activities and programs. From microfinance to solar energy, health to disaster aids, agriculture to housing ASA contributes in all necessary fields for the benefit of the common people. ASA has brought several transitions in its programs to cope with the demand of time and situation. ASA always cherishes a generous and forward looking outlook to adopt new strategies in its programs and activities since its inception. In the first decade, ASA dedicated its activities to organize poor and underprivileged of rural areas of Bangladesh making them aware about their rights. If poor people could organize themselves then asserting rights would be easier in the society and the state. ASA conducted the programs in voluntary approach. ASA had successfully motivated a large number poor and organized them for agriculture, fisheries, business, health, sanitation activities in a cooperative basis. In spite of a laudable success those programs could not sustain over decades due to multifaceted constraints and opposition from the establishment and the vested interest. In the late eighties, ASA has initiated microcredit program for the flood affected people as pilot basis. In 1991, ASA introduced an exclusive model of microfinance with some unique features from the conventional ones. The model has compliant with friendly rules and requirements of the clients. ASA banks on optimum use of resources pursuing easy and simple methodology to direct microcredit program. For its distinctive and pragmatic characteristics the ASA microfinance model could draw attention and win the confidence of clients and stakeholders within a very short time. Comparatively in a short span of time, ASA's innovative model has achieved unprecedented success in the sector and drawn huge attention from the international community. Within a decade the model reached to the crest of success through rendering outreach to millions of people of the country. ASA model has received a series of accolades from the renowned institutions for its sustainability and efficiency to combat poverty in the world. In 2007, USA based prestigious magazine Forbes has adjudicated ASA as top MFI of the world. The Financial Times, London and International Finance Corporation (IFC) jointly decorated ASA

with "Banking at the bottom of the pyramid" award in 2008. Presently, the organization renders its various services to about six million people through 3,194 branches in 64 districts of the country. The borrowers are provided with different types of loans for investment in their Income Generating Activities (IGAs). More than 70% clients of ASA are women and the organization is playing a vital role in women empowerment through engaging these women in different IGAs. A substantial number of small loan borrowers are gradually migrated to small business loan or small entrepreneur loan considering their capacity and successes of the previous loans. ASA also directs savings and mini life insurance programs for the clients as further support. ASA also assists other local small MFIs in implementing microfinance programs by providing them with technical services and soft loans. At present, ASA is providing this service to more than 22 NGO/MFIs in Bangladesh. ASA partners organizations are providing microfinance services to more than 63,372 clients with outstanding Tk. 459 million.

ASA Health Service

ASA has launched a health complex which is composed of necessary and emergency medical equipments and facilities at Chunarughat in Habiganj district about 150 kilometers away from the capital, Dhaka to provide quality health service to the rural people in 2010. For the very first year the Health Centre has drawn huge attention of local inhabitants delivering medical services. Initiatives have been taken to set up more centers in different backward regions of the country step by step.

Hope for the Poorest (HP)

ASA has established an associate organization 'Hope for the Poorest (HP)' for the welfare of extreme poor and the underprivileged people of the backward regions of the country. HP is a charitable organization. The main objectives of HP are taking special programs which yield useful services to the target groups. In 2010 the organization has organized a number of eye camps to treat eye diseases in the south, east and north regions of Bangladesh. Thousands of poor eye patients have received treatment including free operation from these camps for their various types of eye diseases. HP has initiated a scholarship program for poor and meritorious students this year. A remarkable number of students from the seven districts of the country who have scored good result in primary final examination in 2009 have got scholarship from HP . The program will be extended throughout the country gradually. Besides, a sanitation program has been run by HP in districts.

Going beyond border

Since 1993, ASA has been providing Technical Assistance (TA), to the NGO/MFIs of different countries as a mentor organization and microfinance consultant. The organization already provided many NGOs/MFIs of 30 countries across the globe with technical assistance as the MFIs are keen to replicate ASA's sustainable microcredit model. A considerable number of visitors and trainees from foreign countries visit to ASA every year with a view to acquiring knowledge about its exclusive way of microfinance. ASA has already provided Technical Assistance (TA) to the Philippines, Laos, Cambodia,

Tajikistan, Jordan, Ethiopia, Myanmar, Afghanistan, Peru, Indonesia, Yemen, India, Pakistan, Sri Lanka, Nigeria and Ghana. Senior Officials and microfinance experts of ASA are staying in India, Pakistan, Sri Lanka, Afghanistan, the Philippines, Nigeria, Cambodia, Ghana for the rapid expansion of microfinance in these countries presently.

ASA University
ASA University Bangladesh was established in 2007 with a view to creating better opportunity for quality higher education for the students of lower middle class and poor families. ASA University has been working hard to meet its goal since its beginning. The University has developed its curriculum in combination with the local cultural heritage and western modern education to mould up the young learners to face the challenges of the new century. About 5,000 students are getting higher education in various disciplines at graduate and post-graduate level from the institution presently.

Green Housing & Energy Limited (GHEL) Agri-business

ASA has started Agri-business program to promote the entrepreneurs involved in agro based or agriculture related business providing loan and technical assistance in collaboration with Asian Development Bank (ADB) and Bangladesh Government in 2007. The main objectives of the program are to increase agro products and to expand marketing, processing and transportation of agriculture products in rural areas. One of the important goals of the program is to encourage women entrepreneurs and prioritise them in providing loan. Thirty per cent small entrepreneurs are women. Under the project 19,972 entrepreneurs have been provided during 2010 with Tk. 912.83 million loan oustanding. ASA has established a subsidiary organization named Green Housing & Energy Limited (GHEL). The main objectives of the company are promoting solar power and building eco-friendly houses in the rural and semiurban areas in the country. For that GHEL starts marketing of solar driven products and houses to the common people. In 2010, fifty branches of ASA have been installed with solar power to run the daily activities where electricity was not available.

Remittance Service
ASA has started foreign remittance with National Bank Ltd. jointly since July 2008 with a view to facilitating increased remittance inflow through banking channel to Bangladesh. More than 700 branches have been brought under remittance service until December 2010.

LANDMARKS
Foundation Phase (1978-1984)
Conscience building for social action Legal aid and awareness build-up program Training for the members and the local journalists

1993
Small Savings was introduced for the clients to offer them opportunity to save in a very small scale so that they could use this money in their hardship days. ASA started providing Technical Assistance (TA) internationally the ASA so that other and interested Sustainable organizations of different countries can replicate Cost-effective Microfinance Model to assist the poor worldwide.

Reformative Phase (1985-1991)

Health, Education and Women's development program Post-disaster management program Mini-irrigation program Credit program for income generation

1994
Financial products specialization phase (1992- Till Date)
Specialization in Microfinance (credit, savings, insurance, etc.) and time to time modification to meet demand of the valued customers home and abroad Taking premium for Loan Insurance was introduced to shield the inheritors from sudden risk that is paying the outstanding if a client dies.

1995
Flood is a common natural calamity in Bangladesh that damages lives and livelihoods at a large scale almost every year. Considering this frequent flood,

1992
ASA set off Small Loan, Power Pump Loan and Housing Loan for the clients as the first initiative of being specialized in Microfinance. These credit programs were initiated under the strong demand of the clients.

interest free rehabilitation loan was launched to assist the victims to fight this curse.

1996
Loan against Savings was allowed.

1997
Small Business Loan and Voluntary Savings were introduced for the clients.

OTHERS
2002 & 2006
ASA Staff and Family Welfare Fund

2001
ASA declared itself as a completely donation free organization.

2003
Small Entrepreneur Lending (SEL) was introduced for the small entrepreneurs. Hardcore Poor Loan was introduced for the poor who were not eligible for small loan. Mini Life Insurance (Female) was introduced to cover up the poor with insurance.

2003
ASA Insurance for Staff

2005
Medical Assistance for the members

2004
Education Loan was introduced for the member's kids who are studying in different educational institutions at various levels. Business Development Loan was for only the clients who faced unexpected situations/damage (flood, fire, theft, etc.) in their business and livelihoods. Mini Life Insurance (Male) was introduced to cover husband/guardians of the clients.

Assistance for other NGO/MFIs

1995 : Providing Fund for Partner NGO/MFIs 2001 : Channeling Fund/Soft Loan for other NGO/MFIs

Associated Organization
2006 : ASA University Bangladesh (ASAUB) 2009 : Green Housing & Energy Limited (GHEL) 2010 : Hope for the Poorest (HP)

2005
Small Loan (Male) was introduced to help the male members of clients to run different projects. Monga (Scarcity) Loan was also introduced for the monga affected areas. Short Term Loan was given to meet clients' urgent need for the time being. Long Term Savings (LTS) was introduced to meet clients' need of depositing money for longer period.

2006
Information Technology Loan was introduced to help the clients to have access to the modern technology.

2007

Agri-business Loan was introduced to promote all kinds of agro-related business and assist the small cultivators for cropping.

2008
ASA introduced remittance services.

2009
Introduced CNG Auto rickshaw and Power Tiller Loan.

ACCOLADES
1992
Microfinance as the Specialized Program

1993
Providing TA Internationally

1994
Obtained Financial Self- Sufficiency (FSS)

1998
Selected International Service Provider (ITSP) by UNDP

2001
ASA declared itself as donor free Institution

2002
Selected as the Best TA Provider Globally (By UNDP)

2005
ASA has been placed in all the six categories with exceptionally best results in the MIX report titled "2005 MIX Global 100: MFI League Table" Presented in the MCS 2006, Canada

2007
Selected as the top MFI of the world by the Forbes magazine, USA

2008
ASA awarded with the "Banking at the Bottom of the Pyramid" by the Financial Times, London, UK and International Finance Corporation (IFC) jointly

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ASA

THE SUSTAINABLE MFI

ASA has achieved sustainability within a couple of years from the starting of microfinance program. The innovative policies of the management and cost effective attitude regarding all aspects were the key elements to make it possible within the shortest possible time. Besides, strong determination of the management was also an important factor for attaining self-sufficiency maintaining steady growth. There are some specific reasons behind this success. These are mentioned bellow. Key features of ASA's innovative management and factors behind success in its overall activities are noted below:

Dynamic and forward-looking leadership Self-explanatory written working manual Decentralization and delegation of authority to the branch level officials Participatory process in decision making Specialization in microfinance and rapid expansion policy Costless and faster recruitment procedure On-the-job training approach (Each one teach one methodology) Simple and cost-effective branch structure without a professional accountant Simple and least hierarchical organization Easy and close communication among officials as well as between officials and clients Always strong monitoring and supervision from all levels Simple and transparent accounting and recordkeeping system based on format Opportunity for sharing problems in the residential office Low-cost culture practiced from top to bottom

Effective fund management Members' group transfer among the Loan Officers after every six months Diversified loan products to meet clients' demand Simple and shorter loan processing No collateral for providing loans Loan disbursement within 07 (seven) days of the membership Savings ( short and long term based) and Mini Life Insurance for the clients No group guarantee required for providing loan No bindings of being present in the group meeting Education loan for members' children Male loan for members' husband/guardian Opportunity to withdraw savings at any time Special loan for the natural disaster affected areas Health assistance to the clients without taking premiums

11

ASA Sustainable and Cost-effective Microfinance Model This special cost-effective method of ASA helps a new branch to earn an adequate income to be self-reliant within 12 months from the day one.

Self-sufficiency of a Branch: Key Factors

Staff members are selected within a short time and given short, practical training The branch office structure is standardized and furnished with minimal facilities and simple furniture Branch expenditure is standardized and cost ceilings have been set A high number of borrowers, high portfolio per Loan Officer and high fund-revolving rate minimize total fund requirement Simple and standardized accounting procedures No office assistant, technical support or security guard

Features Safeguarding Sustainability

Borrowers are monitored and scrutinized by the Branch Manager Staff members provide ASA with a security deposit (earn interest) Joint signature required for withdrawal from branch's bank account Limited daily withdrawal allowed Cheques are preserved by different Loan Officers Cash book is maintained by Loan Officers on a revolving basis Loan Officers switch groups after every six months District Managers are based in the field Central Office staff visit field regularly Regular internal audit Annual external audit Occasional and surprise branch visits by the President of the organization

Automation
IT department of ASA has implemented central server based management reporting in the year 2010, which was a milestone for ASA Microfinance Management System (AMMS) project implementation. Branches record their day to day transactions into offline AMMS located into branch, at the end of each month branch data is uploaded to central server allowing management to produce monthly reports and monitor branch activities from central office without visiting a particular branch. District wise reports are also available from central server allowing management to perform comparative study among all districts of the country. Moreover district managers no longer need to produce a monthly report manualy which will be a great time saver for the district managers.

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SERVICES
ASA offers various types of credits, savings, insurance and loan security products to its members in the rural as well as urban areas. About 5.5 million households are enjoying ASA's cost effective flexible financial services for decades. Borrowers of ASA invest the loan money in different Income Generating Activities (IGAs) run by themselves. They repay the loan installments from a portion of profit. A small part of the profit is also used to buy necessary things for the family. After the payment of the installments they get opportunity to use the profit for themselves. A large number of them are becoming selfreliant gradually through the income generation activities (IGAs). Employment opportunities are also created for the extreme poor through these projects.

Credit Program
A group consists of 15-30 members generally, with an average number of 20 in each group. ASA provides collateral free loans to its members. There is no group liability in ASA's credit programs that is the respective individual, not the group, is responsible for delinquency. Members have to wait for only 7 days after their registration to get the first loan. Commonly, weekly or monthly installment process is followed for repayment and the first installment is given in the 2nd week of the loan. The service charge is calculated flat on the principal of the loan.

Small Loan
Generally the poor women are given this loan to run different Income Generating Activities (IGAs). Women members of Union level are provided up to Tk 10,000; Upazila/Thana Sadar Tk 15,000; District or Divisional Sadar Tk 20,000 as the initial loan. Average up to Tk. 3,500 is allowed as yearly increase.

Small Business Loan Program

This is for the small businessmen or traders who are willing to start a small business or already have the same but can't run for lack of necessary fund. Graduated women members who already have proved themselves successful in business are also eligible to get this loan. The initial loan ceiling for this program is from Tk. 20,000 to Tk. 50,000. The subsequent increase is Tk. 6,500.

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Small Entrepreneur Lending (SEL)

This program is for the small entrepreneurs. SEL offers a bigger amount, from Tk. 50,000 to Tk. 7,00,000 (Seven hundred thousand) to the small entrepreneurs. The main objective of this program is to help the entrepreneurs so that they can expand their own business and also create jobs for the extreme poor. Duration of this loan is 1 year, 1.5 year and 2 years. The borrowers under this program make

repayment of their loans through cheques. This system is more flexible and has brought a new dimension in the existing programs of ASA. There were 134,773 clients under the SEL program of ASA at the end of 2010. The total loan disbursed through this was Tk. 36,065 million, with Tk. 29,278 million realized and Tk. 6,787 million outstanding. The recovery rate was 99.26%.

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Education Loan
Children of the poor families generally fall in a severe problem at the time of paying their admission, examination and other fees. It is also found that some poor students cannot sit for the final examination as they fail to submit the required fees. ASA has come forward to save these students and introduced this program for the children of the group members. It is designed with a view to helping the group members in continuing their children's education. The highest loan size is Tk. 5,000 with 15% service charge and it is especially provided for meeting their admission and examination fees. In 2010 Tk. 21 million was distributed among 6,269 members' children as education loan and on December 31, 2010 the outstanding amount of this program was Tk. 12 million. The recovery rate was 99.97% in this program.

Disasters Rehabilitation Program

Members, specially affected by heavy flood, cyclone and other natural disasters are allowed to get this interest-free and long-term based loan. ASA also provides these people with free medicine to save them from the harmful effect of flood.

Agri-Business Loan
Bangladesh is an agricultural country and more than 70 per cent population of the country lives on it. The organization has taken different types of programs for developing the agricultural sector as well as the cultivators from the very beginning. ASA has launched this product, along with Government of Bangladesh, to introduce further development in this sector in 2006. Duration of this loan is 6 months to 3 years and the highest range is TK. 3,50,000. There were 19,972 clients under this program at the end of 2010. The total loan disbursed through this was Tk. 1,490 million, with Tk. 1,204 million realized and Tk 913 million outstanding. The recovery rate was 99.56%. 15

LOAN PRODUCTS
(at a glance)
Small Business 10-15 SEL Individual Weekly/Monthly 15% Weekly/Monthly Tk.25/Tk.95 No meeting 15% Depend on duration SL Description 1 Group Size Small 15-30 Rehabilitation Education Group members children N/A 15% Tk.25 2 Meeting Provision 3 Service charge (flat rate) 4 Realizable installment system for Tk.1,000 loan 5 Realizable number of Weekly/Monthly installment 6 1st installment starts from disbursement date 7 Loan Risk Premium Weekly 15% Weekly Tk.25 N/A Free Weekly Tk.20

46/Weekly

46/Weekly

12/18/24 Monthly

Flexible

46/Weekly

After 15 days

After 15 days

After 1 Month

Flexible

After 15 days

Tk.10 Per thousand

Tk.5/Tk.10 Per thousand

Post dated cheque & promissory note on non-judicial stamp N/A

N/A

N/A

8 Provision against risk premium, for death clients or husband guardian 9 1st loan cycle 10 Loan increase provision from 2nd cycle on wards 11 Loan duration 12 Cost of Passbook, Loan Application and appraisal fees

Outstanding loan written-off

Outstanding loan written-off

N/A

N/A

Tk.4,000Tk.20,000 Highest Tk.3,500

Tk.20,000Tk.50,000 Average Tk.6,500

Tk.50,000Tk.700,000 Depend on feasibility

N/A

Maximum Tk.5,000 N/A

One year Free of cost

One year Free of cost

Highest 2 years Only appraisal fee 0.2% (Tk.2/ Tk.1,000)

Free of cost

One year Free of cost

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SAVINGS
PRODUCTS
ASA considers saving as an important component for microfinance program. Because microcredit borrowers can use savings to overcome the odds or unfavorable conditions by using the saved money. So ASA has given utmost priority to savings of the members. Generally all the members of NGO/MFIs have to save regularly on a weekly basis. But they are, in most cases, not allowed to withdraw the deposited savings. So savings become very useful for the borrowers in their rainy days. Considering that ASA took a praiseworthy initiative in 1997 through introducing the product of voluntary savings along with the mandatory savings. This initiative ensured huge benefit for the group members. Here members are allowed to deposit more amounts along with mandatory savings. They always enjoy the right to withdrawing it with interest in their crisis hours. ASA has been successfully operating both the mandatory and voluntary savings programs. These programs also assist the organization as savings are also used as the revolving loan fund (RLF).

Mandatory Savings
There are different amounts of savings for different programs of ASA. Members of Small Loan Program and Small Business Loan Program have to save Tk. 10 and Tk. 20 respectively each in a week. SEL program has 5% savings obligation of each loan disbursed to the clients. In flexible products the monthly mandatory savings amount is Tk. 10 only.

Long Term Savings

Members of NGOs are the poor section of the society. They generally don't get the opportunity to save for long term in the commercial banks. But they also need this, like others, to shield them against risk as well as to meet dangers, occasions, etc. Again, members all are allowed to run more than one accounts at a time. Total savings deposit during 2010 was Tk. 8,768 million and savings withdrawal was Tk. 7,110 million and balance at the ended December 2010 was Tk. 10,553 million. The table on the next page shows details about it.

Voluntary Savings
In voluntary savings, members can also save small amount according to their respective ability. They can withdraw up to Tk. 500 (rural) and Tk. 1,000 (urban) in their weekly group meeting. In the case of withdrawing above of this amount, they have to go to the branch office.

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SAVINGS
(at a glance)
SL#
1

Particulars
Time of mandatory savings deposit Weekly

Small

Small business
Weekly

Long term
Monthly

Amount of mandatory savings deposit

Tk.10

Tk.20 Tk.100

TK.50Tk.500 N/A

Provision for voluntary savings

Can save above Tk.10 After membership

Can save above Tk.20 After membership

Deposit starts

After received loan After membership Flexible (Anytime they are willing to close)

Withdrawal provision

100% savings are withdrawable, but minimum Tk.100 shall be balance, if one opens life insurance accounts for both wife and husband 95% savings are withdrawable, only 10% savings per thousand loan disbursed will remain as balance 100% withdrawal provision during natural disaster and emergency

Withdrawal place

Up to Tk.1,000 in the group meeting and above in the branch office savings(No withdrawal)

Same as small

Interest on savings

4%

9%-12%

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INSURANCE
ASA has been providing insurance facilities for its group members. This product is of two kinds: (i) Loan Insurance, (ii) Security Fund (Mini Life Insurance). Members of ASA are generally the bread winner of their respective families. So inheritors fall in serious trouble at the death of respective family guardian. These programs are directed to assist the family after member's death. It also includes the provision of returning/withdrawing the deposited amount, with proper interest rate, after a certain period. Business Loan members deposit weekly Tk. 10 and SEL (Small Entrepreneur Lending) members deposit monthly Tk. 50 as the premium. Members get back the deposited premiums if they leave the institution within 50 weeks of starting the premium. S/he receives the total premium added with interest in case of her leaving the institution within 51-399 weeks otherwise she is provided with the mature amount with proper interest. ASA has paid Tk. 32.96 million to the families of 8,010 deceased group members in 2010.

Loan Insurance
The premium of this loan is only Tk. 10 per Tk. 1,000 disbursement. If a member or her husband/guardian dies, then the outstanding amount is written off as the insurance benefit. Inheritors are also given back savings and other demands, if applicable. This program is compulsory for the clients of Small Loan and Small Business Loan. In 2010, ASA has paid Tk. 182.65 million to the families of 25,701 deceased group members as insurance benefit.

Male Small Member's Security (Life Insurance) Fund

This product has been introduced to support member's family further. In this program a small member deposits Tk. 10 per week on behalf of her husband. Three times of the total deposited premiums is given to the wife/successor if the husband dies. She gets back the total deposits added with interest in case of leaving the institution within 200 weeks of starting the premium, otherwise she is provided with the mature amount with proper interest. In 2010 ASA has paid Tk. 2.95 million under this program and the numbers of deceased members were 2,733.

Security Fund Member's Insurance) Security Fund (Life

The program is directed to assist the member's family further. The family of a deceased member gets 6 times of the deposited amount in case of the member's unexpected death. Small and Small

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Year-wise information of members' security funds from 2007 to 2010 is furnished below.

Year-wise (2007-2010) Scenario of Security Fund

Name of Insurance Products Loan Insurance Member's Security Fund Male Member's Security Fund

2007

2008

2009

2010

Amount Deceased Amount Deceased Amount Deceased Amount Deceased Paid Members Paid Members Paid Members Paid Members 47.10 27.37 9.30 10,022 6,543 5,778 113.37 31.23 8.71 18,436 7,356 5,218 162.52 30.05 4.85 27,258 7,251 3,774 182.65 32.96 2.95 25,701 8,010 2,733

ASA insurance policies and procedures

(Facts and figures)
SI. Description Loan Insurance 1 Premium per thousand 2 Benefits Small Small Business Tk.5/Tk.10 Outstanding loan adjustment 18 - 55 years 8 years (400 weeks) Weekly Weekly Tk.10 6 times on deposit Return total deposit with @3 - 4% interest per annum SEL -

3 4 5 6 7 8

Tk. 10 Outstanding loan adjustment Members Security (Life Insurance) Fund Age limit 18 - 55 years Duration of policy 8 years (400 weeks) Deposit system Weekly Premium Weekly Tk.10 Payment dues after death 6 times on deposit of borrower Payment dues after Return total deposit maturity if borrower alive with @3 - 4% interest per annum

18-55 years 8 years/400 weeks Monthly Monthly Tk.50 6 times on deposit Return total deposit with @3- 4% interest per annum

Member's Husband/Guardian Security (Life Insurance) 9 Age limit 10 Duration of policy 11 Deposit system 12 Premium 13 Payment dues after death of member's husband/ guardian 14 Payment dues after maturity if member's husband/guardian alive

Below 55 years 4 years (200 weeks) Weekly Weekly Tk.10 3 times on deposit

Return total deposit with @2% interest per annum

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STAFF & FAMILY

WELFARE FUND
ASA has been taking care of its employees through 'Staff Welfare Fund.' This fund is used for the costly medical treatment for the staff. All the employees contribute monthly to this fund at a fixed rate according to their salary. ASA also contributes to this fund from the income of 'Technical Assistance and Consultancy Services' to other NGOs home and abroad. In 2010, ASA has donated Tk.3.06 million among its staffs for their treatment. Besides, ASA also provides financial assistance for the expensive treatment of the staff's family members from its "ASA Staff Family Welfare Fund". ASA has paid TK.1.20 million under this program during 2010. ASA maintains insurance for each of its staff without taking premiums from them.

Medical Assistance for the Clients

Most of the members belong to the organization come from poor and lower income class of the society. Thus they often fail to bear or arrange the cost of the treatment of their acute and chronic diseases. ASA has come forward to assist its members creating a fund to solve this problem. The institution is providing cost to its clients from this fund for their costly medical treatment. This is an absolute grant provided by ASA and no premium is needed for receiving it. In 2010, an amount of Tk. 20 million was distributed among the borrowers from the fund. Members don't have to pay any premium to get this assistance. They only apply to the related branch office. The branch officials respond to the applicants as early as possible which ensures quick assistance to the members.

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Grassroots
Activities in frames

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Grassroots
Activities in frames

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AGRI-BUSINESS
Development Project
The Agribusiness is a tripartite project involved by the Ministr y of Agriculture of Bangladesh Government, Asian Development Bank and ASA. ASA as a partner of the program is implementing the project financed by the Bangladesh Government and ADB. The main objective of the project is to reduce poverty through growth of agribusiness by generating income and employment in the rural and semi-urban areas of the Bangladesh. It aims to address small agriculture entrepreneurs throughout the country. The project has five components: a) Facilitate credit for small scale agribusiness, b) Technical and marketing support for agribusiness, c) Strengthening capacity of the participating NGOs and the wholesale Banks in agribusiness lending, d) Improving the policy environment for agribusiness and e) Project implementation support. In 2010, ASA provides training to 1772 entrepreneurs under Agribusiness project. Up to December 2010, ASA has disbursed loan and provide technical assistance to the target people under the program are presented below. Cumulative Activity Crops Fisheries Livestock Total Total number of Entrepreneurs received credit Borrower Male Female Total Number 13,960 6,012 19,972 % 70% 30% 100% Member 9,811 3,554 6,607 19,972 Amount (million) 850.08 300.96 980.36 1,740.40

Agri-business project has been created 39,275 new employments in the last four years.

24

Hope for the Poorest (HP)

Hope for the poorest (HP) is an associate organization of ASA has been established to serve the vulnerable, poorest people, especially climate victims of the country. The main objective of the organization is to assist the underprivileged specially the extreme poor with necessary services including health, education, sanitation, etc. HP has started the following programs for the people of different areas of the country in 2010. 1. Free eye camp: Under this program 4545 eye patients have been given treatment for various eye problems through organizing several eye camps in different remote areas of Bangladesh. About 500 patients have got free cataract surgery from these eye camps as they skipped from verge of the blindness. Children and beggars were included among them. 2. Scholarship program: HP starts a scholarship program with a view to provide meritorious students of poor family with stipend in 2010. Six students from seven backward districts who achieved brilliant scores in Primary school final examination. This will be extended to the rest of the part of the country gradually. 3. Water and sanitation program: HP has initiated a Water and Sanitation program partnership with World Bank at Chunerughat upazilla under Habiganj district. Duration of the program is five years. 4. Dutch Wash Alliance program: Six Dutch civil society organizations from the Netherlands formed an alliance named Dutch Wash Alliance with the aim of work in 11 countries of the world, where Bangladesh is one of them. HP became a partner of that Alliance and now working in the process of project implementation. The project activities will be concentrated on water, sanitation and hygiene. 5. Health Complex: A specialized health complex named ASA Health Complex located at Chunarughat upazila 150 kilometers away from Dhaka opened in 2010 and has been running under direct care of HP. Meanwhile the complex has drawn massive attention of the local inhabitants providing quality medical services. More health centers will be established in Brahmanbaria, Satkhira, Gaibandha for providing healthcare services to poorest people at subsidized prize. 6. IT training center- HP has took a training program on information technology for unemployed rural poor youth for moulding them to meet the challenges of present situation of employment. A good number of rural youth have been given IT training in the corresponding year. 7. Integrated community based healthcare program. This program has been by the HP for building awareness among poor people and motivating them for taking proper treatment. Under the program 10 union health workers and 100 community volunteers are working to implement it. 8. Day observation: HP has a program to observe important days declared nationally and internationally to create awareness among the mass a part of its activities. Some important days were observed by HP with due respect including World health day 2010.

25

Events of HP in 2010

26

Future plan of HP
1. Continue and strengthen Primary healthcare program among the poorest, especially women and children in the different parts of Bangladesh. 2. Providing scholarship among poor and disadvantaged school children, especially in cyclone SIDR and AILA affected areas. 3. Promoting ICT for poverty alleviation and combat adverse impact of climate change. 4. To undertake massive tree plantation program by involving the poorest at community level for increasing their income and reducing carbon emission in the environment. 5. To connect the poorest people with socio-economic safety-net program of national, regional and international donor communities. 6. To implement program on safe water for drinking and irrigation purpose, especially AILA affected areas where salinity emerged as a curse for marginalized and small farmers. 7. To strengthen the solar power program as an IGA activity for the poorest. 8. To build up awareness among the people living in coastal belt especially climate victims for mitigation and adaptation with climate change situation. 9. To undertake program on climate change in the light of UNFCCC and IUCN as well as Cop15 declaration. 10. To initiate and implement programs on climate victims rehabilitation. 11. To ensure proper service for the poorest by increasing their awareness and linking with service providers. 12. To enhance marginalized farmers for cultivating climate resistant agriculture products and tolerant variety with the help of Agriculture experts. 13. To encourage children for schooling, especially missing from school due to adverse impact of climate change. 14. To organize Free-eye screening camp for the Poorest and vulnerable people of the society and provide them with Eye- care services. 15. To piloting community-based WASH program at different parts of the country.

27

GOVERNING BODY

Mrs. Husniara Huq

Mr. Mahbubul Alam

Mr. Alauddin Ahmed

Mrs.Taherunnessa Abdullah

Mrs. Mahmuda Islam

Mr. Matiur Rahman Chowdhury

Mrs. Rabeya Akter Choudhury

Mrs.Taherunnessa Abdullah Chairperson Mr. Alauddin Ahmed Treasurer Mr. Mahbubul Alam Member Mr. Matiur Rahman Chowdhury Member Mrs. Mahmuda Islam Member Mrs. Husniara Huq Member Mrs. Rabeya Akter Choudhury Member
Md. Shafiqual Haque Choudhury

Md. Shafiqual Haque Choudhury Member Secretary & CEO

28

ORGANOGRAM
General Body Governing Body

President

EVP (Operation) Directors

(Operation)

EVP (Operation)

EVP (HR)

EVP (Accounts) Director

Directors
(Operation)

Director
(Accounts)

(Finance & MIS) (Legal Affairs)

Director

(Agri-business)

Director

Director
(R & D)

(Operation)

JD/DD

(Operation)

JD/DD

(HR)

DD

Administrator
(ASA Tower)

(Accounts)

DD

Section

IT

(Audit)

DD

(Int'l. Affairs)

AD

PR Section

29

MANAGEMENT TEAM
President Md. Shafiqual Haque Choudhury

Executive Vice Presidents Md. Sohel Mahmud 'Sagar' (Operation) Mr. Sushil Roy (HR) Md. Enamul Haque (Operation) Mr. Ranesh Acharjee, FCA (Accounts)

Directors Md. Fayzer Rahman (Operation) Mr. Nelson Rema (Operation) Md. Mustafa Kamal (Research & Documentation) AKM Aminur Rashid (Operation) Mohammed Azim Hossain (Finance & MIS) Md. Taufiqul Islam Chowdhury (Accounts & HR) Md. Qutubur Rahman (Legal Affairs) Md. Ataur Rahman (Operation) Md. Altaf Hossain (Agri-business) Md. Tajul Islam (Operation)

30

31st ANNUAL GENERAL MEETING

The 31st Annual General Meeting of ASA was held on 27th December 2010 at ASA Tower Conference Hall at Shyamoli, Dhaka. Mrs. Taherunnessa Abdullah, honorable Chairperson of the Governing Body, presided over the meeting. Members of General Body were present on the occasion. Activities of the organization during the year were discussed in the meeting. Reports of 2010 were presented and the General and Governing body endorsed the plan for 2011. Members of the General Body and Senior Officials of ASA were also present in the 31st Annual General meeting.

31

PARTNERSHIP
Program

ASA has a policy to assisting the local small and emerging NGOs so that they can play a pivotal role in poverty alleviation as well as can be sustainable within the shortest possible time. ASA provides these partner NGOs with skilled manpower, technical support and also with loan funds. Under this program, ASA has more than 30 partner NGOs all over the country. ASA ensures soft loan funds from the donors to the

local organizations. It is due to ASA's earnest efforts, CORDAID-Netherlands extended financial support to 12 partner NGOs. CORDAID loan ended after completion of 6 years. Through the partner NGOs ASA tries to ensure its assistance to more and unserved poor people of the remotest areas of the country. All of the partners are also building their capability to get access to other funds. Until December 2010 the partner NGOs' outreach was 63,372 with Tk. 459 million outstanding.

32

Green Housing & Energy Limited

About 70 per cent people of the country live in rural areas in approximately 85 thousand villages. After independence, efforts are made to connect very few villages with the grid power. Villagers need electricity for lighting, running home appliances, small power consuming services like grinding and for agriculture applications. Due to geographical and cost considerations still sizable per cent of villages/hamlets are not connected with grid power. In case the average distance from the power line is 25 KMs it costs approximately 25000 Lakhs (BDT) to connect the village. Needless to say those substantial amounts are needed to maintain the line, transformer and there will be system losses. Finally if the village population is less than 100 meaning 5 houses, it becomes most unviable to supply and maintain the regular power. The hamlets situated in dense forests and the ones located far away from the power lines are generally thinly inhabited and power requirements at the moment are for communication and lighting. It is proposed to use the low power consuming LED lighting with very low investments in one sample Kurigram district and demonstrate the capability and usefulness of the LEDs thus facilitating large scale application in the rural areas. Overview: Green Housing & Energy Limited (GHEL) is a sister concern of ASA highly reputed microfinance institution in Bangladesh, and of International Center for Microfinance and Social Enterprises Ltd.(ICMSE) which is dedicated to Social Enterprises Development by linking corporate social capital venture funds with new technologies for a sustainable development. The company is implementing the project in the blend of Private Public Partnership (PPP) model and addressing the need of decent housing and energy solution. Mission & Objective: The ultimate objective of GHEL is to overcome the dependency on fossil fuel by offering alternative green energy like solar energy for people's everyday activity. Today, the immense needs of electricity, gas or proper housing system are difficultly met by the government alone. Therefore, GHEL comes up with innovative solutions by providing both its microfinance clients and its staff with the best and cleanest technology at an affordable price. Prime Objectives of GHEL: (i) Solar & Agro Business: o 25,000 Solar Home Systems installation within 2011. o 500 High Capacity Solar Water Pump for irrigation/household purposes within 2011. o 3,000 Power Tiller for agriculture. o 60,000 Solar Lantern for the rural people those who are out of National Power Grid Line. (ii) Assembling Unit and Battery production Plant: (iii) Low Cost Housing: o Business testing to set up the buildings. (iv) Community People's Empowerment: o By lessening energy & electricity expenses. o By supplying a cheap energy source. o By providing equipped low cost sustainable houses. o By providing technical training on solar technology. o Access to high tech customized solutions for isolated low income people. (v) Capacity Building: o Setting up 100 Branch Office & Technical Service Center. o Provide training for skill development to 500 Diploma Engr./Technicians. o Orientation/Training for 45,000 village women.

33

Vision for 2012 Collective efforts for lightening the rural Bangladesh by reducing the drastic carbon emission and community people empowerment in Bangladesh.

Major Operations
O Various types of Energy Transmission. O Rural women empowerment. O Reduces environmental pollution.

Core Customers
O O O O O Low Income People. Mosque. Villages/Markets. Remote & Coastal Area. Urban Area.

Values
O O O O O Customer Focus. Winning with people.. Safety. Excellence in all what we do. Continuous Improvement.

Business Units
O O O O O O Solar Products. Low Cost Green Housing. Agro Business. Battery driven Auto Bike. Solar Battery Plant. Biogas Plant.

34

Status as of December 31, 2010

SL 1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction Number of Clients Service Center (CSC) Number of Regional Offices Number of Staff (Head Office 24, Field Staff 84) Number of Solar Lantern Sold Out Number of Solar Home System Sold Out Number of Training Session Organized Number of ASA Branch Staff Trained Number of Rural Women Oriented Number of Districts Served Present Status 47 08 108 5,702 1,504 270 3,965 5,750 60 times have electricity fluctuation, supply cannot meet the demand of public. In Bangladesh the dire need for alternate source of energy has it rock bottom. Our region is growing; our industries have more demands to meet Bangladesh market. Our housing and Industry requires self sufficiency and cost effective on the long run for the people energy source that will not empty their pockets on a monthly basis.

GHEL AT A GLANCE

In this fast changing modern world energy has become a big factor to run the economics and developments. With the invention on new transportation, need for new innovation, need for technology, invention of modern industries, and modern consumption of various types including the mass increase in population we need to concentrate on alternative energy as well as clean air energy. In most places in the world there are still in current

35

ASA in the Media

The media has given a remarkable coverage to ASA activities and programs during 2010. The news and features on ASA's grassroots and activities dominated the development features pages of the frontline national dailies of the country round the year. studies A number on of ASA special features and case borrowers who attained generating activities

hand, electronic media also provided a sufficient space for telecasting activities of ASA last year. The president of the organization was interviewed several times and quoted recurrently by the leading dailies. Besides, views and comments of the senior and field level officials of ASA were also circulated by the national and local newspapers for their news potentiality. In spite of that microcredit and MFIs suffered a surge of criticisms from the strident critics and the media also.

A S A
As an organization ASA considers media as a necessary organ of the state as well as an essential tool for development. So ASA always gives priority to media at any important event or occasion. Over the years media of the country has played a laudable role to promote anti poverty programs which were extremely helpful for the development organizations. ASA always has maintain a worm and fruitful relationship with the media.

published. On the other

i n th

using microcredit were

dia e M

success through income

36

Publications
ASA Research and Documentation cell brings out different publications on the activities and its impacts in a regular basis. The ASA publications includ newsletters, annual report, booklets, brochures and books on its activities, research and studies. Several publications have been brought out in 2010.

37

FINANCIAL Analysis
Income and Expenditure in ASA The earning of ASA was Tk. 9,986 million in 2010. This income includes Tk. 8,894 million from service charges, Tk. 558 million from bank interest, Tk. 70 million from membership fees and Tk. 264 million from other sources such as selling of publications and used newspapers, earning through consultancy services, etc.
10000 8000 6000 4000 2000 0

Income

Membership fees

Service charges

Expenditure The total expenditure of ASA in 2010 was Tk.8,468 million, including Tk. 4,024 million as personnel expenses, Tk. 489 million office expenses, Tk. 697 million financial costs, Tk. 343 million loan loss provision and Tk.2915 million imputed costs. The net margin at the year-end of 2010 was Tk.1318 million.

Other sources

Bank interest

38

Sources of fund
ASA has established itself as a financially self-reliant MFI and does not accept any grant or donation for a decade. ASA's total fund for providing microfinance services was approx Tk.49,790 million at the end of 2010. This includes of ASA's own funds (including reserve fund), Tk.26,126 million member's savings, Tk.10,553 million members' security fund, Tk.4,037 million CORDAID loan, Tk.49 million, loan insurance Tk.1,411 million, Debt Management Reserve (DMR) Tk.1,209 million, Tk.2,611 million commercial Bank, Tk.647 million from ADB and Tk.3,147 million from other sources such as staff security, provident fund, etc.

Rate of Recovery
Because of persuing innovative appproach and a highly effective operational methodology ASA's management has been successful in ensuring a high rate of repayment. Since 1995, ASA's rate of recovery has been above 99%. At the end of 2010, the rate of repayment was 99.80%.

Rate of Recovery

39

Operational Efficiency
The monitoring system of ASA is very strong and there is a sound understanding between the field and the central office in ASA. It ensures a regular constructive feedback from the field that helps the management to improve ASA's operational efficiency. Keeping the cost of per taka lent at the minimum has also been possible for following this process. In 2010, cost per taka lent in ASA was Tk. 0.066.

Operational Efficiency

2007

2008

2009

2010

OSS & FSS

ASA has attained the donor-free status in microfinance programs within less than a decade time span from the beginning. Since 2001, it does not accept any grant from the donors, rather it tries best to utilize its own fund as well as the members' savings. The organization also uses its idle money as the Revolving Loan Fund (RLF). In 2010, the Operational Self-sufficiency (OSS) and the Financial Self-sufficiency (FSS) were 176.20% & 115.56% respectively.

40

FINANCIAL Statistics
(Amount in BD Taka)

Particulars Information No. of branches Total no. of groups No. of members (in million) No. of active borrowers (in million) No. of loan officers (end of year) Average no. of members per LO Avg. no. of borrowers per LO Avg. no. of members per branch Loan portfolio Yearly total loan disbursed (in million) No. of loans disbursed (in million) Average loan size Total loan outstanding (in million) Current Overdue (past due) Avg. outstanding balance by clients Portfolio per Loan Officer (in million) Portfolio per staff (in million) Total amount written off (in million) Total loan loss reserve (in million) Savings Total savings (in million)

2010

2009

2008

2007

3,194 273,317 5.56 4.47 12,498 453 357 1,771

3,236 271,059 5.50 4.00 13,266 407 302 1,699

3,303 271,976 7.28 5.88 14,266 504 412 2,177

3,333 239,695 6.66 5.42 14,788 451 367 2,002

68,486 4.83 14,183 37,525 36,758 767 7,728 3.00 1.67 343.41 1,209

61,495 5.04 12,203 31,323 30,195 1,128 7,830 2.36 1.30 306.39 1,207

61,108 6.73 9,039 32,022 31,222 800 5,193 2.24 1.24 146.84 1,092

48,365 6.10 7,868 24,704 24,240 464 4,501 1.67 0.98 69.48 769.06

10,553

8,145

6,433

4,604

41

Particulars Productivity/quantitative indicator Cost per money lent Cost per loan made Portfolio in arrears Portfolio at risk Loan loss ratio Reserve ratio Effective yield on avg. portfolio Effective yield on avg. assets ROE (Return on Equity) ROA (Return on Assets) Operating self-sufficiency (OSS) Financial self-sufficiency (FSS) Total expenses/Total average assets Financial cost/Total average assets Adjustment cost/Total average assets Loan loss cost/Total average assets Operating cost/Total average assets Total equity (own fund)/assets Total equity (own fund)/liability USD1= Taka
Note: 2010 figures are provisional

2010

2009

2008

2007

0.066 935 2.04% 2.55% 0.91% 3.22% 25.79% 20.13% 5.49% 2.98% 176.20% 115.56% 19.17% 1.58% 6.60% 0.78% 10.22% 59.14% 134.20%
70.75

0.068 839 3.60% 4.67% 0.97% 3.86% 22.72% 19.66% 3.57% 1.94% 140.27% 110.63% 18.24% 1.68% 3.85% 1.15% 11.56% 57.28% 130.60%
68.45

0.069 632 2.50% 5.00% 0.45% 3.41% 24.35% 23.38% 3.80% 2.29% 136.75% 110.40% 22.44% 2.09% 4.32% 1.59% 14.41% 63.79% 130.66%
68.50

0.053 424 1.85% 3.36% 0.27% 3.11% 26.00% 24.89% 8.88% 5.70% 187.13% 127.77% 20.52% 2.17% 6.51% 1.01% 10.82% 70.36% 155.44%
68.56

42

ASA at a Glance
Up to December 2010
(Amount in BD Taka) 1. Year of Starting the Microcredit Program 1992 3,194 22,458 511 64 Small Small Business 7. Active Members Small Small (male) Small Business SEL Agri Business 8. Borrowers Small Small (male) Small Business SEL Agri Business Education Rehabilitation 9. Savings Balance (Taka in Million) Small Small Business SEL & Agri Business LTS 10. Security Fund (Policy holders) 11. Security Fund (Taka in Million) (End balance) 12. Loan Outstanding (Taka in Million) 13. Rate of Recovery 14. Operational Self-Sufficiency (OSS)-2010 15. Financial Self-Sufficiency (FSS)-2010
* Note: Figures are provisional

2. Branch Offices (Rural-2,878, Urban-316) 3. Staff (Central office- 235, Field- 22,223) 4. Thanas (sub-districts) 5. Districts 6. Groups 225,303 48,014 4,531,002 571,646 398,864 134,773 19,972 3,954,447 8,401 342,530 134,773 19,972 6,269 1,075 4,876 1,055 707 3,887 5,018,419 571,646 3,761 299

273,317

5,656,257

4,467,497

10,525 5,590,065 4,060 37,525 99.80% 176.20% 115.56%

Member Husband/Guardian Member Husband/Guardian

43

EXPOSURE & INTERNSHIP

ASA Bangladesh began its micro-finance program in 1991. Since then, ASA microfinance program had to strive developing its own processes and procedures to run the program with a view to serving the poor who needs it and thus the program has been characterized in the pace of time with achievements of specialty features such as cost-effectiveness, sustainability and simplicity of ASA microfinance model. The success factors behind are termed as innovative techniques of ASA microfinance program. A less hierarchical organogram helps ASA to run its microfinance program through intensive caring of its operation and management through regular field supervision and program monitoring activities. The staffing pattern with highest motivation and dedication levels could be other areas of concern for us all why ASA succeeded to go for fastest widening market with a principle of each one teach one in implementation of her microfinance program for the poor household families. Both nationally and internationally the reputation of ASA's Microfinance Sustainable Development Model has been spread worldwide. It has achieved its prominence in disseminating financial services at present to about 5.6 million borrowers in Bangladesh who have microenterprises and small businesses of their own. It's tools to provide financial services to the poor is designed as per need of the reality and practice of our people and their cultures. At present ASA has been turned into an established microfinance viable institution which is now venturing towards new realm of sister concerns such as education, healthcare, IT development scheme, schemes for the poorest, green housing energy projects etc. Expansion and extension of new branch opening, increase in outreach, injecting the new flow of loan fund, developing credit disbursement plan for the year, introducing installments, savings and other collections techniques, appliance of delinquent loan management techniques, incorporating new product development in the product line through participatory and piloting processes etc. are planned, implemented, supervised and monitored with highest attention from all level of responsible officials. As a result, ASA can maintain the quality of services with high recovery rate through serving the needs of her borrowers annually. Due to specialization of microfinance services for the micro-entrepreneurs and businessmen in Bangladesh and abroad, ASA's venturing in 8 countries throughout Asia, Africa and Latin American countries are on-going. ASA's cost-effective microfinance model is another important area of interest for the visitors to practically see, learn through interactions with borrowers, ASA staffs and other relevant sources. Impact on borrowers lives are known through attending the weekly group meetings of the borrowers by interaction with the clientele and being exposed to their income generation activities in the visiting areas of ASA microfinance operations. All these few innovative salient features attracts students, visitors, researchers and others to come and learn ASA's microfinance model practically around the year.

44

A summary of the exposure and internship program of ASA is particular in the table below of the year 2010. SL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Organization/Individual ALTA Mexico ASIA Foundation BRAC Development Institute (with Japanese student) CARD - Banks, MRI China Association of Microfinance GTZ IFMR Kyushu University NABARD Nirman Bharati University of South Sewanee USA Microlending Film Yemen Microfinance Network Yonezawa Junior College Country Mexico USA Japan Philippines China Nigeria India Japan India India USA USA Yemen Japan

The excellence of ASA Microfinance Program has attracted 166 visitors from 8 different countries around the year 2010.

Internship program
In 2010, there were eight students from five different foreign universities came for internship in ASA, Bangladesh. They did visit ASA field offices and have had interaction with the borrowers directly in the weekly meetings and visiting their income generating projects. The interns did complete their internship in ASA during the summer.

45

A list of interns from different foreign universities and countries are given below: SL 1 2 3 4 5 6 7 8 Name of Students Jennifer Elyse Good Felix Kwablah Alorvor Gladys Korkor Nelson-Doryumu Catherine Jo Appleton Emily Book Gloekler Yoko Miura Tara Ann Leung Shusmita Islam University Claremont Mckenna College University of Bergamo University of Bergamo Rhodes College, Tennessee University of Kent-Brussels School of International Studies, Brussels University of Bradford, West Yorkshire The Fletcher School/Tufts University University of British Columbia(UCB) Country USA Italy Italy USA Belgium UK USA Canada

National students
A few local universities sent their students to ASA, Bangladesh for internship in the year 2010. ASA's scope of giving this service is very much limited for a few universities. Due to having less arrangement for many interns at the moment, ASA is unable to provide this service to all the requesting universities all through the year. The following table shows ASA's efforts for catering internship course to the students of our local universities

SL 1 2 3 4 5 6

University Lalmatia Mohila College-Hons. and Masters Final Year Students University of Dhaka-Department of Management Studies University of Dhaka-Institute of Social Welfare & Research (BSS and MSS) Stamford University Bangladesh-BBA (Finance) Daffodil International University-BBA ASA University Bangladesh-MBA(Marketing/Finance)

Students 23 1 12 1 1 5

The above table shows that a total number of 43 students did internship in ASA from 6 different universities of Bangladesh.

Research study
The PhD students of different universities abroad visits ASA for their research activities each year. They work on ASA microfinance operations, finance, MIS, HR etc. Last year there were two PhD Students who made visits to ASA and completed their research projects. One of them came with his team members during February 2010 from Jawaharlal Nehru University, New Delhi, India and the other one came from the School of Management and Business, UK who did his research work visiting ASA and its field offices around the country during December 2010.

46

TECHNICAL
ASA has been providing Technical Assistance (TA), since 1993, to the NGO/MFIs of different countries as a microfinance consultant. It has already provided many NGOs/MFIs of 16 countries around the globe with technical assistance for their quick and sustainable development. A considerable number of visitors and trainees also visit ASA every year with a view to acquiring knowledge about implementation of ASA activities. ASA has already provided Technical Assistance (TA) to the following countries.

47

ASSISTANCE

48

ASA University

Bangladesh
ASA University Bangladesh (ASAUB) was founded in October 2006 and the academic program started from May 19, 2007 with the aim of providing educational access to underserved and underprivileged population. The founder and President of ASA, Md. Shafiqual Haque Choudhury, who was also the former Adviser to t h e C a r e t a ke r G o v e r n m e n t o f B a n g l a d e s h , conceived a noble idea of establishing a private university with a view to providing quality education targeting the middle class and underprivileged students all over the country. Today ASA University Bangladesh has 5657 students and 94 full time faculty members. ASAUB is committed to improve the socio economic conditions and lifestyle of the people by offering quality education at affordable cost. The policies underpinning the vision of ASAUB communities.

have become an integral part of the culture of ASA University Bangladesh. The mission of ASA University Bangladesh is to provide access to higher education opportunities that enable students to develop knowledge and skills necessary to achieve their professional goals, improve the productivity of their organizations, and provide leadership and ser vice to their ASAUB has recently added degrees in Bachelor of Pharmacy, BSS in Applied Sociology and Masters in Public Health. There are immediate future plans to expand the Faculty of Science and Engineering by the addition of B.Sc in Electrical& Electronics Engineering, B.Sc in Electrical & Telecommunication Engineering and Computer Science Engineering degrees.

49

Other addition of new degrees include MDS & MSS in Applied Sociology under the faculty of Arts and Social Science. The University at present is occupying about 90,000 sq feet area throughout 7 floors of its 15 storied building at ASA Tower, Shymoly, Dhaka capital city of Bangladesh. The authority hopes to move very soon to its permanent campus. With accountability and transparency throughout higher education, ASA University Bangladesh is

constantly improving innovative teaching and is looking ahead to a bright future. The university will go on addressing the challenges facing our education today and calling for greater understanding of the country's next generation of students, who are increasingly different from generations past. As a university, its role is to explore how best to serve the growing contingent of talented, hard working people who want to better themselves and build a tradition of excellence for tomorrow's leaders.

Present status
The university admits students at three different starting dates in a year which provides the students wonderful opportunity to join a suitable program at their convenience. At present, the university offers the following programs under the four Faculties: o o o o o Business Administration -BBA, MBA (Regular & Executive) Science & Engineering- M.PH, B.Pharm Arts, Social Science ,BA (Hons) in English, MA in English(1yr & 2 yrs), BSS in Applied Sociology Law -LLB (Hons), LLM (1yr & 2yrs) MBA major in Microfinance

50

ASA ACROSS THE COUNTRY

Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Name of District Bagerhat Bandarban Barguna Barisal Bhola Bogra Brahmanbaria C. Nawabganj Chandpur Chittagong Chuadanga Comilla Cox's Bazar Dhaka Name of Thana Bagerhat, Chitalmari, Fakirhat, Kachua, Mollahat, Mongla, Morrelganj, Rampal, Sarankhola Sadar, Lama, Ali Kadam, Naikhongchhar Amtali, Bamna, Barguna, Betagi, Patharghata Agailjhara, Babuganj, Bakerganj, Banaripara, Barisal, Gaurnadi, Hizla, Mehendiganj, Muladi, Wazirpur Bhola, Burhanuddin, Char Fasson, Daulatkhan, Lalmohan, Manpura, Tazumuddin Adamdighi, Bogra, Dhunat, Dupchanchia, Gabtali, Kahaloo, Nandigram, Sariakandi, Shahjahanpur, Sherpur, Shibganj, Sonatala Akhaura, Ashuganj, Bancharampur, Brahmanbaria, Kasba, Nabinagar, Nasirnagar, Sarail Bholahat, C. Nawabganj, Gomastapur, Nachole, Shibganj Chandpur, Faridganj, Haimchar, Haziganj, Kachua, Matlab, Shahrasti Anwara, Baklia, Bandar, Banshkhali, Biajit Bostami, Boalkhali, Chandanaish, Chandgaon, Fatikchhari, Hali Shahar, Hathazari, Lohagara, Mirsharai, Pahartali, Patenga, Patiya, Rangunia, Raozan, Sandwip, Satkania, Sitakunda Alamdanga, Chuadanga, Damurhuda, Jibannagar Barura, Brahmanpara, Burichang, Chandina, Chauddagram, Comilla , Daudkandi, Debidwar, Homna, Laksam, Manoharganj, Megna, Muradnagar, Nangalkot , Titas Chakaria, Cox's Bazar, Kutubdia, Maheshkhali, Pekua, Ramu, Teknaf, Ukhia Badda, Cantonment, Demra, Dhamrai, Dhanmondi, Dohar, Gulshan, Kafrul, Kamrangirchar, Keraniganj, Khilgaon, Lalbagh, Mirpur, Mohammadpur, Nawabganj, Pallabi, Ramna, Rampura, Sabujbagh, Savar, Shampur, Sutrapur, Tejgaon, Uttara Biral, Birampur, Birganj, Bochaganj, Chirirbandar, Dinajpur, Ghoraghat, Hakimpur, Kaharole, Khansama, Nawabganj, Parbatipur, Fulbari Alfadanga, Bhanga, Boalmari, Charbhadrasan, Faridpur, Madhukhali, Nagarkanda, Sadarpur Fulgazi, Sonagazi, Daganbhuiyan, Chhagalnaiya, Parshuram Gaibandha, Gobindaganj, Palashbari, Phulchhari, Sadullapur, Saghatta, Sundarganj Joydebpur, Kaliakair, Kaliganj, Kapasia, Sreepur, Tongi Gopalganj, Kashiani, Kotalipara, Muksudpur, Tungipara Ajmiriganj, Bahubal, Baniachong, Chunarughat, Habiganj, Lakhai, Madhabpur, Nabiganj Baksiganj, Dewanganj, Islampur, Jamalpur, Madarganj, Melandaha, Sarishabari # of Thana 09 03 05 10 07 12 08 05 07 20 04 15 08 23 # of Branch 41 05 36 85 53 87 53 39 47 106 35 94 37 111

15 16 17 18 19 20 21 22

Dinajpur Faridpur Feni Gaibandha Gazipur Gopalganj Habiganj Jamalpur

13 08 06 07 06 05 08 07

91 55 23 69 56 28 38 49

51

Sl. No. 23

Name of District Jessore

Name of Thana Abhaynagar, Bagherpara, Chaugachha, Jessore, Jhikargachha, Keshabpur, Manirampur, Sharsha

# of Thana 08

# of Branch 66

24 25 26 27 28

Jhalakati Jhenaidaha Joypurhat Khagrachhari Khulna

Jhalakati, Kathalia, Nalchity, Rajapur Harinakunda, Jhenaidaha, Kaliganj, Kotchandpur, Maheshpur, Shailkupa Akkelpur, Joypurhat, Kalai, Khetlal, Panchbibi Khagrachhari, Manikchhari, Panchhari, Ramgarh Batiaghata, Dacope, Daulatpur, Dighalia, Dumuria, Khalishpur, Khanjahan Ali, Koyra, Paikgachha, Khulna, Phultala, Rupsa, Sonadanga, Terokhada

04 06 05 06 14

21 51 35 11 64

29

Kishoreganj

Astagram, Bajitpur,Bhairab, Hossainpur, Itna , Karimganj, Katiadi, Kishoreganj, Kuliarchar, Mithamain,Nikli, Pakundia, Tarail

13

77

30

Kurigram

Bhurungamari, Char Rajibpur, Chilmari, Kurigram, Nageshwari, Phulbari, Rajarhat, Raomari, Ulipur

09

48

31 32 33 34 35 36 37 38 39 40

Kushtia Lakshmipur Lalmonirhat Madaripur Magura Manikganj Meherpur Moulavibazar Munshiganj Mymensingh

Bheramara, Daulatpur, Khoksa, Kumarkhali, Kushtia, Mirpur Kamol Nagar, Lakshmipur, Raipur, Ramganj, Ramgati Aditmari, Aliganj, Hatibandha, Kaliganj, Lalmonirhat, Patgram Kalkini, Madaripur, Rajoir, Shib char Magura, Mohammadpur, Shalikha, Sreepur Daulatpur, Ghior, Harirampur, Manikganj, Saturia, Shibalaya, Singair Gangni, Meherpur, Mujib Nager Barlekha, Juri, Kamalganj, Kulaura, Moulvibazar, Rajnagar, Sreemangal Gazaria, Lohaganj, Munshiganj, Sirajdikhan, Sreenagar, Tongibari Bhaluka, Dhobaura, Gaffargaon, Gouripur, Haluaghat, Ishwarganj, Muktagachha, Mymensingh, Nandail, Phulbari, Phulpur, Tarakanda, Trishal

06 05 05 04 04 07 03 07 06 13

48 27 34 33 29 32 21 33 29 91

41

Naogaon

Atrai, Badalgachhi, Dhamoirhat, Mahadebpur, Manda, Naogaon, Niamatpur, Patnitala, Porsha, Raninagar, Sapahar

11

78

42

Narail

Kalia, Lohagara, Naragati, Narail

04

24

52

Sl. No. 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62

Name of District Narayanganj Narsingdi Natore Netrokona Nilphamari Noakhali Pabna Panchagarh Patuakhali Pirojpur Rajbari Rajshahi Rangamati Rangpur Satkhira Shariatpur Sherpur Sirajganj Sunamganj Sylhet

Name of Thana

# of Thana

# of Branch 62 58 45 62 53 46 63 34 62 37 37 74 09 75 38 30 34 50 54 67

Araihazar, Bandar, Fatulla, Narayanganj, Rupganj, Siddirganj, Sonargaon Belabo, Monohardi, Narsingdi, Palash, Raipura, Shibpur Bagatipara, Baraigram, Gurudaspur, Lalpur, Natore, Noldanga, Singra Atpara, Barhatta, Durgapur, Kalmakanda, Kendua, Khaliajuri, Madan, Mohanganj, Netrokona, Purbadhala Dimla, Domar, Jaldhaka, Kishoreganj, Nilphamari, Saidpur Begumganj, Chatkhil, Companiganj, Hatiya, Noakhali, Senbagh, Sonaimuri, Subarna Char Ataikula, Atgharia,Bhangura, Bera, Chatmohar, Faridpur, Ishwardi, Pabna, Santhia, Sujanagar Atwari, Boda, Debiganj, Panchagarh, Tetulia Bauphal, Dasmina, Dumki, Galachipa, Kalapara, Mirzaganj, Patuakhali Bhandaria, Kawkhali, Mathbaria, Nazirpur, Swarupkati, Pirojpur, Zia Nagar Baliakandi, Goalandaghat, Pangsha, Rajbari Bagha, Bagmara, Boalia, Charghat, Durgapur, Godagari, Mohanpur, Mothihar, Paba, Puthia, Rajpara, Tanore Baghaichhari, Kaptai, Kawkhali, Langadu, Rajasthali , Rangamati Badarganj, Gangachhara, Kaunia, Mithapukur, Pirgachha, Pirganj, Rangpur, Taraganj Assasuni, Debhata, Kalaroa, Kaliganj, Satkhira, S hyamnagar, Tala Bhederganj, Damudya, Gosairhat, Naria, Shokhipur, Shariatpur Palang, Zanjira Jhenaigati, Nakla, Nalitabari, Sherpur, Sreebardi Anayetpur, Belkuchi, Chauhali, Kamarkhanda , Kazipur, Raiganj, Shahjadpur, Shalanga, Sirajganj, Tarash, Ullapara Bishwamvarpur, Chhatak, Derai, Dharampasha, Dowarabazar, Jagannathpur, Jamalganj, Sullah, Sunamganj, Tahirpur Balaganj, Beanibazar, Bishwanath, Companiganj, Fenchuganj, Golabganj, Gowainghat, Jaintiapur, Kanaighat, Khadimnagar, Osmani Nagar, Surma, Sylhet, Zakiganj ,

07 06 07 10 06 08 10 05 07 07 04 12 06 08 07 08 05 11 10 14

63 64

Tangail Thakurgaon

Basail, Bhuapur, Delduar, Dhanbari, Ghatail, Gopalpur, Kalihati, Madhupur, Mirzapur, Nagarpur, Sakhipur, Tangail Baliadangi, Haripur, Pirganj, Ranisankail, Thakurgaon

12 05

65 50

53

ASA Coverage
NEPAL

Bangladesh
ASA

Panchagarh

(Up to December 2010)

ASA

ASA

Thakurgaon

Nilphamari

Lalmonirhat
ASA

ASA

Kurigram
ASA ASA

Dinajpur

Rangpur

INDIA
ASA

ASA

Gaibandha Joypurhat
ASA ASA

INDIA
Sherpur
ASA ASA ASA

Naogaon
ASA

Jamalpur
ASA

Bogra
ASA

Netrokona

Sunamganj

ASA

Sylhet

C.Nawabganj
ASA

Mymensingh Rajshahi
ASA ASA ASA ASA ASA ASA

Moulavibazar

Natore

Sirajganj

Tangail
ASA

Kishoreganj

Habiganj

ASA

Pabna
ASA

Gazipur
ASA ASA Narshingdi Brahmanbaria ASA ASA

Kushtia
ASA

Meherpur
ASA

Manikganj
ASA

Dhaka
ASA

Rajbari
ASA

Narayanganj
ASA

INDIA
Comilla
ASA

Chuadanga

Jhenaidah

ASA ASA

Magura

Faridpur

Munshiganj

ASA ASA ASA ASA

Jessore

Narail

ASA

Madaripur

Shariatpur

Chandpur Khagrachhari Lakshmipur

ASA ASA ASA

ASA

Gopalganj
ASA

Noakhali

Feni Rangamati
ASA

ASA

Barisal
ASA ASA

Pirojpur
ASA ASA

Jhalakati
ASA

Satkhira

Khulna

ASA

Bhola

Chittagong

ASA

Patuakhali
ASA ASA

INDIA

Barguna

Bagerhat

BAY OF BENGAL Districts Thanas Branches 64 511 3,194

Bandarban Cox's Bazar

ASA

ASA

MYANMAR

54

Plan for 2011

ASA has planned to achieve the following targets during 2011
1 2 3 4 5 6 7 Branches Thanas Groups Active members (in million) Savings (Taka in million) Active borrowers Loan disbursement (Taka in million) 3,200 515 280,000 5,593,072 12,102 5,033,764 78,758

55

Advisor Written by Design Editing Data & Financial Analysis Published by Printed by

: Md. Shafiqual Haque Choudhury : Habibur Rahman : Habibur Rahman & Md. Shahidul Islam : Md. Mustafa Kamal : Mohammed Azim Hossain & Md. Shamsul Hasan : ASA : Evergreen Printing and Packaging

ASA
ASA Tower
23/3 Khilji Road, Shyamoli Dhaka-1207, Bangladesh Phone: 8119828, 8155083 Fax: 880-2-9121861 E-mail: asabd@asa.org.bd

www.asa.org.bd