BSD Circular No.12 of 2002

Circular No.13
April 24, 2002

The Chief Executive(s),
Micro finance Institutions

Dear Sirs,

In terms of Section 8 of the Microfinance Institutions Ordinance, 2001, the Microfinance Institutions (MFIs) may, with the approval of State Bank of Pakistan, open new branches/places of business in the specified areas. In order to streamline the process of opening / closing of branches by the Microfinance Institutions the State Bank of Pakistan has prepared the attached Branch Licensing Policy. The MFIs shall open/close/shift their branches strictly in accordance with the said branch licensing policy.

2. In terms of the attached Branch Licencing Policy, every Microfinance Institution shall submit to the State Bank an Annual Branch Expansion Plan (ABEP) at least 30 days before the commencement of the year to which the plan pertains. However, the ABEP for the year 2002 may be submitted within one month of the issue of this circular.

3. Please acknowledge receipt.

Yours faithfully,

sd/-
(Jameel Ahmad)
Director

ANNEXURE-"A"
BRANCH OPENING FORM (NAME OF THE MICRO FINANCE INSTITUTION)

PART –1
1. Name of the Microfinance Bank / Institution.
2. Total number of branches.
3. Paid up capital.
4. Adjusted Capital (as per last SBP Inspection Report).
5. Total Deposits.
6. Capital as % of deposits
7. Fortnightly position of liquidity ratio during the preceding 12 months.

PART –II
1. Name of the proposed branch.

2. Exact Location of the proposed branch (also mention any other name by which the place is popularly known, if any) with postal address.

3. i) Tehsil/Taluka
ii) District
iii) Division

4. Whether suitable premises available?
If not what arrangements are proposed to be made.

5. Name and Location of nearest MFI/MFB/Khushhali Bank branches with approximate distance in meters/kilometers from the proposed place of the branch.

Name of the Branch / Place of business	Distance
(1) Microfinance Bank/ Institutions. (2) Other Microfinance Banks/Institutions/ Khushhali Bank Branches. i) ii) iii) iv) v)

6. Population of the area of
a) Approximate population of the area, the proposed branch plans to serve
b) Latest published Poverty Statistics of the area

7. Year-wise estimate of business, which the proposed branch expects to attract/undertake within 3 years of its operation.

	1st Year	2nd Year	3rd Year
i) No. of Community Organizations/Village Organizations/Urban Groups to be formed
ii) Membership of COs/VOs/UGs with Male, Female breakup
iii) Amount of Deposit
iv) No. of Savers/Depositors
v) Amount of Advances
vi) No. of Borrowers

	1st Year	2nd Year	3rd Year
a) Interest/return on advances
b) Other sources, due details.
Total:

	1st Year	2nd Year	3rd Year
a. Interest/return on various types of deposits.
b. Staff Salaries and Benefits
c. Premises-Rent etc.
d. Traveling Expenses
e. Vehicle Running & Maintenance
f. Capacity Building Trainings etc.
g. Stationary
h. Advertisement
i. Other expenses
Total:

	1st Year	2nd Year	3rd Year
10. Profit/Loss anticipated (8-9)
11. Social Mobilization Cost to be financed through MSDF resources.
12. Profit / Loss with access to MSDF resources (10+11)
13. Estimated period (if beyond three years) Within which the proposed branch is expected to become a profitable unit

______________________________
Signature of the Survey Officer

1. Name:____________________
2. Designation:______________
3. Date of Survey:___________

12. a) Certificate
Certified that the name of the proposed branch is in accordance with the Census/Municipal/Town Committee and/or Revenue Records.

______________________________
Signature of the Survey Officer

b) Certificate
Certified that the location of the proposed branch shall in no way violate the Town Planning Regulations of the respective authorities.

______________________________
Signature of the Survey Officer

_____________________________________________________________
Signature of the Officer recommending Opening of the Branch

1. Name: __________________
2. Designation: ____________
3. Date: ___________________

N.B: Strike out fields not applicable

ANNEXURE ‘B’
PARTICULARS OF THE BRANCH CLOSED
(Micro Finance Bank / Institution)

1. Name of the Micro Finance Bank / Institution:____________________
2. Name of the Branch closed:_______________________________________
3. Licence No._______________________ Dated:_________________________
4. Date of closure:___________________________________________________
5. Reason necessitating closure (in detail):___________________________
____________________________________________________________________
6. Working results viz. Deposits and Number of Depositors, Advances and Number of Borrowers, COs formed and their Membership, Profit/Loss and Number of Accounts (Category wise) as at end of the last financial year and on the date of closure).:_______________________________________________________
7. Distance of nearby Microfinance Bank / Institution branches from the closed branch.
8. Licence No.____________________ Dated__________________________ is sent herewith for cancellation.

(Signature of an Officer not below the rank of Senior Vice President of the Head Office or equivalent)

1. Name of the Microfinance Bank / Institution:________________________
2. Name of the Branch shifted:_______________________________________
3. Licence No._______________________ Dated:_________________________
4. Premises from which shifted:______________________________________
5. Exact location of the premises to which shifted:____________________
______________________________________________________________________
6. Date of shifting:____________________________________________________
7. Reasons necessitating the shifting (In detail)_________________________
______________________________________________________________________
8. Distance (in meters/kilo meters) of the old premises with nearest branches of other Microfinance Banks / Institutions.

	NAME OF MICROFINANCE BANK/INSTITUTION	NAME OF BRANCH	DISTANCE
(a)
(b)
(c)
(d)
(e)
(f)

9. Distance (in meters/kilo meters) of the new premises from the nearest branches of other Microfinance Banks / Institutions.

	NAME OF MICROFINANCE BANK/INSTITUTION	NAME OF BRANCH	DISTANCE
(a)
(b)
(c)
(d)
(e)
(f)

10. Certified that location of new premises does not violate the Town Planning Regulations of the concerned authority.

____________________


(Counter Signature of an Officer not below the rank of Sr. Vice President of the Head Office or equivalent with date).	Signature of Officer In charge of the Branch with date).

ANNEXURE "D"
PARTICULARS OF TEMPORARY PLACE OF BUSINESS OPENED UNDER AUTHORITY OF PARA 4 OF THE BRANCH LICENSING POLICY

1.Exact location: ______________________________________________________
2.Occasion for which opened: __________________________________________
3.Period of operation:
i) Opened on: _________________
ii) Closed on: _________________
4.A copy of the request of the concerned authority on the basis of which the temporary place of business was opened is enclosed.

(Signature of an Officer not below the rank of Senior Vice President of the Head Office Or equivalent)

Dated: ___________