The World Bank Report No: ISR10710 Implementation Status & Results India India: Scaling Up Sustainable and Responsible Microfinance (P119043) Public Disclosure Copy Operation Name: India: Scaling Up Sustainable and Responsible Microfinance Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 20-Jun-2013 (P119043) Country: India Approval FY: 2010 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): Key Dates Board Approval Date 01-Jun-2010 Original Closing Date 30-Jun-2015 Planned Mid Term Review Date 31-Dec-2012 Last Archived ISR Date 10-Sep-2012 Effectiveness Date 18-Aug-2010 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date 01-Apr-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to scale up access to sustainable microfinance services to the financially excluded, particularly in under-served areas of India, through, among other things, introduction of innovative financial products and fostering transparencyand responsible finance. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Scaling Up Funding Support for Microfinance Institutions 292.75 Strengthening Responsible Finance 3.75 Capacity Building and Monitoring Component 3.50 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Project implementation has progressed well. Disbursements stand at around US$155 million (52% of project amount), benefiting over 568,000 clients directly through project funding, with nearly 8o% of clients in financially under-served states. MFIs funded under the project have over 12 million clients, who have witnessed improved responsible finance practices that have been supported through the project. Project funds have been counter-cyclical given the tight liquidity conditions in the microfinance sector, although disbursements are now Page 1 of 5 The World Bank Report No: ISR10710 slightly lagging behind original projections. While implementation has gone broadly according to plan, a few activities need to be expedited such as the launch of the Microfinance Information Platform and efforts at sustaining disbursement levels may be needed in view of the overall continuing liquidity constraint in the microfinance sector. Locations Public Disclosure Copy No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Disbursements of loans by beneficiary MFIs to Number Value 1.00 27.90 4.00 their clients relative to the amounts of financing Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 borrowed from SIDBI Comments Percentage of project funding (debt) for clients Number Value 0.00 84.00 35.00 in under-served areas Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Comments Percentage of portfolio managed by beneficiary Number Value 0.00 91.00 60.00 MFIs with OSS of 100% Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Comments Percentage of beneficiary MFIs reporting to the Number Value 0.00 0.00 75.00 information platform Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Comments Information platform has not been started as yet though launch is imminent. Most funded MFIs already report to the MixMarket, the globaldata collection and reporting initiative for microfinance, which will take the lead in creating the platform. Launch Public Disclosure Copy is expected by June 30, 2013 Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR10710 Indicator Name Core Unit of Measure Baseline Current End Target Growth rate of outstanding funding (including Number Value 0.00 -50.00 50.00 senior debt, sub-debt, equity) of SIDBI to Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Public Disclosure Copy MFIs, relative to baseline [SIDBI level] Comments Rs 38 bn is SIDBI's There has been a sharp outstanding funding (debt contraction in overall terms on and equity) account of the extraordinary situation in AP. Slow recovery reversing this trajectory is expected. Percentage of beneficiary MFIs undertaking a Number Value 0.00 90.00 75.00 CoC Assessment Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Comments Some assessments are commissioned an underway but not yet completed. Completion is expected soon. Lenders' Forum is institutionalized with a Text Value Lenders' Forum not Lenders Forum Established Increased adoption of mandate of promoting responsible finance formalized standards by lenders amongst funded MFIs Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Comments The 12 lenders account for an estimated 80% by volume of all banks lending to MFIs. Covenants on responsible finance have been agreed. Implementation capacity of SIDBI is Text Value SFMC action plan for capacity Capacity building underway Action plan 100% complied strengthened, as necessary Sub Type building drafted with Breakdown Date 31-Mar-2010 31-Mar-2012 31-Mar-2015 Comments Action plan being drafted for further activities - part funding from other donors supporting this Public Disclosure Copy Percentage of the portfolio managed by Number Value 0.00 100.00 80.00 beneficiary MFIs with maximum PAR above 90 Date 31-Mar-2010 24-Mar-2012 31-Mar-2015 days under 5% Comments Based on a representative sample of beneficiary MFIs (project MFIs have not suffered the fate of AP MFIs or many other MFIs that are facing sharply declining recovery) Total active loan clients of beneficiary MFIs Number Value 0.00 12000000.00 4000000.00 Page 3 of 5 The World Bank Report No: ISR10710 Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Comments Based on the sample of beneficiary MFIs Public Disclosure Copy Volume of Bank Support: Lines of Credit - Amount(USD) Value 0.00 155.00 290.00 Microfinance Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Comments Volume of Bank Support: Institutional Amount(USD) Value 0.00 0.15 3.50 Development - Microfinance Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Comments in million dollars Volume of Bank Support: Enabling Amount(USD) Value 0.00 0.05 3.75 Environment - Microfinance Date 31-Mar-2010 31-Mar-2013 31-Mar-2015 Comments In million dollars Data on Financial Performance (as of 28-Mar-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P119043 IBRD-79230 Effective 01-Jun-2010 09-Jul-2010 18-Aug-2010 30-Jun-2015 30-Jun-2015 P119043 IDA-47540 Effective 01-Jun-2010 09-Jul-2010 18-Aug-2010 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P119043 IBRD-79230 Effective USD 200.00 200.00 0.00 60.75 139.25 30.00 P119043 IDA-47540 Effective USD 100.00 100.00 0.00 94.64 9.29 95.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR10710 Public Disclosure Copy Key Decisions Regarding Implementation While significant progress has been made on various actions that promote responsible finance, SIDBI agreed to launch the India Microfinance Platform shortly. On broader sector wide developments, SIDBI agreed to discuss and follow up on suggestions made during the last implementation support mission, including further exploring interest rebates based on responsible finance performance and dissemination of survey results. Restructuring History Level two Approved on 26-Mar-2012 Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5