DemirBank, an Azerbaijani commercial bank that lends to small and medium-sized enterprises, recently announced that customers have the opportunity to repay loans at automated teller machines (ATMs) with their bank cards. DemirBank operates approximately 60 ATMs throughout the country. No service fees are charged for the transaction and borrowers can use a bank card issued from any bank. Customers can also repay their loans at any of the 700 payment terminals located in Azerbaijan.
For the year 2011, DemirBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 443 million, a gross loan portfolio of USD 336 million, deposits of USD 203 million, return on assets (ROA) of 0.58 percent, return on equity (ROE) of 4.46 percent, approximately 44,000 active borrowers and 33,000 depositors. DemirBank classifies 31 to 40 percent of its operations as microfinance.
By Brendan Millan, Research Associate
About DemirBank
DemirBank, a commercial bank in Azerbaijan, was established as Azjeldorbank in 1989 under license of the USSR State Bank. As of 2013, the European Bank for Reconstruction and Development (EBRD) and Netherlands Development Finance Company (FMO) together hold 35 percent of the bank’s stock. For the year 2011, DemirBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 443 million, a gross loan portfolio of USD 336 million, deposits of USD 203 million, return on assets (ROA) of 0.58 percent, return on equity (ROE) of 4.46 percent, approximately 44,000 active borrowers and 33,000 depositors. DemirBank classifies 31 to 40 percent of its operations as microfinance.
Sources and Additional Resources:
[1] DemirBank: “DemirBank Offers Customers to Repay Loans via ATMs”, http://www.demirbank.az/?/en/news/view/286/
MicroCapital.org story, February 7, 2012, “DemirBank of Azerbaijan to Borrow $8m from Microfinance Enhancement Facility, Co-Managed by responsibility”, https://www.microcapital.org/microcapital-brief-demirbank-of-azerbaijan-to-borrow-8m-from-microfinance-enhancement-facility-co-managed-by-responsability/
MicroCapital.org story, July 14, 2011, “responsAbility Loans $24m to Microfinance Institutions (MFIs) Inecobank, Agricultural Cooperative Bank of Armenia (ACBA), ACBA Leasing all of Armenia; Demirbank of Azerbaijan; Sekerbank of Turkey”, https://www.microcapital.org/microcapital-brief-responsability-loans-24m-to-microfinance-institutions-mfis-inecobank-agricultural-cooperative-bank-of-armenia-acba-acba-leasing-all-of-armenia-demirbank-of-azerbaijan-seke/
MicroCapital Universe Profile: DemirBank,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=DemirBank
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital Universe Profile: The Netherlands Development Finance Company (FMO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29
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