WHO'S WHO IN MICROFINANCE: Andhra Pradesh Mahila Abhivruddhi Society (APMAS)

The Andhra Pradesh Mahila Abhivruddhi Society (APMAS) was founded by Mr. CS Reddy (p5) in 2001 to provide technical support and consultancy services to Self-Help Groups (SHGs) in the Indian state of Andhra Pradesh. APMAS uses its connections to large transnational organizations, banks, and government policy makers to link each SHG to a range of resources. By monitoring and molding the operations of SHGs, APMAS attempts to systematize SHGs so that larger organizations can follow professional protocols in working with these small groups.

Mr. Reddy, the current CEO of APMAS, holds an M.Phil in Statistics and Operations Research and has over 18 years of experience working with such institutions as CARE International, the World Bank, Indian state governments, and numerous NGOs. APMAS’ partners include the state government and the National Bank for Agriculture and Rural Development (NABARD), an Indian bank designed to support rural economic development. Mr. BB Naik, the Chief General Manager of NABARD, and his colleague Mr. PV A Rama Rao are present on the 21-member Board of Directors. The Board also includes Mr. Kaki Madhava Rao, a former state Election Commissioner and APMAS Chairman. Representing the government initiative Society for the Eradication of Rural Poverty (SERP) are Ms. Peta Usha Rani and Mr. T. Vijay Kumar, SERP’s CEO. Ms. Rama Kanderpa, the Vice President of the livelihood promotion institution BASIX, is one of the non-government employees present on the board.

An SHG, which typically consists primarily of women, consists of 15 to 20 members who collectively build savings and credit. SHGs have steadily become more numerous and prominent in recent years. NABARD reports that by March 2006, 3.37 million SHGs (p1) in India were saving an average of USD 10 per month and that at the end of March 2007, USD 4.5 million worth of bank loans had been granted to SHGs in India. Rather than individual groups, APMAS serves SHG Federations, which are democratic bodies consisting of representatives from individual SHGs and which may have either financial or social goals. The total number of SHG Federations in India is thought to be 66,000 (p iii) while in Andhra Pradesh, there are 27,000 Federations at the village level encompassing 630,000 SHGs. Because APMAS focuses its activities on the state level, the latter figures represent the client base of the organization.

A bulk of APMAS’ activities is allied with government initiatives. APMAS devotes 50 percent of its resources to the state program SERP. Complete budgetary information for APMAS is not publicly available. The budget for the SERP’s SHG promotion program in 11 districts for a three year period from 2005 to 2008 was equivalent to USD 1,321,000 (p7). APMAS committed USD 330,330 to the program while SERP contributed the remainder of the budget as a grant to APMAS. APMAS also works with the government program Andhra Pradesh Urban Services for the Poor (APUSP) to reach SHGs based in towns. In 2006, APMAS proposed a budget of USD 33,160 to its joint program with APUSP in three towns. In terms of success, APMAS reports that over 90 percent (p4) of affiliated SHG Federations repaid bank loans that each averaged USD 200.

Although APMAS does not provide any financial services, it coaches SHG members in management tactics and capacity building, and links them to organizations that are able to provide financial and structural support. APMAS provides only fee-based services. A six day residential program including practical training and extensive feedback is offered to members of SHG Federations at the SHG Learning Center campus in the city of Hyderabad. Other services include an English-Telugu dictionary, electronic educational materials on microfinance, and supervised meetings. Out of a total of forty regular employees, two professional consultants are stationed in each of APMAS’ location to provide regular and specialized support to local federations. As of March 2006, 31,177 individuals have participated in APMAS training programs, including 2,686 staff members of government institutions. APMAS claims that its training materials have indirectly reached a total of 293,560 individuals.

Apart from its training programs, APMAS also offers professional assessments designed for the use of SHG Federations as well as prospective supporters. APMAS has created a comprehensive Quality Assessment called GRADES as well as Capacity Building Need Assessment, Rapid Quality Assessment, and the Critical Rating Index (CRI) , among others. GRADES, which costs USD 300, is an acronym for (G) Governance, (R) Resources, (A) Asset Quality, (D) Design of Systems & Implementation, (E) Efficiency & Profitability, (S) Services to SHGs and SHG performance. GRADES has been used to rate 333 Federations (p v) and the CRI, which was developed in conjunction with NABARD, has been used to rate 365,000 SHGs.

APMAS has also been financially supporting District Livelihood Resource Centers (DLRC), which were instituted by the government to develop career opportunities for rural citizens. DLRCs directly work with SHGs. As part of its research and advocacy activities, APMAS has launched the SHG Gateway, a web resource that includes job listings and consultant profiles as well as news and publications.

Currently, APMAS is active in eight districts and three towns within the state of Andhra Pradesh. APMAS also provides need-based support in other areas, including five other states in India. As a result, it is considered a national-level organization.

Additional Resources:

www.apmas.org

SHG Gateway

Society for the Eradication of Rural Poverty (SERP)

National Bank for Agriculture and Rural Development (NABARD)

“SHGs in India: An Interview with CS Reddy”, by A. De Montesquiou, 2007

“APMAS: Ensuring Quality in Self-Help Banking: An Assessment”, by Hans Dieter Seibel, Capacity Building International, July 2006

“SHG Federations in India”, published by APMAS, 2007

SERP-APMAS Partnership Agreement

By Goda Thangada, Research Assistant