Our Approach?q=123 Our Philosophy?q=123 Our People?q=123 Financial Info?q=123 Partners?q=123

India’s central bank, the Reserve Bank of India, specifies that non-deposit-taking NBFC-MFIs (Bharat Financial Inclusion Limited became an NBFC on January 20, 2005, NBFC-MFI on November 18, 2013) have to have a Capital adequacy Ratio of 15%. BFIL maintains a healthy Capital adequacy Ratio of 31% as on September 30, 2013.

Ever since it transformed into a for-profit NBFC in 2005, BFIL has established a reputation for raising equity and debt to keep pace with its ambitious growth plans. It has set new standards for the sector repeatedly on the amount of equity and debt raised. It has also been instrumental in introducing mainstream financial instruments into microfinance sector.

While funding its growth, BFIL has given top priority to maintaining the highest standards in financial transparency. It recently converted from a Private limited Company in order to comply with even more stringent accounting standards. It has won the CGAP award for Financial transparency thrice – in 2004, 2005 and again in 2006. Apart from financial audit conducted by external agencies, BFIL also has a strong internal audit team of over 400 members who monitor operations on an on-going basis.


Operational Information FY14 FY13 FY12 FY11 FY10 FY09
Total no. of Branches 1,255 1,261 1,461 2,379 2,029 1,353
Total no. of Districts 294 298 329 378 341 307
Total no. of Staff 8,932 10,809 16,194 22,733 21,154 12,814
Total No. of Members (in ‘000) 5,783 5,021 5,351 7,307 6,780 3,953
Amount Disbursed for the period (INR crores) 4,788 3,320 2,737 7,831 7,618 4,485
Portfolio outstanding (INR crores)* 3,113 2,359 1,669 4,111 4,321 2,456
* includes assigned / magaged loan portfolio
Financial Information FY14 FY13 FY12 FY11 FY10 FY09
Revenue (INR crores) 545 353 472 1,270 958 554
PAT (INR crores) 70 (297) (1,361) 112 174 80
Assets (INR crores) 2,497 2,511 1,722 4,300 4,055 3,039
Networth (INR crores) 459 390 435 1,781 950 665

A strong Capital base, Impeccable Asset Quality and Experienced Management enables BFIL to raise debt capital to fund its ambitious growth plans. Historically, the MFI sector has relied on priority sector funding from commercial banks. In addition to such funding, we are also able to fund the growth of our operations and loan portfolio through issuances of equity and private and publicly traded debt securities, loans with various maturities raised from domestic and international banks, and the securitization of components of our loan portfolio. We have also diversified our lenders among public sector domestic banks, private sector domestic banks, private sector foreign banks, and institutional investors. We have banking relationship with over 45 banks today.

BFIL has also demonstrated thought leadership in raising debt by introducing mainstream financial instruments into microfinance. These instruments are useful in not just increasing the options for raising debt but also give BFIL the edge in smart management of its finances. Apart from fund raising from regular debt instruments, BFIL has raised debt through some of the following avenues:

  • Rated bond
  • Assignment with public sector and private bank
  • Five-year term loan
  • Cash credit limit
  • Rated pool securitisation
  • Commercial papers
  • Listed debt security placed with FII
  • Subordinated debt for a term of 8 years

We believe that we are one of the first MFIs in India to complete a rated bond issuance, issue commercial paper, assign a rated pool, sell a “weaker section” portfolio, list debt instruments on the BSE, get a long term subordinated debt (Tier II) for a term of 8 years and complete an assignment of receivables with a public sector bank.


BFIL is conscious of the fact that the funds required for alleviating poverty are available only with commercial funders. It accesses these funds to fulfill its social mission of empowering the poor.

In its efforts to attract commercial funding into the microfinance sector, BFIL has been in the forefront. It has raised equity from a wide range of investors – from Government-backed development funds from SIDBI to Angel Investors, Venture Capitalists, Private equity and recently from mainstream financial institutions.

Vinod Khosla, SIDBI, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank are among the existing equity partners of Bharat Financial Inclusion Limited.

Annual Report 14-15
Audited Financials
Interview with Dilli Raj