The Hindu Business Line : Creating managers for micro finance

Even by conservative estimates, the annual demand for micro finance in India is to the tune of Rs 75,000 crore. With such a big market for micro finance products catering to the poor, the need for dedicated manpower to manage the sector cannot be brushed aside. But do we have enough human resources to manage this sector? Many of those working in the micro finance sector say `no'.

N. Balasubramanian, Chairman and Managing Director, Small Industries Development Bank of India (SIDBI) says that the growth in the micro finance sector in the country has created a demand for trained manpower to manage the sector. Though the number of micro finance institutions in the country is estimated to be above 700, there is no clear data on the number of dedicated and qualified people working in the sector. One of the factors hindering the growth of the micro finance sector is that the professionals in this sector have little formal education in financial planning, accounting, portfolio management and delinquency analysis of micro finance projects. They also lack formal education in promoting and capacity building of the stakeholders.

Similarly, L.H. Manjunath, Executive Director of Sri Kshetra Dharmasthala Rural Development Project (SKDRDP), an NGO working in the sector, puts it this way. "Micro-finance is a human resource-based sector. There is lack of dedicated manpower to manage it."

Now, considering the demand for a committed workforce in the micro finance sector, SKDRDP and SIDBI have come together to form SKDRDP-SIDBI School for Micro Finance Training (SSSMFT). The school's aim is to devise an exclusive course for managing micro finance institutions and to impart training in accounting and technical aspects to those entering this sector.

Manjunath says that the institute will showcase different models of micro finance, conduct dedicated courses for system development in the sector, prepare youth to take up employment in the sector and give escort services to selected youth for obtaining jobs in the sector. "SSSMFT's aim is not to prepare MBA graduates for the sector," he says. The focus will be on offering certificate courses in various aspects of micro finance with field applications in mind, he adds

For the first time, SIDBI — a pioneer in advocating the spread of micro finance in the country by supporting capacity building in grassroots level organisations and providing them access to finance — has allowed its name to be used in the micro finance training school. Balasubramanian of SIDBI, who was in Mangalore recently to open SSSMFT, says "For the time being we want to work with SKDRDP. Once this model is successful, we want to take this model to other parts of the country also." SSSMFT, to be based in Mangalore, will scan the environment and identify micro finance practices worth emulating. It will also provide existing micro finance ventures with a focus on value addition.

During the first year, the institute is expected to conduct short-term courses of durations varying from two days to one month. For instance, it will conduct 30 two-day training programmes in account keeping for nearly 600 members of self-help groups. Similarly, 15 one-week training courses in micro finance practices are also being planned.

A comprehensive, one-month programme will train nearly 20 candidates in various aspects of micro-credit such as financial analysis, budget planning, and delinquency management.

Apart from designing and executing various capacity-building programmes for the staff of NGOs involved in micro finance projects, the institute will coordinate with various developmental and research institutions in conducting a range of structured programmes. There are also plans for courses for rural developmental workers, bankers, government officials and others.

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