Let the market forces play.. ~ 4000 towns in India have sub 50,000 population

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Angling is a good leisure sport  that tests both the agility and  patience of the sportsperson. Quiet moments on the banks of a gushing mountain river or stream surrounded by thickly wooded hillsides resounding with the chirping of birds can be one of the most rewarding experiences in ones lifetime. With its perennial snows, glaciers and high mountain lakes that feed the numerous streams and rivers of the state, Uttaranchal is a veritable angler’s paradise. Of the 3000 kilometres of freshwater streams and rivers, 1200 kilometres have been identified as Trout territory.

River water Trout ( retails for northwards of Rs 500 per kg at Delhi’s Khan Market)

This hardy game fish was introduced into Uttaranchal rivers by the British as early as 1863 and has flourished thanks to the constant efforts of the state fisheries department. Two of the most sporting freshwater game fish to be found in abundance in Uttaranchal rivers and streams are the Trout – brown and rainbow and the Mahseer a type of giant carp found in the warmer streams and rivers in the lower hills.

Just flipped through CASHPOR’s Annual Report, considering they are a successful “not for profit” model of microfinance, some pertinent takeaways:

- A decade of experience with a GLP of INR 1810 Million with over 300,000 clients in 15 districts of East UP and Bihar.
- PAR>30 has halved to 0.69% ( against 1.77% in the previous fiscal) in a year where, without exception PAR>30 may have grown across MFIs. Really impressive.
- 66% of Cashpor’s matured clients have moved above the poverty line – Impact Assessment Study
- CASHPOR was ranked 4th in the Mix Global Composite Ranking of Profitable MFIs (For perspective, SKS was No.2)
- Capital Adequacy of 10.5% as on Mar-09 (Calculated by MCRIL) and plans to increase it to 12% by Mar-10 and continually meet the RBI CAR norms stipulated for NBFC’s. This would be achieved solely through a mix of retained earnings + subordinated debt. CASHPOR has no plans to attract commercial equity.
- MCRIL rating of Alpha(-) with a Positive Outlook
- Received Subordinated debt from Opportunity International and CORDAID
- Banking/FI relationships with 21 entities
- A Microfinance Business Manager of a leading Bank has joined CASHPOR as a Vice Chairman. This would add tremendously to their second line of leadership.

Latin America has a wide Business Correspondent Banking Network where cash can be deposited/disbursed at merchant establishments.

The Khan committee reported recommended the Business Correspondent Banking Model for India and the RBI issued guidelines to that effect.

However, POS machines were not permitted to disburse cash leading to experimentation with various technologies like RFID/NFC/Smart cards/Mobile phones. Several companies emerged and offered innovative solutions, however some concerns were common – customer adaptability issues, cost etc

A week ago, the RBI deputy governor had mentioned about new guidelines for business correspondents/facilitators: RBI has now permitted cash withdrawals at POS terminals. This for now provides a proven, scalable alternative to RFID/NFC/Smart cards/Mobile phones .This will give a boost to financial inclusion.

Consider this:

• Wide Network : The total no of POS machines in India is ~ 0.5 million with Interoperability.

• Low Capex: Each POS machine costs onetime ~ Rs 7500 ( $ 175), against Rs. 100,000+ ($ 2250) monthly for an ATM + Rental of the premises

• Cost per customer: Inexpensive Rs 15 magnetic strip cards.

• RBI has permitted the merchant to earn a fee on each transaction 

The Heart Attack Grill is a fast food hamburger restaurant in Arizona, USA. It has courted controversy by serving unashamedly high-calorie menu items with controversial names. The establishment is a hospital theme restaurant: waitresses (“nurses”) take orders (“prescriptions”) from the customers (“patients”). A tag is put on the patient’s wrist showing which foods they ordered and a “doctor” examines the “patients” with a stethoscope.

The menu includes “Single”, “Double”, “Triple”, and “Quadruple Bypass” hamburgers, ranging from 0.5 to 2 lb (0.23 to 0.91 kg) of beef (up to about 8000 calories), “Flatliner Fries” (cooked in pure lard), unfiltered cigarettes, beer and liquor, and soft drinks such as Jolt cola and Mexican Coke made with real sugar. Customers over 350 lb (160 kg) in weight eat for free if they weigh in with a doctor or nurse before each burger. Beverages and to-go orders are excluded and sharing food is also not allowed for the free food deal.

www.heartattackgrill.com/

Dig In.

Picture: With Professor Mohammad Yunus.

As a student of economics at University of Delhi, while doing a research paper on micro credit,  i had written to Prof Yunus in 2002 seeking some information on Grameen Bank, he had responded  instantly. I obviously did not know i was headed for an (exciting, enriching, stimulating, satisfying) career in micro finance.

Spent the last weekend (21st-22nd Mar 09) watching some absolutely great cinema, back to back – The Reader, The Curious Case of Benjamin Button, Valkyrie and The Revolutionary Road.

1.> The Reader – certainly Kate Winslet’s best performance till date, she also won an Oscar for this role. She brilliantly essays the role of a tram conductor who falls in love for ‘one’ summer with a several years younger teenager and engages amongst other things, a romantinc cycling holiday, enagaging in passionate lovemaking, reading sessions from Tintin to Homer’s Odyssey …….. only to disappear one day and reappear seven years later facing the court for her role in the death of ~300 people as a former SS guard. Meanwhile the kid grows up and practices law. She is convicted for life where the “kid” reads and  records literary masterpieces and dispatches them to her in jail…………….Wont reveal the plot anymore……….. must watch (5/5)

2.> The Revolutionary Road - Outstanding performance by Leonardo DiCaprio and Kate Winslet……….(4/5).

3.> The Curious Case of Benjamin Button – Too long. Must watch for the last 30 minutes where Benjamin continues growing younger till the last scene where both look into each other’s eyes. (3/5)

4.>Valkyrie - Good, Great story adapted from history. Tom Cruise is brilliant. (4/5)

However, it is The Reader which floored me completely, Must Watch, immediately before it goes off the multiplexes to make way for some ‘full of songs and dance sequences’ Bollywood film.

One of the best sources for Bengali culinary secrets. Do visit and dig in : www.sutapa.com

Step Forward @ Microfinance Transparency

http://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=4738#one

The RBI has mandated all NBFC’s ( including NBFC’s engaged in Microfinance (Read:MFI’s) ) to :

a) The Board of each NBFC shall adopt an interest rate model taking into account relevant factors
such as, cost of funds, margin and risk premium, etc and determine the rate of interest to be charged
for loans and advances. The rate of interest and the approach for gradations of risk and rationale for
charging different rate of interest to different categories of borrowers shall be disclosed to the
borrower or customer in the application form and communicated explicitly in the sanction letter.

b) The rates of interest and the approach for gradation of risks shall also be made available on the

web-site of the companies or published in the relevant newspapers. The information published in the

website or otherwise published should be updated whenever there is a change in the rates of

interest.

c) The rate of interest should be annualized rates so that the borrower is aware of the exact rates

that would be charged to the account.