The Growth of Madura Microfinance over the Years

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Report of the field trip to Chidambaram office of Madura Microfinance Limited

Mr. K. M. Thiagarajan- the founder The officials at the Chidabram regional offce

Amrita Juhi
Roll no. 57
The structure of this report is as follows:-
1. Growth of Madura Microfinance Ltd. over the years
2. Organizational Structure in Madura
3. Operations of Madura Microfinance
4. Meeting with a SHG in Bhuvanagiri

Growth of Madura Microfinance over the years
Bank of Madura (BoM) began in 1943. Mr. K.M. Thiagarajan was the founder. He started the rural banking operations in 1995. The target was women, as they believe that involvement of women is instrumental in economic development of society as a whole. Also, Women are more responsible with money as their mobility is reduced due to family responsibilities. By, 2000 they had more than 1500 Self Help Groups. In 2000, BoM merged with ICICI Bank as they believed that merging with a nationalized bank will help them in higher growth possibilities. In 2002, the partnership ended as ICICI wasn’t interested in the development of women and SHG’s, which led to the formation of Microcredit Foundation of India. By, 2003 number of groups had risen to 10000. They applied for NBFC license in 2005 and were declared an NBFC by RBI in early 2006.

There are 9 regional offices – Madurai I, Madurai II, Trichy, Karaikudi, Sivagangi, Selam, Chidambaram, Tindyvanam and Chennai. The headquarters are also in Chennai. There are a total of 57 cluster managers in a total 108 cluster centers controlled by these 9 regional offices. Each cluster center is a cash point. Under Chidambaram office alone, there are about 5000 SHG’s. Under each cluster centre, There are about 650- 700. Regional HR takes care of 6 cluster managers. There are about 16- 20 members per SHG. Rs. 7500 is given to each person in the beginning. Maximum...
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