BFC in Nepal

The project’s main objective, over a 30-month period, is to strengthen the partner banks (PBs) in their capacities to expand their business in rural/agricultural MSME lending in a sustainable and socially responsible manner as well as provide support to agricultural and rural MSMEs in improving their financial literacy and business management skills and enhance productivity through implementation of good agricultural practices.

Equipped with a team of international and local consultants, in April 2018 BFC commenced building relationship with the two SEDRA partner banks — Global IME Bank and OM Development Bank and project stakeholders on the ground.

BFC Nepal SEDRA Team group picture, June 2019

Strategy workshop delivered by SEDRA team for Global IME Bank. Kathmandu, August 2018

ODBL and BFC visit to a dairy farm in Pokhara, June 2018

Meeting with KfW at BFC Nepal office. Kathmandu, November 2019

SEDRA team at Global IME Bank’s 13th anniversary celebration with the Chairman and CEO. Kathmandu, January 2020

First client meeting workshop delivered by SEDRA team for Global IME Bank. Kathmandu, February 2019

Training on credit analysis approach delivered by SEDRA team for branch staff of Global IME Bank. Butwal, July 2019

SEDRA and KfW visiting World Peace Pagoda in Pokhara, April 2018

Discussion during strategy workshop delivered by SEDRA team for Global IME Bank. Kathmandu, August 2018

SEDRA-GIBL workplan presentation. Kathmandu, June 2018

Signing a partnership agreement with Shreenagar Agro Farm. Kathmandu, December 2018

Training of Trainers delivered by SEDRA team for Global IME Bank Head of Provinces and Department Heads. Kathmandu, January 2020

A group discussion and presentation during the strategy workshop delivered by SEDRA team for Global IME Bank. Kathmandu, August 2018

SEDRA team meeting with Global IME Bank’s HR team. Kathmandu, November 2019

A joint site visit to Global IME Bank’s agricultural client, on-the-job coaching by SEDRA team on new credit analysis approach and agricultural technical cards. Chitwan, January 2020

Training participants are working on practical exercises during the training on credit analysis approach delivered by SEDRA team for branch staff of Global IME Bank. Chitwan, January 2020

A joint site visit to Global IME Bank’s SME client – poultry farm, on-the-job coaching by SEDRA team on new credit analysis approach and agricultural technical cards. Chitwan, February 2020

On-the-job coaching by SEDRA team on sales enhancement and customer tracking forms. Kathmandu, August, 2019

In April 2018 SEDRA kicked-off at another partner Bank – OM Development Bank, later acquired by NMB Bank. Cooperation with NMB bank commenced in August 2019. It should be noted that NMB bank was awarded 'The Banker's Bank of the Year in Nepal’ award in 2017 and 2018.

Sales enhancement and centralized sales management
Optimized credit analysis methodology
Automation of agricultural business analysis using a database of agri tech cards and an expert scorecard
Business requirements to CRM and a loan origination system (LOS)
Integration of the LOS with the Credit Information Bureau
Customer capacity building / non-financial service

Technical assistance to NMB Bank is expected to be completed by December 2020.

Training session on Sales Enhancement for Pilot branches in Biratnagar, February 2020

Workshop for Head Office MSME lending team of NMB on Sales Enhancement Pilot activities. Discussion of communication strategy towards existing MSME/AGRI clients, January 2020

Site visit together with RMs from Gwarko branch of GIBL to MSME client. On-the-job coaching activities on alternative credit analysis, August 2020

Training for Pilot branches in Butwal area on Alternative credit analysis, March 2020

On the job coaching on alternative credit analysis in Pilot branches in Biratnagar area

Sunawal branch of NMB. After on-the-job coaching activities and discussion of the results of Sales Enhancement activities, February 2020

On the job coaching on alternative credit analysis. Site visit to MSME together with NMB RMs, February 2020

Deputy Head of Province NMB. Training session for Biratnagar on Credit process analysis, March 2020

Customers acquisition activities. Phone calls to dormant clients. Manigram branch NMB. On-the-job coaching, February 2020

Site visit together with RMs from Manigram branch NMB. On-the-job coaching on alternative credit analysis, March 2020

Site visit together with RMs from Sunawal branch NMB. On-the-job coaching on alternative credit analysis, March 2020

Workshop for Head Office MSME lending team of NMB on Sales Enhancement Pilot activities. Discussion of feedback from Deputy Head of Province on communication strategy towards existing MSME/AGRI clients, January 2020

Under SEDRA, we also directly worked with entrepreneurs and businesses to improve their capacity to manage businesses and become eligible for bank finance. SEDRA has worked across all the provinces of Nepal, however, our funding activities have been focused in Province 5, 6 and 7.

In addition to this, the team travelled across provinces 1, 2, 3, 4 and 5 of Nepal, and interacted with numerous agri entrepreneurs to understand their limitations and areas where they would require capacity building interventions. The team has also visited numerous branches and outlets of the partner banks in the aforementioned provinces while fulfilling its mission as the program consultant.

SEDRA partnered with a local agri firm Shreenagar Agro Farm (SAF), a pioneer in the area of poultry and feed production, who anchored SEDRA’s capacity building intervention in the area of Financial Literacy, Business Management and Good Agriculture Practices for poultry farmers.

Training SAF staff, on delivering capacity building related training to farmers, facilitated the sustainability of our interventions as SAF took ownership of the toolkits developed and ensured continuity to the training with minimal assistance from SEDRA.

We also tested the launch of a value chain finance product under a partnership between Global IME Bank and SAF, through which the optimized business process, including an automated model with integrated agro tech cards to objectively evaluate the agriculture sector, was successfully tested by the bank, while SAF staff were trained on marketing the product to its customers.

Participation in Agri Expo with SAF & GIBL to Market VCF loan product, January 2019

Shreenagar Agro Farm Staff participating in SEDRA training

Training of farmers by Shreenagar on Financial Literacy

Participation in Agri Tech Expo with Shreenagar and Global IME Bank

Marketing materials developed for Shreenagar by SEDRA

Financial Literacy and Business Management Training of Trainers for Shreenagar

Meeting with Shreenagar to discuss VCF, June 2018

Training of Shreenagar staff on Financial Literacy and Business Management in Butwal, 2019

Shreenagar Agro poultry farm, Butwal area, April 2018

Not limited to poultry, we also developed information leaflets to help farmers understand and implement good agriculture practices, which will support them in improving their agricultural cycle management and improve productivity. Further, SEDRA also developed:

Toolkits for NMB Bank to conduct Financial Literacy and Business Management Training for commercial farmers and handicraft entrepreneurs
Toolkits to improve the capacity of farmers to understand and select relevant renewable energy technology while availing bank finance through NMB bank.
Three animated videos covering the basics of saving, credit and payment, with the objective of providing Global IME Bank with tools to reach out the larger audience in an effort to improve financial literacy.
A radio program with Global IME Bank, wherein the bank representatives covered various topics about banking services and how customers can leverage on banks for financial planning.

SEDRA has also been active in supporting NRB. As such, the following interventions were undertaken:

A concept note on Regulation on Credit Information Bureau of Nepal (CIB) was developed and shared with the aim to facilitate improvement of data sharing and quality of information supplied by the banks.
An exposure visit to Armenia was carried out in September 2019 to showcase the best practices of uncollateralized lending, revolving fund management, credit bureau regulations, and a liberal deregulation of the market in terms of access to foreign funding.
A concept paper on regulatory recommendations for the banking sector is expected to be delivered in 2020.

SEDRA and NRB teams have also been meeting on a regular (quarterly) basis to touch base regarding project accomplishments and discuss any follow-up points or areas of support required.

Study Tour to Armenia for Nepal Rastra Bank, September 2019

Since April 2018 SEDRA has been taking part in the regular (quarterly) meetings of the Financial Sector Development Partners Group (FSDPG), and has been interacting with development partners in Nepal by sharing data on interventions undertaken and staying updated about developments in the Nepalese financial sector. Further, SEDRA also joined hands with GIZ Nepal to identify potential opportunities for connecting the stakeholders in the Medicinal and Aromatic Plants (MAPs) sector with the project’s partner banks.

Not limited to work, but yes celebrations to make employees motivated. BFC creates a platform for its employees to celebrate traditions, culture and the festivals. Taking an enjoyable break, celebrating different occasions at the office helps to build positive morale to the team which then acts as a motivating factor for team building.

Team Building is very important as it helps to form a unity setting positive vibes.

Team building and working closely together have been key factors to the SEDRA project’s accomplishments so far. BFC believes that having employees celebrate traditions, culture and the festivals can build on the positive morale and motivation of the team.

So we took time to celebrate local festivals such as Dashain and Tihar , by decorating the office and enjoying the festive time together.