MUMBAI: With an aim to incubate and support newer models for the microfinance industry, India‘s second largest bank ICICI Bank is putting in an integrated support structure which would be capable of offering to entrepreneurs “from an idea to an organisation”.This will be in partnership with the Centre for Microfinance at the Institute for Fundamental Management and Research (IFMR) in Chennai. “From facilitating seed capital, operating models, human resource training, product development and technology solutions, this structure envisages to provide all the building blocks required for MFI’s”, ICICI Bank Deputy Managing Director Nachiket Mor said.This structure could also facilitate equity support through various investors which can be utilised to fund entrepreneurs in the industry. The factory will be led by Anil Kumar S.G.ICICI Bank, for the last four years has been a leader in the microfinance industry with its innovative partnership model. The Bank has a micro-loans portfolio of about Rs 2121 crores as of March 31, 2007 through 210 MFI partners in 21 states of the country.Under the partnership model, the bank forges an alliance with an MFI, wherein the latter dons the promotional role of identifying, training and servicing microfinance clients, and the bank finances the clients directly, based on the recommendations of a given MFI. The MFI also shares a part of the credit risk, along with the bank. Taking it a step further, ICICI Bank has also supported the development of a franchisee model by Intellecap and CASHPOR, a leading MFI organisation. This model named Intellicash, provides mentoring and support systems for start-up MFI’s for a fee.“For the entrepreneur this franchise model reduces the time to market and break-even since the franchisor supports the entire start-up process. The model will also facilitate creation of MFI’s in newer and underserved geographies.” Mor said.Source: Daily News & Analysis (www.dnaIndia.com) http://www.dnaindia.com/report.asp?NewsID=1096514b
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