RGVN (North-East) Microfinance: Ornamenting Business by providing Microfinance Solutions

A leading microfinance institute operating in the North-Eastern region of India, RGVN (North East) Microfinance, is contributing in the improvement of the people in this region by facilitating better access to health, education and livelihood opportunities. It is the first and only NBFC-MFI from the North East to be receiving the coveted Small Finance Bank stature from Reserve Bank of India, which was awarded to RGVN (NE) MFL on 31st March, 2017. Dedicated towards the service of providing inclusive evolution for all sections of the society, RGVN (NE) MFL was set up in the year 1995 as RGVN-CSP and registered as a public limited company in 2008. Since their inception, they have been focused on their mission of providing financial and other support services to the underprivileged sections of the society in the Northeast and have been striving hard to improve their quality of life. They registered their first success in the year 2010, when they received the license from RBI to operate as an NBFC-MFI. Ever since there has been no looking back for them as they continued their march towards success by spreading their business over 7 states in the North Eastern region of India and West Bengal, with a network of 139 branches and touching and improving the lives of over 4.07 Lakh clients with a portfolio outstanding of Rs. 688 crore and a cumulative disbursement of Rs. 680 crore as on 31st March, 2017

About the Noblewoman of RGVN

Rupali Kalita, Managing Director of RGVN (North East) Microfinance is an experienced development banker with an experience of over 33 years in the Banking and Financial Services sector. She has 20 years of experience in Retail Banking with Langpi Dehangi Rural Bank as Senior Manager.

Kalita, has to her credit a degree from Boulder Microfinance, Turin, Italy besides various other certifications from different institutions. She has been trained in Microfinance from Basix and has exposures to ASA, BRAC premier institutions in Bangladesh and in Amana Ikhtiar, Malaysia, Bank Patanian and Bank Simpanan, Malaysia, to name a few. She has also attended a certificate course on Strategic Leadership in Financial Inclusion from HARVARD, USA in March 2016.

Kalita joined the RGVN Society to head its microfinance programme in 2004 and was instrumental in successfully turning around the operations of a loss making RGVN-CSP into a profitable NBFC, within a period of 2 years by streamlining the existing processes, instilling financial discipline and boosting the staff morale. She was instrumental in reducing the Portfolio at Risk in less than 60 days from a whopping 23% to a miniscule 0.13% and also in reaching out to a total of 4.07 Lakh clients in Mar 2017 as against 30,939 in 2004.

The expansion of outreach of the RGVN (NE) MFL to 7 states of North East and North Bengal with a network of 139 branches and the consistent growth in the business with a total portfolio outstanding of over Rs. 688 crore as on Mar 2017, as against Rs. 40 Lakh in 2005, has only been possible for her able leadership and dedication, which has further enabled the transformation of RGVN (NE) MFL from an NBFC-MFI into a Small Finance Bank called North East Small Finance Bank, the only NBFC-MFI from North East to receive this coveted stature from the Reserve Bank of India. She has been working for the empowerment of the underprivileged women in the rural and urban sector through financial intermediation by persistently encouraging them to form up their confidence and to emerge as successful entrepreneurs.

Spreading happiness by providing services

Since inception, RGVN (NE) MFL has been motivated on their mission of providing financial and other support services to the underprivileged sections of the society in the Northeast and has been striving hard to progress their quality of life. They registered their first success in the year 2010 by receiving the license from RBI to function as an NBFC-MFI.

RGVN (NE) MFL, efficaciously assessed the gap in the delivery of financial services to the last mile and assumed the fact that if this Eastern Corner of India, which is amusing in traditional economic activities, is provided with the right financial assistance and guidance, then it can advance lives of the people in this region and can help in alleviating poverty.

Meanwhile, RGVN (NE) MFL has been focused in bridging the gap in the financial services protracted to the weaker section of the society viz. small traders, farmers, marginal agriculturist and micro entrepreneurs, who are waiting at the fringes for financial services to come their way by providing them micro-loans for various income generating purposes. They have been extending financial support to them by providing loans for Agriculture & Allied activities, Handloom & Handicrafts, Petty Trades and other welfare purposes like Water & Sanitation, Education, Marriage, and Health. Besides providing financial support RGVN has also been providing various support services to their clients which includes conducting Health Camps and Animal Health check-up cum treatment camps, Skill Development Training and various social awareness programmes for their clients.

Boosting Future Outlooks

From a non-descript microfinance institution to becoming a Small Finance Bank, RGVN (NE) MFL has, since then, traversed a long way, braving all hurdles and overcoming all challenges that come in their way. From a small NGO, they became a bank, an RBI regulated financial institution having over 4 Lakhs women clients under their realm, providing employment to around 1000 graduates from North East Region and thereby touching and helping over 2 million lives.

They have already received RBI’s nod for setting up 164 bank branches spanning across 9 states, including all the 8 states from North East and the state of West Bengal. They are now targeting to transform themselves into the leading Small Finance Bank from the North East. RGVN (NE) MFL shall now be the promoter of the Small Finance Bank, and it will be transformed into a CIC and all its assets and liabilities shall be transferred to NESFB by way of Slump sale. The net worth of RGVN (NE) MFL stands at Rs. 246 crore after having raised an equity amounting to Rs. 97.33 crore from SIDBI Venture Capital (Rs. 40 Cr), RNT Associates (Rs. 28.33 Cr), Pi Ventures (Rs. 20 Cr) and NMI (Rs. 9 Cr). Thereby gratifying the minimum equity criteria and thus making the Bank domestically owned with the ratio of domestic to foreign equity 52.16% and 47.84%.

Thus, as RGVN (NE) MFL progressively inch closer to charm as a Small Finance Bank. They are now emphasizing on developing a robust IT infrastructure which shall ensure the smooth functioning of their banking processes, strong policy framework which shall guide their operations, a dedicated team of professionals who can carry and uphold the reputation of the organization. Currently they are striving to yield it to greater heights along with a qualified and vibrant Board, which can escort the company organization as it steps into newer terrains and nurture it with their good governance.

Source :- The 10 Most Valuable Nonbanking Financial Companies