NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Saturday, May 28, 2005

Given the amount of press that micro finance as an activity has got in recent times, coupled with a few pronouncements of the finance minister on the subject, a host of banks and finance companies are examining it as a business opportunity. But the way to go about it has eluded many of them, used as they are to the norms of lending for agriculture or corporate finance.

It is in this context that I thought a documentation of the experience of ABN AMRO might prove useful. Especially since ABN?s size of operations in India, its branch strength, etc. are modest enough for a lot of banks to think that if ABN can do it, so can they. Provided they have a micro-finance head who is committed and genuinely believes in making a difference.

In fact, every interaction with Moumita Sen Sarma, the woman in charge of ABN?s micro-finance book in India, has made me realise that there may actually be no dichotomy in pursuing a line of business which benefits the economically handicapped and a bank?s foremost need to protect capital.
Story found here.