Sa-Dhan the national Association of Community Development Finance Institutions, with 237 member organizations across all legal forms like societies, trusts, cooperatives and non banking finance companies will hold the first national level consultation meeting on Code of Conduct and Social Performance Initiatives for Microfinance Institutions (MFIs) on August 30th 2010 at Hotel Ashraya, Bangalore.
The Sa-Dhan Code of Conduct for MFIs is a progressive step to secure the orderly growth of Indian Microfinance. It is an instrument to ensure that members of the Association focus on community development and also provide financial services to the underprivileged sections of rural and urban India. It also sets the minimum standards of operation, acknowledged by the Reserve Bank of India, in order to achieve the long term development goals of microfinance. Social performance describes governance and social responsibility of MFIs as well as impact of Microfinance institutions on the quality of life of its clients. The AGM will vote for an amendment to make the Code of Conduct mandatory for all members of the association. Members of Sa-Dhan will discuss the implementation of the Sa-Dhan Code of Conduct and further indicators of Social Performance as well as Self Help Group Promoting Institutions (SHPIs) at this meeting prior to the Annual General Body Meeting of Sa-Dhan on August 31th 2010.
At its 12th Annual General Body Meeting on 31st August 2010, Capitol Hotel, Bangalore, apart from discussions on the Code, Sa-Dhan will also discuss the need for opening state chapters, the need for new and innovative communication tools, the release of the 2010 Quick Report and Sa-Dhan’s Task force recommendations. The Association has formed focused task forces to tackle the issues of various legal forms. The Chair of each task force will be discussing the outcomes and decisions made at the task force meetings held in July 2010 and presenting it to the general body on 31st August 2010.
The AGM will see the release of data on Financial Performance of Indian MFIs in its Quick Report: 2010, showcasing their financial analysis. Being the premier in collecting data of this kind, Sa-Dhan provides a thorough database on financial performance to the sector through this report. The data is annually used by banks, investors and policy makers for decision making. The report has collated data of more than 260 MFIs across India that have a total outstanding portfolio of Rs. 17643.81 Crores and a client outreach of 2.9 Crores, including a significantly large number of rural underprivileged women.
Various new initiatives taken in the direction of developing communication tools by Sa-Dhan will be discussed at the AGM. The first publication of its magazine, Micro Matters, has been distributed to all its stakeholders in the month of July. This magazine covers issues like financial inclusion, poverty alleviation, rural development, sustainability and empowerment. Sa-Dhan has also developed sector specific fliers for the Members of Parliament, which are being circulated periodically. Holding an important position within the sector in India, it has become Sa-Dhan’s responsibility to provide its stakeholders with up to date information and data. For this the organisation is presently revamping its website (www.sa-dhan.org).
