CRisMac KRISHAK

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Presentation Path
Agri - Facts Challenges in Rural Credit Penetration Rural Enterprise Current Scenario CRisMac KrishaK A Sustainable Option Data Flow to other Systems Click to edit Master subtitle style Risk Mitigating Rural Credit Sustainable Role for BC & BF Risk Mitigation - Future Contract System Driven Planning - Lead Bank Activities
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Presentation Path
CRisMac Krishak Empowers CRisMac KrishaK Facilitates Screen Shots Security Details Sanction Documents Click to edit Master subtitle style Reports Benefits of CRisMac KrishaK Conclusion

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Agri - Facts

Agriculture is a vital sector of the economy with a contribution of

14.2% to GDP (Growth rate : 5.4%)

60% of the population is dependent on agriculture 68% of the cultivable land is Rain-fed only leading to risk in agrifinance 43% of farmers are landless (Agricultural Laborer) 70Click to editlive in rural Indiastyle % of poor Master subtitle <10 % of farmers use crop insurance Credit penetration is less then 13%

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Agri Facts ... Dilemma

On one side, India is amongst the top farm produce exporting countries
Particulars (Agri. & Allied)
Milk, Cashew Nuts, Banana, Sapota, Ginger, Turmeric, Spices & Jute Tea, Wheat, Sugarcane, Rice, Cotton, Groundnut & Inland fish

World #
1st

2nd

Tobacco, Sorghum, Coconuts, On theto editside our subtitle style Click other Master farmers are committing suicide 3rd Rapeseed & Tomatoes

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Challenges in Rural Credit Penetration

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Proper assessment of rural credit needs Ability to factor in prevailing input prices while assessing credit requirements Fair Assessment of credit limit based on historical market price Availability of updated socio-economic/ demographic data for risk appraisal for rural financing Uncertain price of Agriculture produce for farmer - Cyclical volatility in production volume depresses realizable price Small window of 30-40 days during sowing season for assessment & disbursal of credit
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Challenges in Rural Credit Penetration

Lack of trained resources at bank branches Disbursal of timely & adequate credit High transaction cost of credit delivery Large no of middle-men; low profit margins; low viability High risk due to weather uncertainties
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Rural Enterprise Current Scenario

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CRisMac KrishaK A Sustainable Option

Collate inputs for planning like demographic data, infrastructure and economic environment

Analyzes Generates & Plans for Credit financing plans activities & holding Loan potential for subtitle style document growth Click to edit Master s

Enables Scientific evaluatio n of Rural Credit needs

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CRisMac KrishaK Functional

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Risk Appraised Credit & Insurance

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Data Flow to other Systems

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Risk Mitigating Rural Credit

Counseled Credit

Market Risk

Operation al Risk

Adequate Timely Credit Credit Credit Risk Click to edit Master subtitle style

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Sustainable Role for BC & BF

Assist in collecting household survey data for meaningful DSS Assist in risk mitigated additional business mobilization Assist in Verification and validation May assist in appraisal & doc. Function as an aggregator in futures contract facilitation
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Risk Mitigation - Future Contract

Benefits of Delivery Based Futures Contract by Farmers

Mitigates price risk & settlement risk for farmer and credit risk for the bank Farmers/ aggregator hedge price risk thru futures contract with Agri-commodity exchange & concentrate on quality produce Facilitates Agri-commodity exchange to device suitable produce specific products & insulate farmers from counter party default risks Farmers/ aggregator arranges to deliver commodities in the registered go down
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System Driven Planning - Lead Bank Activities

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CRisMac KrishaK facilitates Lead Bank functions as under: Bottom-up approach in credit planning ; mitigate risk for bank & borrower Data supported decision making by factoring for resources and its potential productive use; System driven computation of MPBF & expected income Automated preparation of Vill., Br., Block, DCP credit plans by the use of economic, demographic and other data inputs; Click to edit Master subtitle style scientific planning of capital Automated generation of Lead Bank Returns and allocation of credit plan targets for Bank wise, Block wise, Sector wise & Branch wise Segregations Monitoring of progress of deployment of credit vis a vis District Credit Plan Periodic data generation for BLBC, DLRC, SLBC for effective
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CRisMac Krishak Empowers

Planning & Data Collection Assessment

Review

Smart Card

Credit for Consumpt ion Credit

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rural Indebtedne ss
Appraisal

Documentat ion System Generated Application

Sanctionin g
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CRisMac KrishaK Facilitates

Village information at glance

Demographic data Land holding data Village credit plan Village Infrastructure details Market analysis of the produce etc. Asset details
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The household details such as

Land ownership details Lease land details Bank account details Liability details
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Facility of Village Allocation

Selection of Branch, District, Click to edit Master subtitle style Block and Villages

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Individual Household Details

Entry of Persona l details

Click to edit Master subtitle style Entry of the existing Bank, Land, Asset details of Copyright 2012 D2K the

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Working Capital KCC/ Production Credit

Productio n Livestock Post Harvest Activities Maintena nce Non-Farm Activities

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Other Features of Production Plan

Analysis of Market price of produce based Sensitivi on Agrity of the MandiClick to edit Master subtitle style Project price of to more fluctuati than 48 Gross in Maintaini ons months Cropped ng Area disposal variable status of s loan 4/19/12

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Warehouse Receipt Finance

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Futures Contract Main Interface

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Risk Mitigation - Insurance

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TL/DL-Investment Credit

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Repayment Schedule & IRR Calculator

Selection of Repayment Schedule in various modes

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To check economic viability of Project

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Farm Business Plan Summary

Production Credit

Investment Credit

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Non-Farm Credit

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Civic Engagements- Non Credit Initiatives

Better utilization of credit

Conservation of soil Credit counseling

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Better usage of fertilizers & pesticides

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Security Details
PHOTOS BAR CODE

THUMB IMPRESSIONS Click to edit Master subtitle style SIGNATURES

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Sanction Documents

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Reports

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Benefits of CRisMac KrishaK

CRisMac KrishaK is data supported appraisal system based on granular household data in conjunction with production, yield, cost & other critical data inputs Actual field condition testing reveals that the collection of household data take less than 8 mins./ record Household data could be collected by the branch, staff, Govt. dev. Staffs, Students, Teachers,
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Benefits of CRisMac KrishaK.

Provision made for using Adhar database in future System provides for recording multiple banking relationship including membership of SHG and MFIs at household survey stage. Provision for updating related market place intelligence on the customers Provision for independent biometric recording of finger prints with photographs available, as integral part of the security features along with KYC parameters Low cost of credit delivery System defined error free documentation Centrally controlled documentation process reduces the
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Benefits of CRisMac KrishaK.

Scientific appraisal & data supported computation significantly reduces the instance of default Significant relief to branch staff from extensive paper work in short time Assessment, appraisal & establishment of line of credit can be continued through out the year Assessment of current Yr. Target & provision for risk appraised credit planning upto 3 Yrs. Quantum leap in number of customers & values Minimum one thousand incremental Customers for R & SU hub Click to edit Master loan processing Efficient and scientific subtitle style for timely and adequate credit Leveraging beneficial financial products like delivery based futures contract eliminates price risk & settlement risk for the farmer and credit risk for lenders

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Benefits of CRisMac KrishaK.

Alert for Price volatility due to cyclicality of produce shortage & glut through market data analysis covering over 48 months period Commodities exchange platform enables farmers to sell their produce through delivery based futures contract thereby avoiding many layers of middle-men In the traditional market situation, the middle-men profit margin is over 60% of the retail price. However the price differential will be significantly reduced for the benefit of producer & consumers Scientific assessment of crop plan with risk mitigation approach and inclusion of crop & weather insurance significantly reduces risks to Click to edit uncertainties farmers due to Master subtitle style

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Conclusion
Win-Win Situation For Stakeholders

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Thank You !
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