Grameen Koota Financial Services (IFC-35181)

Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 22, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Grameen Koota Financial Services
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 9, 2018

Disclosed by Bank May 16, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed investment envisages a senior debt investment in Grameen Koota Financial Services Private Limited (“Grameen Koota” or the “Company”) which is a Reserve Bank of India (“RBI”) registered non-banking finance company microfinance institution (“NBFC-MFI”) and has been in micro-credit operations since 1999. The Company operates in 5 Indian States across 71 districts through 298 branches and has a borrower base of around 1.2 million woman borrowers, a loan portfolio of INR1,800 million (approximately US$272 million equivalent). It is the 6th largest MFI (in terms of gross loans) in India as of December 2015. IFC’s proposed investment will help Grameen Koota to diversify its sources of funding and to expand the outreach of access to microfinance to borrowers who have little or no access to formal sources of financing.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

1. Access to Microfinance: This project will support the Company in expanding the outreach of access to microfinance to borrowers, especially low-income households, who have little or no access to formal sources of financing.
2. Balanced growth of Microfinance: This investment will promote a more balanced growth of microfinance in India. Grameen Koota''s operations are expanding in western and central India where MFI penetration has historically been low.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Grameen Koota has been promoted by Mrs. Vinatha Reddy and Mr. Suresh K Krishna. It was started as a micro-lending project in 1999 under the NGO, T Muniswamappa Trust and was subsequently converted into a NBFC in 2006-07. The promoters have been active in the developmental sector in India for more than two decades.

As of 31st December 2015, the shareholders of the Company include promoters (7.7%), CreditAccess Asia NV. (81.2%), Creation Investments Social Funds II (10.23%) and employees (0.87%);

CreditAccess Asia NV is a holding company incorporated in Netherlands with interests across several Asian microfinance institutions such as Grameen in India, One Puhunan in Philippines and Bina Artha in Indonesia and a minority interest in Equitas Holdings Limited in India. Its regional companies in Asia have a total portfolio of EUR 240 million with over 1.3 million clients.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Grameen Koota has been promoted by Mrs. Vinatha Reddy and Mr. Suresh K Krishna. It was started as a micro-lending project in 1999 under the NGO, T Muniswamappa Trust and was subsequently converted into a NBFC in 2006-07. The promoters have been active in the developmental sector in India for more than two decades.

Reserve Bank of India is registered non-banking finance company microfinance institution and has been in micro-credit operations since 1999.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Reserve Bank of India Parent Company -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

CONTACTS

Grameen Koota Financial Services Pvt Ltd,
#49, 46th Cross, 8th Block, Jayanagar,
Bangalore, Karnataka
India – 560071,
http://www.grameenkoota.org

Mr. Diwakar B R
mailto:diwakar@gfspl.in

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How it works