Grama vidiyal micro finance ltd - TRICHY, TAMIL NADU

This is related to business ethics and governance topic. Done for M.B.A LIBA CHENNAI

1. ETHICS AND CORPORATE GOVERNANCE. By, SM.Thiyagarajan . ERB16026. 1

2. 04-May-18 GVMFL 2 http://www.gvmfl.com/

3. 04-May-18 GVMFL 3

4. About GVMFL Grama Vidiyal Microfinance Limited, a Non-banking Finance Company (NBFC), is one of the largest microfinance institutions in the country. As a part of the 30 year old conglomerate of grassroots institutions, it is known for its double-bottom-line approach focusing on the sustainability of financial inclusion programs and the development of women and their families. Woman empowerment is their main focus. They provide loans only to woman in each family. 04-May-18 GVMFL 4

5. Introduction A wholly owned subsidiary of IDFC Bank Ltd. An NBFC founded in 1993 Microfinance institution operating in Tamil Nadu area of South India and north India. Aim to provide loans to women without accessing credits since 1993. In 2007, GVMFL transformed from charitable trust to an NBFC. In 2016 june 13 th GVMFL was 100% taken over by IDFC Bank Bharat LTD. 04-May-18 GVMFL 5

6. Key People Executive Management Team : Chairman & Managing Director - S.Devaraj Chief Executive Officer - Arjun Muralidharan Chief Operating Officer - Shirley Devaraj Head-HR, Training & Recruitment - Satish Devaraj 04-May-18 GVMFL 6

7. Vision A value based, poverty free, productive, Prosperous, humane and sustainable " Grama Vidiyal " family. Mission To empower women of the poorest families socially, economically and politically through networking them into community institutions and through efficient poverty alleviation and microfinance program. 04-May-18 GVMFL 7

8. Values Spirit, Team Work, Accountability & Resourcefulness with Unyielding Integrity and Social Focus Quality Statement We are committed to products and services, with effective planning, process and technology to achieve utmost customer satisfaction through continuous improvement and teamwork our employees. Our objective is to focus on eradication of poverty and improving the standard of living of downtrodden women. 04-May-18 GVMFL 8

9. Business Numbers : (as on February, 2017) 04-May-18 GVMFL 9 7 STATES 64 DISTRICTS 326 BRANCHS 3372 EMPLOYEES 1.274 MILLION MEMBERS 13.36 LOAN DISBURSED 12342 CR AMT DISBURSED 1437 CR AMT OUTSTANDING.

10. Corporate Social Responsibility Creating positive change in economic status, change in health condition of our members and change in the environment around us. 04-May-18 GVMFL 10

11. A seed was sown 3 decades back, which was carefully nurtured by the hard work and sacrifice of many individuals. And now it stands tall with wide spread branches, giving shade for more than 1 million poor members and 2900 staff.  Grama Vidiyal Micro Finance Limited is one of the very few organizations focusing not only on the economic development of its members as well as the public in and around the city. They donate food for more then 100’s directly in head office as well around the city. They have established schools and colleges for the poor people at a very low cost for the development of the people. 04-May-18 GVMFL 11

12. GVMFL organized a total of 781 camps with 32 specialities from which 2,80,426 participants got benefitted in which 66,689 were referred to hospital and it was achieved successfully through our strategic tie up with 87 most reputed Hospitals in Tamil Nadu, Pondicherry, Madhya Pradesh and Maharashtra. 04-May-18 GVMFL 12

13. Acquisition IDFC BANK acquires GRAMA VIDIYAL- 2016 04-May-18 GVMFL 13

14. FAIR Practice Codes Formulated Fair Practices Code to lay down the following procedures/practices in dealing with the business transactions. - Member admission - Applications for loans and their processing - Loan appraisal - Disbursement of loans - Changes in terms and conditions 04-May-18 GVMFL 14

15. Grievance Redressal Policy Reduce the instances of complaints through continuous service delivery by providing appropriate mechanism and to ensure the needs of the customers are addressed properly. To provide appropriate solutions to the clientele needs through formal and informal channels. To increase clientele participation in issues related to problem solving and grievances. To inform and educate the customers on grievance redressal mechanism  To provide services to widen the customer base and also to retain the existing customers. - To provide adequate training to staff in resolving the customers issues. - To intervene the issues and handle the complaints speedily and efficiently. 04-May-18 GVMFL 15

16. Mode of Complaints : Grama Vidiyal Micro Finance Limited has considered the clients profile, literacy level, family background and their conduct in the centre meeting in making the mode of complaints. It should be ease and accessible to clientele for resolving the issues on time, speedily and effectively. Helpline number (Loan pass book) Member complaint register Federation Leader Meeting (Twice a year meetings in branches) Direct mailing or Email / letter correspondence. 04-May-18 GVMFL 16

17. The Board of Directors shall provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievances addressing mechanism at various levels of management. A consolidated report of such reviews may be submitted to the Board at regular intervals, as may be prescribed by it. All complaints are carefully analyzed, authenticated and processed well for providing appropriate solutions depending upon the level of the complaints/issues and it the same should be escalate to the responsible person at various levels to bring way out. (branch, division, region and HO). 04-May-18 GVMFL 17

18. Category of code of ethics The company follows : Pure honesty and fairness in relationship with customers, suppliers and employees. The company will not do any act which is unlawful or improper that harms the organization. 04-May-18 GVMFL 18

19. Corporate governance : The success of GVMFL has created interest among social investors across the globe to collaborate in poverty alleviation efforts of the organization. GVMFL had received equity investments from renowned investors Mr. Vinod Khosla and Unitus Equity Fund for the rest equity round followed by investments from Micro vest, Amar foundation and Unitus Equity fund for the second round of equity. The presence of such strategic investors helps the company to have good corporate governance and set the platform for taking the organization to greater heights 04-May-18 GVMFL 19

20. 5 Star Rating PLATINUM from GIIRS : Grama Vidiyal Micro Finance Limited has awarded 5 Star Rating - PLATINUM from Global Impact Investment Rating System (GIIRS) consecutively for the Third year(2015) for maintaining good corporate governance, transparency, employee and Community benefits. 04-May-18 GVMFL 20

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