Annual Report 2015 - Damen Support Programme

Annual Report
2015
Annual Report
2015
"Broadening Horizons for Economic Development”
Vision
Sustainable development through financial
inclusion
Mission
Taking measures for social and economic
uplift of the marginalized, with focus on
women, to enhance their economic
prosperity & self-reliance through financial
inclusion & capacity building
Message from the CEO
The year 2015 was a landmark of our history during which the Micro Finance Operations of DAMEN were
spun-off into a separate legal entity Damen Support Program with the vision of “Sustainable
Development through Financial Inclusion”.
Operationally, the six months ending June 2015 was a period of great inspiration for DSP as key
indicators in the economic sector have improved significantly over past few years including the average
outstanding loan portfolio which increased by 34%, operational self-sufficiency increased to 138% from
128% and Portfolio At Risk [> 30 Days] fell to 0.6% from 1.6%.
With a network of 25 field offices, 5 area offices and a head office and active client base of 43000
women, the health insurance scheme for its clients and their spouses has completely being revamped
by Damen Support Programme. It will now cover nearly 86,000 individuals and provide financial
assistance in cases of medical distress. Our branchless banking initiative, which was launched two years
ago, is now mature with more than 90% of our clients availing this facility.
During the next year, DSP intends to pilot Sharia compliant micro financing and increase its outreach by
adding five new branches to its existing network of 25 branches. The new branches will add an
estimated 8,000 new clients to the DSP family thereby taking to total number of clients to around
50,000.
Along with this an extensive program pertaining to various skill and technical trainings has been
designed and implemented for our women clients to improve upon their income generating capacity.
DSP also plans to take initiatives of vaccination and medication of the Live Stock of the clients
commencing from 2015. This will increase the milk production of the animals, resulting in an increase in
income of the clients, artificial insemination of the animals of our clients to produce better breed animals,
health Insurance facility will be extended to the children of the clients without charging extra cost from
the client, cash over the counter facility shall be provided to the clients for loan disbursements which will
reduce their cost of travelling to the field offices and also save their time and in order to determine
recovery terms client satisfaction survey will be done periodically and in the light of the findings, the
changes will be made accordingly. Currently the recovery period is flexible as per the client demand
and capacity which ranges from 12 to 18 months.
Board of Directors of DSP has taken a strategic decision to increase the sources of funds for our
microfinance program. In line with this decision, we will aggressively look towards commercial banks
and international fund providers along with Pakistan Poverty Alleviation Fund and other investors.
As always DSP, gratefully acknowledges the support received from its Board of Directors, Pakistan
Poverty Alleviation Fund, Pakistan Microfinance Network, State Bank of Pakistan, philanthropists,
congruent institutions and many other well-wishers for which I am forever thankful.
In line with its mission of providing financial services to needy women entrepreneurs, DSP pledges that it
will keep striving to introduce new initiatives, improve existing services and play its role in uplifting our
economically challenged compatriots out of poverty.
Naghma Rashid
CEO/ Executive Director
About Damen Support Program (DSP)
The roots of Damen Support Programme lie in a non-profit NGO – Development Action for
Mobilization and Emancipation (DAMEN) – set up in 1992, under Societies Registration Act,
XXI of 1860. DAMEN started its operations with aim of working for alternative development
at grass-root level in Pakistan. It was an alliance of social scientists, philanthropists and
professionals from various fields having significant experience of working with NGOs locally
and internationally.
DAMEN initially started by focusing on the role and development of women & children in
local communities; the programs being run were:
Home School Education Program
Industrial Home for Women
Entrepreneurship Development Program
By continuously assessing the need of community DAMEN initiated the micro credit
program in 1996, to help women foster economic activities in their communities.
In 2014 DAMEN transformed its Micro Finance Program into a separate legal entity by the
name of Damen Support Programme (DSP). This step has been taken to concentrate on
DAMEN's economic sector initiatives, increase focus on financial inclusion, improve
transparency, and strengthen access to commercial funds, donors and investors. . DSP is a
not for profit entity, registered under section 42 of the Companies Ordinance 1984 with the
Securities and Exchange Commission of Pakistan (SECP).
DSP concentrates on the social and economic uplift of communities, with an exclusive
focus on the empowerment of women of marginalized communities with the following
objectives;
To take measures for social and economic uplift and empowerment of marginalized
communities, especially in rural areas and urban slums, to enable them to enhance
their capacity for income generation to eradicate the real and most tangible
problems for their sustainable development by initiating/implementing programs
including micro credit, vocational training and capacity building of communities.
To concentrate on activities for integrated self-reliant and long-term development
of the communities through various programs of poverty alleviation.
To enhance the cause of women development by initiating programs for income
generation and awareness of their legal and basic rights.
To train and support human resources for devising, Implementing and overseeing
development projects and programs.
DSP adopts a four-pronged strategy to achieve its overall objectives;
1. Micro-Credit
2. Health and Life Insurance services
3. Training, Capacity Building and Skill Development of Community Action Groups
4. Research, Networking and Linkages
Table of Contents
Core Values 01
Highlights of the Year 02
Organization Information 03
Board of Directors Damen Support Program 04
Board Committees 04
Division of Resources after spin-off 05
Case Studies
Rubab Bibi 07
Shaheen Akhtar 09
Shehla Ilyas 11
Ghulam Fatima 13
Hameeda Bibi 15
Microfinance Programme - An Intervention In Sustainable Development 16
DSP's Microfinance Products and Services 17
Micro Credit 17
Insurance 17
Outreach 18
Clients Breakdown 19
Average Loan Size and Average Loan Balance 20
Clients' Business Breakup 20
Loan Portfolio 22
Operational Self Sufficiency (OSS) 22
Complaints Resolution 23
Branchless Banking 23
Establishment of Communication and Marketing Department 23
Building Capacities 24
Institutional Level Trainings 24
Trainings on Appraisal Techniques & Cash Flow 24
Trainings on Loan Portfolio & Delinquency Management 25
Orientation of New Field Staff 25
Community Level Trainings 27
Skill Development Training Program (SDTP) 27
Stitching Course 27
Beautician Course 28
Course on Handicrafts 28
Cooking Course 28
External Trainings for Staff 29
Junior Professionals (JPs) Program 29
Networking & Linkages 32
Donation for Flood Relief 34
Annual Function & Women Rights Day Celebration 36
Damen’s Staff 38
DAMEN SUPPORT PROGRAMME
Core Values
Teamwork
DSP believes in teamwork to get more effective, well-organized,
thoughtful and faster results.
Empowered Staff
DSP believes in giving its staff a certain degree of autonomy and
responsibility for decision-making regarding their specific
organizational tasks.
Balanced Decision
DSP is committed to promote and facilitate the process of
development of under privileged communities by facilitating fair and
consistent decisions.
E ernal Involvement and Partnership
DSP believes in promoting and achieving its development goals
through establishing partnerships and initiating teamwork with
different stakeholders.
Innovation and New Approaches
DSP challenges itself and others to develop new and better
approaches to achieve the goals of development
Improved Services
To ensure the customer satisfaction, DSP is continually striving to
improve its services.
01
Highlights of the Year
Outreach and Access
Districts
6
Union Councils
290
Villages
946
Active Clients
43,106
Amount Disbursed
Rs.866,510,000
Total Lives Insured (Health Insurance)
100% clients & their Spouses
Total Lives Insured (Life Insurance)
100% clients & their Spouses
Gender Indices
Total Staff
224
% of Female Staff at Field Level
37%
% of Female Staff at Head Office
31%
% of Female Board Members
36%
Financial Performance
Operational Self-Sufficiency
140%
Financial Self Sufficiency
135%
Portfolio at Risk > 30 Days
0.61%
Write-Off Ratio
0.50%
DAMEN SUPPORT PROGRAMME
02
Organization Information
Head Office (Lahore)
26-C, Nawab Town Raiwind Road, Lahore
Tel: +92-42-35310471-2, Fax: +92-42-35310473
URL: www.damensp.com, E-mail: [email protected]
Area Offices
Area Office 1 (Niaz Baig)
96 Saif Town Near Mangal Bazar Street
Thokar Niaz Baig, Multan Road, Lahore.
Area Office 2 (Maraka)
Kamboh House Adda Loharaan
Wala Khooh, 26 km Multan Road,
Lahore.
Tel: +92-42-35451854
Area Office 3 (Begum K )
H # 710, St # 3, Mian Colony
BegumKot, Lahore.
Tel: +92-42-37914744
Area Office 4 (Jamber)
Habib Building & Material Store
Jamber Adda, Near Motorway Police Office,
Tehsil Pattoki, District Kasur.
Area Office 5 (Nankana)
H # 4, Railway Road Piple Wala Chowk
Near Ghala Mandi, Nankana Sahib.
03
Board of Directors Damen Support Program
Mr. AHSAN RASHID
Mr. BILAL AHMED KHAN
Chairman
Director
Mrs. ZAREEN NIAZI
Mr. ADNAN AFAQ
Director
Director
Ms. SYEDA SHEHRBANO KAZIM
Mr. SHAHID WAQAR MEHMOOD
Director
Director
Ms. NAGHMA RASHID
Mr. IMRAN. K. NIAZI
CEO
Director
Ms. ZARINE AZIZ
Mr. WASEEM AHSAN
Director
Director
Board Committees
Finance Committee
Mr. Ahsan Rashid
Ms. Zarine Aziz
CEO
Mr. Shahid Waqar Mehmood
Chief Accountant
Operations/ Human Resource Committee
Mr. Imran K. Niazi
Ms. Zareen Niazi
COO
Ms. Zarine Aziz
Mr. Shahid Waqar Mehmood
G.M Operations
Audit & Compliance Committee
Mr. Waseem Ahsan
Ms. Zareen Niazi
Mr. Ahsan Rashid
Manager Internal Audit
Risk & Strategy Committee
Mr. Imran K. Niazi
Mr. Ahsan Rashid
Manager Risk
Mr. Waseem Ahsan
CEO
Compensation Committee
Mr. Ahsan Rashid
Ms. Zarine Aziz
DAMEN SUPPORT PROGRAMME
Mr. Shahid Waqar
04
Division of Resources after spin-off
After registering DSP, DAMEN divided its assets, liabilities and staff amongst the two
entities to ensure the long term goal of sustainable development. The transformation of
DAMEN Microfinance Program into DSP presented numerous challenges that were dealt
through strategic planning, and sound legal advice for two entities. Immediate steps taken
after the spin-off were;
Agreements with Pakistan Poverty Alleviation Fund (PPAF) were transferred to
DSP.
Entire Microfinance Program staff was transferred to DSP while Social Sector
Program's staff remained the part of DAMEN.
The staff transferred to DSP signed No Objection Certificates (NOCs) to show their
consent for transfer in DSP.
New posts were created to improve the performance of DSP.
“Communication and Marketing Department” was established at Head Office level
to introduce demand driven products and develop effective strategies to compete
the market of microfinance.
05
Rubab Bibi
Forty five year old Rubab, a resident of Lahore Johar Town, was very satisfied of her life before her
marriage. She was a Lady Health Visitor (LHV) diploma holder and doing job in Iqra Hospital (near Jinnah
Hospital). She could not continue her job after marriage as her in-laws and husband were not in favor of
it. The time was passing on smoothly and favorably but one day, after five months of her marriage, the
situation was suddenly changed when Rubab's husband entered home in drunken condition and
started abusing her. It was the beginning of Rubab's misadventure, later on it became a routine matter
for her husband to drink and abuse her. Initially he squandered his saving in debauchery and afterwards
started torturing her for money. Rubab used to fulfil his demands by selling her jewelry and borrowing
from relatives. One of the relatives of Rubab suggested her to send her husband to Muskat to win him
back from addiction. She did so in the hope of good days but all her hopes were dashed when she
received a call about her husband's accident in Muscat. At that time she immediately arranged four lac
rupees, by taking loan from her relatives, to send in Muscat for her husband's treatment. But just after
fifteen days of the incident her husband was back with no injury. Then she realized that her husband
had tricked her. Just after a few days he again started abusing her but she tolerated all for her child.
When water crossed over her head her well-wishers suggested her to demand divorce from her
husband. On her demand her husband unwantedly divorced her but refused to pay the loan amount.
Now Rubab had to face more hardship in life as she had no source of earning while people were
demanding their loans. Rubab started stitching to overcome the crisis but her earning was not sufficient
to meet her requirements. Then Rubab on the advice of a community female applied for loan from
DAMEN. From the first disbursement she bought some raw material and did her own designing. She
also did door to door marketing of her production (in the areas of Johar Town and Faisal Town) by
herself. In the beginning she faced difficulty in motivating customers to purchase her designs but she
didn't leave the courage and continued her efforts. In the result of her efforts she earned profit and
started saving, here DAMEN's training on Maali Bachhat helped her in increasing her business.
At present Rubab has two sale points and one factory unit where four workers and one master prepare
designs according to her instructions while nearly 30 females in Multan do hand embroidery, crochet
and applique work for her. Rubab is fully confident of getting a contract from Dubai within this year.
Rubab is now quite satisfied of her work as she is earning a handsome amount monthly and is capable
of successfully managing the health & education expanses of her family, as her two unmarried sisters
and a younger brother are also her responsibility after the death of her father. Talking about the future
strategy Rubab said, “I want to get name and fame regarding my work and for the purpose I desire to
organize a fashion show.”
07
Shaheen Akhtar
Shaheen Akhtar's husband was a Hafiz-e-Quran and used to earn his living by teaching Quran. His
income was too meager to meet the needs of their family. Although it was a daunting task to make
ends meet in this meager amount yet Shaheen tried to manage it by somehow. But the situation
was worsened, four year ago, when a paralysis attack disabled her husband from doing any job. It
was the time of great desperation for Shaheen as she had no money to feed her children. There
was no ray of hope but Shaheen did not lose heart. She was an educated woman and had
experience of teaching in a private school before her marriage. She could not continue this
profession, despite of the fact that teaching was her passion, after marriage because her husband
and in-laws didn't allow her to go out for teaching. Now she thought about getting the benefit of
her education and relevant experience of teaching because there was no other option. She didn't
want to see her children dying of hunger.
She took initiative by starting a coaching center in her home. Initially she could earn very limited
amount but it was raised gradually with the increase in number of students. This increase in
number of students encouraged her to convert the coaching center into a school but she had no
financial resources. Shaheen was already aware of micro credit services provided by Damen
Support Programme (DSP). So she got a loan to purchase benches and other material for the
school. She utilized a room of her house for school and also provided refreshment items to the
students at school premises. Sale of eatables also augmented her income. Shaheen started from
15 students raised up to 100 students.
After completing first loan cycle Shaheen took further loans to increase her business. Currently
Shaheen has taken the loan of Rs.60,000 to reconstruct the building of her home. She has
converted the lower portion of her home into school and hired six teachers to assist her. She is
now very satisfied with her life because DSP has not only fulfilled her desire of teaching but also
helped her in earning a reasonable amount to provide basic necessities of life to her family.
Although I had the experience of teaching but it was not possible to me to manage my home from the meager amount in the
name of salary. DSP has financially empowered me not only to manage my home but also enabled me to play effective role in
the development of society by educating the children of my community, says Shaheen.
09
Shehla Ilyas
Shehla Ilyas is living in Sharqpur with her parents. She is a graduate and wanted to do some job for
better utilization of her education. But her parents forbade her from looking for a job because of
their so called social taboos and traditions. Shehla was much disheartened when she met her aunt
who was a Lady Health Visitor (LHV) and just retired from Government job. She was interested in
starting a private health care center in the locality. She offered Shehla to join her in her business.
Shehla requested her parents for the permission. Primarily they were reluctant but later on, forced
by Shahla's determination, they allowed her to join her aunt in her business.
Shehla was very happy as she had gotten an opportunity not only to earn but also to play her role in
social development. In the beginning she did the public dealing and got experience by assisting her
aunt in delivery cases. In return she got a limited amount of Rs.3,000 as salary later on, after getting
the experience of dealing the delivery cases independently, she asked her aunt to convert her job
into partnership. Her aunt asked her to invest some money in the business but she had no saving. In
the meantime one of her clients told her about the microfinance services of Damen Support
Program (DSP). Shehla didn't want to take the help of her parents so she decided to contact DSP.
In June 2009 she got first loan of Rs.10,000 from DSP and became a partner of her aunt in her clinic
by purchasing some equipment for clinic. Although her partnership was just 30% but it increased
her monthly income from Rs.3,000 to Rs.7,000. After completing her first loan cycle with DSP she
took further loan and became a 50% partner with her aunt. Recently she is able to earn Rs.25,000 to
Rs.30,000 monthly. She has hired two more employees in her clinic. In April 2015 she got 5th loan of
Rs.60,000 to purchase an ultrasound machine. She says, “By utilizing this technology we can not
only treat our patients in a better way but can also increase our income up to Rs.40,000 to
Rs.45,000” per month.
“Our so called social taboos and traditions confine majority of our females from effective utilization of their skills and
abilities. Provision of favorable opportunities to those females n only increases their familial sustainability but also
necessary for increasing the country's economic sustainability” Says Shehla.
Shehla is very thankful to DSP for empowering her to spend an independent life. Talking about her
future plans she says, “I want to hire the services of a gynecologist to provide my clients better
health facilities and prevention from maternal deaths”. She further says, “The effect of a mother's
death results in vulnerable families and their infants, if they survive childbirth, are more likely to die
in their childhood”.
11
Ghulam Fatima
Ghulam Fatima opened her eyes in a very poor household and found her parents always struggling
to make both ends meet. But all their efforts remained unsuccessful to provide even two meals to
their family and they often had to sleep hungry. Ghulam Fatima lives in Nankana Sharif with her
parents and other family members. Her father was a driver and what he earned was not enough to
provide sufficient health and nutrition facilities to his family. Fatima always found her mother
worried about the situation. This permanent stress made her mother a patient of tuberculosis.
Despite knowing the fact that she had become the victim of a fatal disease, she didn't spend money
on her proper treatment as she had to look after her children and marry her four daughters. She
saved a little amount from her expenses daily and married her two daughters. But their marriages
further increased her problems as their in-laws were very demanding. In the meantime death of
Fatima's father was a great shock for her family and it multiplied their problems by leaving them
helpless with no alternate source of earning.
Fatima always desired to reduce the difficulties of her mother and death of her father provoked her
to take some immediate step to actualize her desires. Fatima was skilled in the work of salma sitara
(fancy embroidery) and she decided to utilize her skill for earning. She started embroidery of
dresses for local females. The income received through this work was not enough but it helped her
mother to bear some basic expenses. Fatima and her family were at the peak of their financial crisis
when one of her community members told her about Damen Support Programme (DSP). She
contacted DSP to apply for loan and DSP gave her the first loan of Rs.35,000 after completing its
procedure. From the loan amount she purchased raw material (cloth, thread, and other fancy
material) to prepare embroidered dresses to sale in the community. Her mother helped her in this
work and joint efforts of both resulted in the provision of reasonable amount to keep body and soul
together.
Now Ghulam Fatima seems quite satisfied as she is capable of providing basic necessities to her
family, bearing the expenses of her mother's medical treatment and the education of her two
brothers. She is also imparting the embroidery skills to her younger sister to involve her in this
business for further improvement in their financial condition.
“Financial support given by DSP has saved me and my family from drowning into the ocean of poverty”
says Ghulam Fatima
13
Hameeda Bibi
Hameeda Bibi is living in Maraka along with her five kids (three sons & two daughters) and husband.
Her husband was a truck driver and his earning was hardly enough to support his family. Due to his
meager income Hameeda was unable to provide better nutrition and education facilities to her
family. Hameeda was managing the home by one way or another but the situation worsened after
her husband had to leave his job due to diabetes and weak eyesight problem. It was the time when
Hameeda had no source of income except a cow and a calf, she had to manage the home with the
income received through the sale of milk. Hameeda was very depressed and wanted to do
something to improve her life. This was the time when she heard about Damen Support program
(DSP) and considered it a great opportunity to get the loan with easy repayment installments
without any collateral requirement. She approached DSP for loan and DSP disbursed her first loan
in November 2008. After taking loan Hameeda also sold her calf and from the collective amount
purchased another cow. It multiplied her income by increasing the quantity of milk. She started
saving on daily basis to repay the installments.
After completing her first loan cycle with DSP she took another loan and purchased one more cow.
At present Hameeda is DSP's client of sixth loan cycle and during the whole period she didn't leave
the habit of daily saving. Now she has five cows and her husband and two sons help her in this
business of livestock by looking after the animals and selling the milk. Hameeda is now capable of
earning Rs.35,000 to Rs.40,000 monthly while a newly constructed home and a 13 marlas plot
owned by her is the reflection of her financial sustainability.
Hameeda appreciates the support she receives from DSP and plans on borrowing more cows in
the future and continuing to expand her business of livestock.
“It is only by the grace of Allah and my continuous endeavor with the help of DAMEN Support Program, I can
afford to lead a comfortable life now” says Hameeda.
15
Microfinance Programme
An Intervention In Sustainable Development
Microfinance is to supply micro credit to people living in utter poverty and having no access
to the formal financial products. Microfinance aids to engage these people in productive
activities and grow their businesses. Micro financial program plays vital role in increasing
women's participation in economic activities and decision making. These programs are
generally applied in rural surroundings as these areas are in greater need to increase their
living standards.
DAMEN from its very inception focused on empowering the women of marginalized
communities. For this purpose it has adopted different strategies that make holistic
contributions to women's empowerment. These include; business training, discussion of
social issues, support and advice for balancing family and business responsibilities,
experience in decision making and leadership. DSP continuing the implementation of
DAMEN's strategies with a firm belief that women's economic contribution to the
household and community plays a major role in empowering them. DSP not only
empowers the women but also plays important role in decreasing the poverty rate through
self-employment.
DSP is working with a mission to take measures for social and economic uplift of the
marginalized, with focus on women, to enhance their economic prosperity & self-reliance
through financial inclusion & capacity building.
DSP has given prime importance to make its microfinance program financially viable and
sustainable. Sustainability of the program is ensured with the vertical mobility of the
individuals borrowers along with the horizontal expansion of the program. DSP is currently
providing its microfinance services in 290 union councils and 946 villages of district Lahore,
Sheikhupura, Kasur, Okara, Nankana Sahib and Faisalabad.
DSP has adapted following strategies of DAMEN to maintain its portfolio quality:
1.
2.
Each field office maintained a client base of 1700-1800 clients per office and 425
clients per loan officer. Loan cycles ranged from PKR 35,000 to PKR 75,000.
By maintaining the client base at a higher level, cost per loan was minimized.
To improve upon yield of GLP early recovery (recovery before due date) imposed by the
field office was restricted (For example, DSP will not seek repayments before 30 days after
disbursement).
DAMEN SUPPORT PROGRAMME
16
DSP's Microfinance Products and Services
Unemployment is one of the many reasons of poverty and goal of sustainable
development cannot be achieved without overcoming this issue. DSP is playing a pivotal
role in eradicating unemployment by giving loans to females who are already involved in
some business and want to expand their business activities. Each business represents at
least one self-employment job while expansion of business often results in employing one
or more other persons resulting in an overall increase in the employment rate leading
towards the decrease in poverty rate. DSP offers following products to its clients;
1. Micro Credit
2. Micro Insurance
Micro Credit
DSP is providing micro loans ranging from Rs.35,000 to Rs.75,000 for the duration of 12 to
18 months to women belonging to poor and marginalized segment of society. By providing
these loans DSP is also playing an effective role in achieving the United Nations'
Millennium Development Goals (MDGs) of improving the welfare of the world's neediest
people, reducing hunger & poverty and empowering women. Access to financial services
not only enables poor women to increase their household incomes by undertaking
income generating activities but also helps them in building assets and reducing their
vulnerability to the crises that are so much a part of their daily lives. Access to financial
services also translates into better nutrition and improved health outcomes, such as higher
immunization rates. It allows poor people to plan for their future and send more of their
children to school for longer. It has made women clients more confident and assertive and
thus better able to confront gender inequities.
Insurance
DSP insures all its clients to make them self-reliant and to share their burden in case of any
unforeseen occurrences. Health Insurance facility provides Rs.1,000-2,000/day hospital
bed charges depending upon the client's condition, whereas Life Insurance provides
funeral expenses and cancelation of outstanding loan in case of client or her spouse's
death. During the reporting period total 43,106 clients and their spouses were insured
under health insurance and life insurance policies.
17
Outreach
DSP has a total of 25 branches operating in four districts in Punjab. They are as follows:
Lahore
Sheikhupura
Kasur
Nankana
Area I
Area II
Area III
Area IV
Area V
Niaz Baig
Maraka
Begum Kot
Phool Nagar
Nankana Sahib
Chung
Halloki
Sharqpur
Jamber
Shahkot
Bhola Gari
Shamke Bhattian
Dhamke
Chunian
Bucheki
Shahpur
Manga
Rachna Town
Pattoki
More Khunda
Raiwind
Muridke
Habibabad
War Burton
Ali Razabad
DAMEN SUPPORT PROGRAMME
18
Client Breakdowns
DSP tries to introduce client friendly products in the market to attain the maximum
satisfaction level of its clients. Increase in satisfaction level helps the organization in
developing long term and sustainable relationship with its clients. The graph 1 shows that
ratio of repeat clients is always greater than new clients, 78% in 2011, 67% in 2012, 72% in
2013, 66% in 2014 and 60% in 2015, making the average 69% increase during the last five
year reflecting the clients' trust on DSP. The satisfaction level is also reflected in the gradual
increase in the ratio of active clients during the reporting period. Total 31,063 clients were
disbursed in 2011, 35,065 in 2012, 35,185 in 2013, 38,063 in 2014 and 43,106 clients were
disbursed in 2015. There was an average 39% increase in disbursed amount during the last
five year.
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
43,106
31,063
9%
35,065
35,185
12%
15%
2011
16%
17%
44%
55%
57%
33%
28%
2012
2013
69%
22%
38,063
Mature (5+ Cycles)
Repeat (2-4 Cycles)
49%
34%
2014
39%
2015
Active Clients
Fresh
Graph1: Showing Active Clients with their Loan Cycles
During the year 2015 total 9,187 clients were disbursed in Area I, 9,297 in Area II, 9, 341 in Area
III, 8,409 in area IV and 6,872 clients were disbursed in Area V.
19
Average Loan Size and Average Loan Balance
Majority of our clients are repeat clients and this repetition results in increasing the average
loan size ultimately increasing the average loan balance as shown in graph 2.
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
43,827
42,614
35,660
30,857
26,355
24,616
26,231
21,331
18,944
14,799
2011
2012
Average Loan Size
2013
2014
2015
Average Loan Balance
Graph2: Showing increase in Average Loan Size and Average Loan Balance
Clients' Business Breakup
DSP provides loans to the females already involved in some business and interested in
expanding their business activities. Majority of DSP clients are involved in trade and
business followed by livestock, handicrafts and tailoring respectively. Graph 3 shows a little
difference in the percentage of these categories during the last five year. During 2015 total
57% loans were utilized for trade & business, 22% for livestock, 5% for handicrafts and 16%
loans were utilized for tailoring.
100%
12%
11%
14%
16%
09%
07%
05%
05%
14%
15%
18%
17%
63%
64%
64%
64%
57%
2011
2012
2013
2014
2015
13%
80%
09%
22%
60%
40%
20%
0%
Trade & Business
Live Stock
Handicrafts
Graph3: Showing Clients' Business Breakup
DAMEN SUPPORT PROGRAMME
20
Tailoring
Loan Portfolio
During the last five year period outstanding loan portfolio of DSP has a continuous increase while
the graph of PAR>30 days ratio moved downward ultimately reducing the write-off ratio. Amount of
OLP was Rs.459,313,993 in the year 2011, Rs.664,280,742 in 2012, Rs.750,529,627 in 2013,
Rs.1,003,159,929 in 2014 and Rs.1,130,722,926 in 2015. Ratio of PAR>30 days was 2.0% in 2011, 1.9% in
2012, 1.6% in 2013, 0.8% in 2014 and 0.6% in 2015 while write-off ratio was 4% in 2011, 1.7% in 2012, 2.3%
in 2013, 1.2% in 2014 and 0.50% in 2015.
4.0%
1,250
4.0%
3.5%
PKR IN MLN
1,000
1,003
750
2.0%
500
1.9%
1,130
0
1.5%
1.2%
1.7%
1.6%
459
664
750
0.8%
2011
2012
2013
2014
Outstanding Loan Portfolio
2.5%
2.0%
2.3%
0.6%
250
3.0%
0.5%
PAR> 30 days
2015
1.0%
0.5%
0.0%
Write-off Ratio
Graph 4: Showing Increase in OLP and Decrease in PAR>30days & Write-off Ratios
Operational Self Sufficiency (OSS)
A continuous increase in OSS ratio reflects the increasing growth and sustainability of DSP as
Operational Self-sufficiency is a situation in which an organization generates sufficient revenues
from clients to cover all of its operational costs. The growth of an organization can be assessed by
analyzing its operational self-sufficiency as it indicates whether or not enough revenue has been
earned to cover the MFI's direct costs, excluding the (adjusted) cost of capital but including any
actual financing costs incurred. Graph 5 shows a continuous increase in OSS ratio.
140
OSS %age
120
100
120
128
2012
2013
137
140
2014
2015
103
80
60
40
20
0
2011
Graph 5: Showing an increase in OSS Ratio
DAMEN SUPPORT PROGRAMME
22
Complaints Resolution
DSP's complaint cell is active to provide highest quality of services to its clients. This cell
works under the supervision of Risk Management Department and addresses the
grievances of clients timely and effectively. During the reporting period this cell received
38 complaints and all were resolved.
Branchless Banking
DSP clients are most valuable and provision of ease and comfort to them at every level is
DSP's foremost priority. To promote affordable and cost-effective delivery mechanism for
its loan products, DSP introduced branchless banking facility to its clients in order to
facilitate them in paying back installments easily. Recently almost 87% clients are paying
their installment by using this facility. Keeping in view the increasing trends of branchless
banking and to benefit the maximum number of its clients, DSP has also included
Mobicash in its branchless banking service providers. DSP was already facilitating its
clients through OMNI, NADRA and Easy Paisa's services.
Establishment of Communication and Marketing Department
Like all other businesses, success of microfinance institutions also lies in customer
satisfaction. With this belief DSP has established a Communication and Marketing
Department at Head Office level during the year 2015.
In the intense competitive market, Communication and Marketing Department at DSP
tends to persuade potential customers to select DSP's products and services. DSP
believes that effective communication and marketing strategies lead to attract and
capture maximum number of target audience.
Innovative strategies, a comprehensive understanding of consumer behavior, effective
and aggressive communication of the company's message combine to bring about
success. This department will oversee the communication and public relation work at DSP.
23
Building Capacities
Capacity building is the most important aspects of development work and training is an important
component of capacity building. DSP focusses on building the capacity of its entire staff, by
providing opportunities to increase their knowledge, skills and other capabilities, to enable them to
play an effective role in leveraging and multiplying the impact of DSP in the area of development.
Trainings are the basic tool used to build the capacity of DSP staff. These trainings have a number of
benefits for staff;
They acquire new skills to perform their duties effectively.
The training they do can take them into other positions within the organization – positions with
better prospects and/or better pay.
They're up-skilled to do new and different tasks, which keeps them motivated and fresh.
Better trainings of staff result in better customer services, better work safety practices and
productivity improvements. To equip the employee with new developments Human and
Institutional Development Section (HID) of DSP identifies gaps in the skills of its employees and
assesses their needs, after need assessment it is decided that what type of training is needed and
who needs it.
DSP believes the most sustainable form of development lies in harnessing the potential of the local
human resources to face the challenges of social and economic empowerment. Capacity reflects
the aptitude of individuals, institutions and communities to perform functions effectively and
resolves problems to achieve objectives in a sustainable manner. During the reporting period DSP
has trained a number of community females to be an active participant of life and career oriented.
Institutional Level Trainings
DSP's capacity building plan is based on quarterly basis for head office and field staff. Training
Department plans training by keeping in view the employee's job description, addition in policies
and further enhancement of their skills for better and efficient output.
Trainings on Appraisal Techniques and Cash Flow
5 trainings on “Appraisal Techniques and Cash Flow” were organized for loan officers (LOs) and
Junior Professionals (JPs) in their respective area offices. The training enhanced the knowledge of
the participants regarding microfinance, microcredit, appraisal & its techniques and how to develop
these techniques to appraise the client, major types of credit appraisal and major channels in credit
appraisal, difference between bank appraisal and MFI appraisal, key areas of credit appraisal,
ensuring borrowers' satisfaction and cash flow. Total of 100 participants benefited from these
trainings.
DAMEN SUPPORT PROGRAMME
20 42
Date
Area
Attendees
3 & 4 Feb - 2015
I
20
5 & 6 Jan - 2015
II
18
2nd Feb - 2015
III
20
2 & 3 Mar - 2015
IV
22
26 & 27 Mar - 2015
V
20
Total
100
Trainings on Loan Portfolio & Delinquency Management
5 trainings on “Loan Portfolio & Delinquency Management” were organized for the loan officers
(LOs) and Junior Professionals (JPs) in all area offices of DSP. Purpose of these trainings was to
strengthen the knowledge and build the capacities of participants in the field of loan portfolio and
delinquency management. The trainings shared the case studies of some delinquent clients to
identify the reasons of delinquency, followed by the group discussions to identify the causes of
delinquency during different phases of loan lending. In the end a discussion was made on internal
and external causes of delinquency and ways to control these delinquencies. Total 94 participants
were trained through these trainings.
Date
Area
Attendees
6th May - 2015
I
18
4th May - 2015
II
18
9th June - 2015
III
18
8th June - 2015
IV
20
5th June - 2015
V
20
Total
94
Orientation of New Field Staff
Nine orientations were organized for newly hired field staff (JPS, LOs and AOs) to introduce them to
the DAMEN & transformation of DAMEN's microfinance program into DSP and DSP's policies and
role in economic development. The orientations also focused on code of conduct, appraisal &
social mobilization techniques, policies and procedures of microcredit program. These
orientations are effective source of reducing the anxiety of the employee and sharing relevant
organizational information to begin a process of learning about the organization's mission and
work.
20 52
Community Level Trainings
DSP builds the capacity of poor and disadvantaged communities to improve their ability to
participate in the activities of social development by identifying the key problems they encounter
and possible solutions. It supports them to create self-led resilient and sustainable community
outcomes and respond independently to their own challenges and opportunities.
DSP mainly focuses on the empowerment of marginalized females through collective actions and
their own participation. Keeping in view the ultimate outcome of empowerment DSP initiated “Skill
Development Program” in 2012. It was an addition to empower the females through their skill
development process.
Skill Development Training Program (SDTP)
Skill Development Training Program is developed for those females who have some sort of
financial support but lack any skill to start and run any enterprise. Under this program DSP primarily
assesses the training needs of females of respective areas, after reviewing the business trends
over there. After need assessment a training course is developed for them. Through these training
DSP intends to develop employable skills in marginalized females to enable them to earn a
livelihood. Skill Development Trainings are flexible and demand driven. DSP provides these
trainings free of cost to the applicants. Impact of the trainings is excellent and it helps the learners to
do their own enterprises and some sort of income generation for their families and themselves.
Stitching Course
During the reporting period 7 courses on stitching were organized and 114 unskilled females of
different communities got this training with the purpose of starting their own enterprise and income
generation to meet everyday expenditures and to improve their living standards.
Date
Area
Participants
Ali Raza Abad
18
17th Feb – 23rd Mar, 2015
Manga
20
23rd Feb – 30th Mar, 2015
Sharqpur
11
23rd Feb – 30th Mar, 2015
Pattoki
17
19th Fe b - 25th Mar, 2015
Shahkot
15
1st May – 5th Jun, 2015
Jamber
12
Sharqpur
21
2nd – 30th Mar, 2015
13th Apr – 20th May, 2015
Total
114
27
Beautician Course
Total of 7 courses on beautification were organized for 203 females from different
communities to impart them the skills of beautician. The courses were designed to make
the participants able to earn their livings and share their familial burdens by establishing
their own beauty parlors.
Date
Area
Participants
19th Feb -25th Mar, 2015
Chung
13
25th Feb -30th Mar, 2015
Halloki
15
23rd Feb -30th Mar, 2015
Dhamkey
21
19th Feb -25th Mar, 2015
Nankana
20
23rd Feb -30th Mar, 2015
Habibabad
17
20th Apr -25th May, 2015
Rachna Town
17
19th May -25th Jun, 2015
Warburton
19
Total
203
Course on Handicrafts
A training workshop on handicrafts and decoration piece-making was organized at
Begumkot. Total of 29 participants availed the opportunity of getting skillful training to
improve their livings standards.
Date
Area
20th Apr – 25th May, 2015
Begumkot
Participants
29
Cooking Course
A cooking course was organized for 16 females in Halloki. The course was designed to
impart knowledge required for preparing good quality Pakistani food. Participants of these
trainings can not only apply these methods in their routine cooking but it will also help them
in starting their own business.
Date
20th Apr – 25th May, 2015
DAMEN SUPPORT PROGRAMME
28
Area
Participants
Halloki
16
External Trainings for Staff
External training is training provided from outside the organization's office or staff using external
consultants, specialists or organizations. Internal training is very important but an external training
process can add interest, give a greater breadth of experience and working practices, and give
better opportunities for discussion with other people facing the same problems. In external training
organization seeks knowledge & skill that can enhance the employee's productivity skills/
behavioral skills / performance skills etc.
During the reporting period following opportunities were being provided for staff capacity building.
Mr. Muhammad Suleman from Area 1, Mr. Akhtar Abbas from Area 2, Mr. Nazim Hussain from
Area 3, Ms. Nasira Sarwar from Area 4 and Ms. Farzana Yasmeen from Area 5 attended the 5day training on “Microfinance at Grass Roots Level” from 26th to 30th January, 2015 organized
by State Bank of Pakistan. Main objective of the training was to scale up the knowledge and
skills of the existing staff on microfinance spectrum.
Since a few years Islamic Banking has become a distinctive and fast growing segment of the
international banking and capital markets. Keeping in view the increasing trends of Islamic
Banking, DSP in collaboration with Alhuda-CIBE organized “3-Day Training on Islamic
Microfinance” from 6th-8th April, 2015, for its Head Office and field staff in DSP Head Office.
The training briefed the participants on the issues related to mode of financing in Islamic
microfinance, Mudarabah & Musharakah, Islam and Istisna, and Ijarah. The training also
introduced the innovations and developments in Islamic Microfinance Sector. Total 12
participants including Chief Operating Officer, GM Operations, GM Finance & Admin, Manager
Risk, Assistant Manager Field Operations, Deputy Manager IT, Deputy Manager Finance and
all Area Managers were benefitted from the training.
With the Mobicash inclusion in branchless banking service providers, DSP in collaboration
with Mobicash conducted training on Mobicash for all field staff in their respective area office.
Training provided an introduction about the policies, procedures and main working areas of
Mobicash. Trainings were conducted on 1st, 2nd, 3rd, and 4th June, 2015 in area 1 & 2, area 3,
area 4 and area 5 respectively.
Junior Professionals (JPs) Program
The Junior Professional (JPs) Program provides professional trainings with practical experience
regarding microfinance. JPs Program of DSP is a six month duration program for the limited number
of candidates. The program helps in bridging the gaps of unemployment by providing the
organization a back-up of human resources in different operational areas. During the reporting
period total 10 JPs were trained professionally through this program
DAMEN SUPPORT PROGRAMME
30
Networking & Linkages
Linkages and Networks between microfinance organizations provide an important avenue
through which these organizations can overcome a number of constraints. Networking and
linkages help in increasing the effectiveness of microfinance program by extending the
resources in different ways. DSP is firm believer of the fact that development work cannot
be done in isolation and there must be mediums of interaction and information sharing
among organizations specially working on the same issues. Interaction with other peer
organizations not only builds the capacity of organizations but also enhances different skills
of staff by providing them the opportunities of external exposure.
To achieve the goal of long term sustainable development DSP has always focused on
creating linkages and networking at the local and regional level.DSP is an active member of
the following networks:
Pakistan Microfinance Network (PMN)
Punjab Reproductive Health Network (PRHN)
Punjab NGOs Coordination Council (PNCC)
Pakistan NGOs Forum (PNF)
Pakistan Center for Philanthropy (PCP)
Partner organization of Pakistan Poverty Alleviation Fund (PPAF)
To serve the purpose of networking and linkages, following visits were done during the
preceding year;
Manager HID attended the seminar on “Role of Microfinance & Enterprise in the
Empowerment of Women” organized by Pakistan Microfinance Network (PMFN)
and Mir Khalil-Ur-Rehman Memorial Society on 7th March, 2015.
Manager HID participated in the “International Women's Day Celebration” by Central
Welfare Organization on 10th March, 2015.
COO DSP and Manager HID participated in the “Celebrations of International
Women's Day 2015” by Kashf Foundation and Asian Development Bank (ADB) on
12th March, 2015
Senior Training Officer, Area Manager Area 2, Area Coordinator (Area 3) attended
“Two Day Conference on Islamic Microfinance” organized by Al-Huda Cibe with the
collaboration of Islamic Microfinance from 21st-22nd March, 2015. The training was
followed by the exposure visit of two microfinance organizations (Akhuwat and
Naymet).
DAMEN SUPPORT PROGRAMME
32
Dr. Elizabeth Wallace and Heidi Sumser, Consultants KFW, visited DSP office, on
27th March, 2015, to have a meeting with Ms. Naghma Rasheed (ED/CEO DSP)
and Mr. Pervaiz Hamid (COO DSP) for their research on feasibility of adopting and
funding the IDCOL model for a RE/solar home systems program through PPAF,
POs, and other institutions (including the private sector) in Pakistan as the final part
of an on-going SME study for kfw.
ED/CEO-DSP and GM Operations participated in the “9th Citi-PPAF Micro
Entrepreneurship Awards” on 31st March, 2015.
Manager HID attended the Zakat-o-Usher Committee meeting with
development sector representatives at Chief Minister House on 16th April, 2015.
ED/CEO-DSP and COO-DSP participated in a discussion on “Future Trends of
Microfinance” at Lahore School of Economics on 16th April, 2015.
ED/CEO-DSP and COO-DSP participated in the “25 Year Celebrations of CSC” on
22nd April, 2015.
ED/CEO-DSP attended the “International Conference on Innovative Agricultural
Financing” organized by State Bank of Pakistan on 28-29 April, 2015 in Islamabad.
ED/CEO-DSP participated in the discussion to “Finalize the Revised Draft to
Monitor NGO's & INGOs” organized by Human Rights Commission Islamabad on
17th June, 2015.
COO-DSP and GM IT attended the PMN Members meeting at PMN office Lahore
on 18th June, 2015.
ED/CEO-DSP participated in the “Launching Ceremony of National Financial
Inclusion Strategy” organized by State Bank of Pakistan at Islamabad on 22nd
June, 2015.
Manager HID attended “SAP-Session on Minority Rights” organized by Human
Rights Commission of Pakistan on 22nd June, 2015.
33
Donation for Flood Relief
Heavy monsoon rains of 2014 triggered flash floods across
Pakistan, claiming a large number of human lives, wreaking
havoc on infrastructure and leaving thousands of people
helpless and forced to reside in open sky without shelter and
food facilities. DSP gave immediate response by sending
ration packs and cots for these flood victims. At this hour of
need entire DSP staff gave a proof of humanity by donating
their one day salary for these flood victims.
Educational infrastructure of flood affected areas was also
badly disturbed, due to the damage of school buildings and
roads, directly affecting the enrollment of students at school.
DSP is a firm believer that education is much important to
overcome the poverty and achieve the goal of sustainable
development. Due to this belief DSP funded for the
renovation of Government Girls Primary School building
which was badly damaged in floods and had become nonfunctional. Funding by DSP enabled a number of female
students to get formal education to play an affective role in
development.
DAMEN SUPPORT PROGRAMME
34
Before Renovation
During Renovation
After Renovation
Annual Function & International Women’s Day Celebration
Damen Support Program in collaboration with DAMEN celebrated Annual Function and
International Women’s Day on 9th March, 2015 at Pakistan Institute of Language, Art &
Culture (Alhamra Cultural Complex Qaddafi Stadium, Lahore). The day was celebrated to
encourage the entire DSP staff and commemorate international women Day, eulogizing
the females' role in socio-economic development of the country. Nearly 250 people
including field & head office staff, board members, civil society organizations and media
persons were invited in the event. A documentary on “One Billion Rising Campaign” was
presented before the audience.
One Billion Rising is the biggest mass action to end violence against women in human
history. The campaign, launched on Valentine's Day 2012, began as a call to action based
on the staggering statistic that 1 in 3 women on the planet will be beaten or raped during her
lifetime. With the world population at 7 billion, this adds up to more than one billion women
and girls. On 14th February 2013, people across the world came together to express their
outrage, strike, dance, and rise in defiance of the injustices women suffer, demanding an
end at last to violence against women. Last year, on 14 February 2014, One Billion Rising for
Justice focused on the issue of justice for all survivors of gender violence, and highlighted
the impunity that lives at the intersection of poverty, racism, war, the plunder of the
environment, capitalism, imperialism, and patriarchy. Events took place in 200 countries,
where women, men, and youth came together to Rise, Release, and Dance outside of court
houses, police stations, government offices, school administration buildings, work places,
sites of environmental injustice, military courts, embassies, places of worship, homes, or
simply public gathering places where women deserve to feel safe but too often do not. The
documentary focuses on the voice raised by women rights activists from all over the world,
protesting in different ways.
After documentary a heart touching performance on the song “Mein aisi qoum sa houn jis k
woh bachhon sa darta hai” was given by students of DAMEN home schools to pay tribute to
great martyrs of Army Public School. During the programme prizes were distributed
among the best DSP's clients, who better utilized their loans to improve their financial
condition, best performing Damen home schools' teachers and the children who
performed in the skit while shields were distributed among the staff showing good
performance around the year.
DAMEN SUPPORT PROGRAMME
36
DAMEN's Staff
Head office Staff
Head office
Staff
Ms. Naghma Rashid
Mr. Pervez Hamid
Chief Executive Officer
Chief Operating Officer
Internal
Audit
Section
Mr. Muhammad Asif
Mr. Rana Khuram Subhani
Mr. Irfan Naeem
Manager Internal Audit
Deputy Manager Internal Audit
Assistant Manager Internal Audit
Finance and
Administration
Section
Mr. Wajid Ali Khan
Ms. Khadija Fareed
Mr. Syed Khuram Bukhari
Mr. Haroon Majeed
Ms. Sarfraz Taj Din
Mr. Ch. Ubaid Arshad
Ms. Hiba Khalid
General Manager Finance and Administration
Deputy Manager Finance
Deputy Manager Administration
DeputyManager Finance (payroll)
Assistant Manager Accounts
Assistant Manager Administration
Front Desk Officer
Mr. Hassan Tariq
Mr. Kazam Raza Rizvi
Mr. Haider Umer
Mr. Jehan Z aib
Mr. Abul Hassan
General Manager IT
Deputy Manager IT
Assistant Manager IT
General Manager Operations
Assistant Manager Field Operations
HID Section
Ms. Rukhshanda Riaz
Mr. Afzal Hayat
Ms. Riffat Shaheen
Ms. Humera Asghar
Ms. Aisha Almas
Manager HID
Assistant Manager Personnel
Senior Training Officer
HR Officer
Research & Documentation Officer
Risk
Management
Ms. Sadia Munir
Ms. Gulzareen Khan
Ms. Asia Khatoon
Manager Risk
Senior Risk Officer
SeniorRelationship Officer
Communication &
Marketing Dept.
Mr. Awais Masud
Communication & Marketing Manager
Mr. Humza Hussain
Development Coordinator
Mr. Muhammad Tahir
Mr. Altaf Ahmad
Mr. Muhammad Fayyaz
Mr. Shoukat Ali
Mr. Afzaal Ahmed
Mr. Habib Hussain
Mr. Muhammad Ashiq
Mr. Hafiz Rana Zahid
Office Boy
Officer Boy
Driver
Driver
Driver
Driver
Driver
Driver
IT Section
Operations
Others
DAMEN has five area offices in districts Lahore, Kasur, Sheikhupura and Nankana. Each area office comprises
of an area manager, area coordinator, area risk officer, appraisal officer, and driver. Five field offices comprising
of field manager, accounts officer and loan officers, work under the supervision of area office.
By the end of the year 2015 DAMEN had 40 staff members at Area Office 1 (Lahore), 39 at Area Office 2 (Lahore),
37 at Area Office 3 (Sheikhupura), 36 at Area Office 4 (Kasur) and 37 at Area Office 5 (Nankana).
DAMEN SUPPORT PROGRAMME
38
Audit Report
2015
39