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RCBC MICROFINANCE PROGRAM HITS PHP 200 MILLION DISBURSEMENT LEVEL
RCBC's microfinance business hit the Php 200 million disbursement threshold this past week ending May 13. Lending activities started last July 1, 2009.
Disbursements totaled Php 200,200,000 and the businesses' outstanding loan portfolio totaled Php 32,789,887. Over 4,500 loans have been disbursed since the start of microfinance lending operations and to-date active borrowers total 864 micro entrepreneurs. Average loan disbursement amount is Php 44,000. Portfolio-at-risk (PAR) 1-day & above ratio is a comfortable 0.77%
These disbursements emanated from lending offices in Laguna province (Calamba, Cabuyao), Batangas province (Tanauan City, Rosario, Lemery, Bauan, Nasugbu, Laurel), Quezon province (Candelaria), Occidental Mindoro province (San Jose City), South Cotabato province (Koronadal City) and Davao City.
RCBC expects to extend its microfinance business to Tagum, Davao del Norte and Digos, Davao del Sur by the 3rd quarter 2011.
RCBC projects that it will hit the Php 300 million disbursement threshold by November 2011 supported bygeographical expansion through the establishment of 3 new MBOs in southern Luzon and 2 new branches in southern Mindanao.
RCBC's microfinance business in southern Luzon is housed within President Jose P. Laurel Rural Bank, Inc. based in Tanauan City while the bank's business in southern Mindanao is housed within Rizal Micro Bank (Merchants Savings & Loan Association, Inc.)
The microfinance business caters primarily to micro entrepreneurs through the disbursement of working capital loan facilities with tenors between 3 – 6 months. The loan product carries the brand name PITAKA.
The PITAKA Loan portfolio is composed of borrowers from various industries in the microenterprise sector, such as, market vendors (20%); viajeros & traders/buy & sell (14%); personal services (beauty parlors, repair shops, etc.) and sari-sari stores account for 12% each; eateries/carenderias/bakeries (8%); crafts & light manufacturing (3%); agriculture and food processing account for 1% each; and, other allied businesses (such as cellphone loading stations, direct-selling, auto supply, flower shop, beauty products, etc.) which accounts for 29%.