Wednesday, April 7, 2010

P.N. Vasudevan

"Microfinance is the best bridge between the financially-excluded and the mainstream markets. Or, between India and Bharat. In Chennai alone, 55 per cent of households don't have a bank account. The biggest challenge to microfinance is the cost of delivery, to meet which we need to leverage the technological and operational efficiencies of retail banking to benefit the customers in the social sector. Annual demand for microcredit is Rs 2 lakh crore, against which supply is about 10 per cent. Of this 5 per cent comes from banks and SHG and the balance from all the MFIs (microfinance institutions)."
P.N. Vasudevan, Managing Director, Equitas Micro Finance Company India (P) Ltd, Chennai
Meeting on April 29, 1 pm

April 7, 2010, 7.30 am (Nag)


Murali said...

About Vasu...

Mr P N Vasudevan is the promoter and Managing Director of Equitas Micro Finance Company India (P) Ltd.

Vasudevan, a Physics and Law graduate and who is also a qualified Company Secretary has more than 23 years of invaluable experience in Banking and Financial Services Sector. He was the EVP and Head of Consumer Banking Division of Development Credit Bank (DCB) for a period of 1½ years in Mumbai. His responsibilities included Retail Banking, Branch Banking and Alternate channels. Vasudevan managed a network of 72 branches spread over mainly Maharashtra, Gujarat and North India. His Tenure saw the launch of many new retail products like MPower, Privilige Banking for HNI Customers, Commercial vehicle and Construction Equipment financing, Home equity etc. During this period, CASA (Current A/C Savings) balances grew by 35% compared to the industry growth of 19%. The monthly disbursement in retail assets grew from Rs. 20 Crores per month to about Rs. 150 Crores per month.

Mr Vasudevan also spent 20 years with the Chennai based Cholamandalam Investment and Finance Co Ltd, a part of the Murugappa Group. Cholamandalam is primarily focussed on Vehicle financing and its operations are spread across 120 branches throughout the country. He joined the Group as a Management Trainee in 1986 in the Secretarial Department and rose in ranks as Company Secretary and Legal Manager in a short span of time. In 1991, he switched to Business operations, spearheading the operations of all business lines and resigned from Cholamaandalam as Vice President and Business Head.

Mr Vasudevan has been an active speaker at various industry forums like Retail Bankers’ Summit conducted by the Asian Bankers Association, All-India Bankers Summit organised by Indian Bankers Association, programmes organised by Equipment Leasing Association, South India Hire Purchase Association etc on topics ranging from managing large retail finance and credit risk management to technical papers on Sales tax on hire purchase / lease transactions, etc.

He was also the Chairman of the South India Hire Purchase Association for the year 2005-06.

Mr Vasudevan has contributed many articles to various journals such as Chartered Secretary, Company Law Journal etc.

An avid golfer his other hobbies include listening to music. He lives with his wife and daughter in Chennai
About the company...

Equitas Micro Finance India (P) Ltd was floated in June 2007 and commenced business in December 2007. ‘Equitas’,a Latin word meaning ‘equitable’ means being fair and transparent. Every single activity of the company is dedicated to being fair and transparent in all its business practices and following sound corporate governance policies. The Company’s vision is to be the leader in Micro Finance Industry by providing transparent and trustworthy access to financial and other relevant products and services by deploying cutting edge technology and forming partnerships and alliances.

The company has been floated for extending micro credit to people who are otherwise unable to access finance from the mainstream banking channels. The alternate source for such people normally is the private money lenders whose rates of interest ranges anywhere from 30% to upwards of 100%. The objective of the company is to make available finance at reasonable cost and in a transparent manner to women who are engaged in micro enterprise activities. In the process Equitas aims to achieve acceptable returns on investment so that the company continuously attracts mainstream capital and human resources to better serve the chosen client segments. The company follows the Grameen Model with suitable adaptations. The customers would be formed into groups consisting of 5 members and 5 groups would be clubbed to form 1 centre. Each group and centre would have one leader. The groups would be joint liability groups, with each member of the group guaranteeing the loan repayment of the other members of the group.

The company is promoted by Mr P N Vasudevan along with Mr. M Anandan, ex-M.D of Cholamandalam DBS Finance Ltd and Mr. V P Nandakumar, Chairman, Mannapuram Group of Companies, Trichur. Mr. Vasudevan has rich and valuable experience in Banking and Finance Industries. He has worked as Vice President in charge of the retail business in Cholamandalam Investment & Finance Co Ltd, Chennai and as Head of Consumer Banking in Development Credit Bank, Mumbai. The Board of Directors consist of eminent people like the Chairman, Mr. N. Rangachari, CA, ACS, AICWA (ex chairman of IRDA, CBDT), Mr. P Vaidyanathan, M.D of Integrated Enterprises Ltd, and Mr Sitaram Rao, Director, SKS Micro Finance supported by a highly experienced senior management team. The Advisor to the Board is Mr. Nasser Munjee, Chairman of Development Credit Bank and ex-M.D of IDFC.

Equitas has reached quite a number of milestones for a young start up company. In the very first week of its operations it acquired 1000 customers. Crisil has given the highest credit rating they have ever given for a start up Micro Finance Company. The company has also been selected as a partner for receiving technical advisory services from Unitus Advisors (P) Ltd, a global micro finance accelerator, which partners only with companies who are in operation for a specified period of time and with a customer base of around 25000. The company also has the distinction of starting with the highest equity for a start up MFI in the country at Rs. 13.5 Cr against the earlier record of Rs 2.8 crores. The company also received its 1st round Venture Capital funding at a premium even as it was just commencing business.

Equitas has also created many records in the industry. It is the first company to start business after putting in place a fully integrated software system. Also it is the first company to implement internet-based state of the art software in the MFI industry. Equitas is the first MFI in the country to separate Collection and Business Development teams. Loans are guaranteed within 14 days of receiving applications. Pre printed stickers are issued as receipts against fortnightly payments made by customers which gives greater benefits than high tech solutions such as hand-held but at zero cost. It has also outsourced activities like cash disbursement to branches, pay roll processing, statutory compliance and back end technology support to professional agencies.

Equitas has 10 branches in Chennai and 5 in Trichy and will be adding additional branches in major urban locations in Tamilnadu during the current year. In the subsequent years, Equitas would be spreading to other States in South and other regions.

As part of its CSR activities, the Company has also formed the Equitas Development Initiatives Trust (EDIT) which will focus mainly on the areas of Education for the poor and Community Development. The Trustees include Dr C K Gariyali, retd IAS, Mr M B Nirmal, founder of Exnora, Mr. R Balasubramanian, retd Madras High Court Judge and Mr. P N Vasudevan. 5% of the annual profits of Equitas Micro Finance would be donated to the trust for fulfilling its social objectives.

EDIT has already commenced pilot programme in education working with 3 Corporation Schools and in consultation with Chennai Corporation, plans to extend its activities to all the schools in Chennai in the initial phase.
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Anonymous said...

Vasu is an intelligent and self driving person. I have worked in Cholamandalam for a short span of time though not under him, I could very much feel his presence and ideas on any projects which were getting implemented.

I wish him good luck in his new endeavour.