Grameen Foundation : Resource Center : Print Newsletter : Fall 2007 : A Conversation with Udaia Kumar
A Conversation with Udaia Kumar, CEO of SHARE
SHARE Microfin Ltd, established in 1989, is one of the largest MFIs in India, currently serving more than one million clients across five states. Mr. Udaia Kumar is the Chairman and Managing Director of SHARE. He recently sat down with Grameen Foundation’s Mike Getubig for an exclusive interview.
MIKE GETUBIG: When did your partnership with Grameen Foundation (GF) begin?
UDAIA KUMAR: We were associated with the Grameen Foundation from its beginning. And I had the privilege and the opportunity to talk to Alex Counts [while he was studying at the Grameen
Bank], I also remember him taking an interview and publishing a book called Give Us Credit…and it was at that point that I came to know of Alex Counts. And when he published that book, then I realized that he was a great communicator and writer.
MG: How else has GF worked to support SHARE?
UK: Grameen Foundation has spoken with different stakeholders in India, and they have helped in trying to get a fair policy [for microfinance] in India. Grameen Foundation also has written good articles in newspapers about microfinance, not only in India, but also outside India, and tried to share the Indian experience with people who live outside the country. The media support has been quite good. GF also provides guarantees…where banks can connect with MFIs, and get more comfort because a third party is introduced.
MG : What is your view on the changing landscape of increasing competition between MFIs?
UK : Any activity which is profitable and has a good impact would definitely attract more individuals to take up such activity. I feel that competition is good for both the clients and for MFIs. If there is a monopolistic situation, then naturally the costs will be higher…you can see that our rates have, over a period of time, come down, because of competition. It also helps with efficiency: providing need-based services to the clients, providing the right kind of service to the clients. Institutions will have to design the right kind of products and reduce their operating costs. So I feel that competition is something that is good for everybody, and we encourage competition.
Grameen Foundation : Resource Center : Print Newsletter : Fall 2007 : A Conversation with Udaia Kumar
Grameen Foundation uses microfinance and innovative technology to fight global poverty and bring opportunities to the world's poorest people. With tiny loans and financial services, we help the poor, mostly women, start businesses and escape poverty. Our global network of 55 microfinance institution (MFI) partners including our Growth Guarantee partners has touched more than 34 million people in 24 countries. In addition, we introduced and now sustain technology initiatives (Mifos and Village Phone) in Cameroon, Kenya, Rwanda, and Uganda, bringing our total country outreach to 28.
+1-202-628-3560 www.grameenfoundation.org
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