Improving Portfolio Quality: The Janashakti Case
Women's Development Federation (WDF) popularly known as Janashakti has been serving over 30,000 rural women clients in Hambantota, Sri Lanka since 1989. Janashakti is a grass root level organization, owned and managed by its members, and a member of the Women's World Banking (WWB) global network.In 2002, Janashakti was facing serious portfolio quality problems with the institution's PAR 30 days (Portfolio at Risk) climbing as high as 42%, threatening its future. However, with technical assistance from WWB, Janashakti has been able improve the efficiency in managing delinquency, which has resulted in a reduction of its PAR 30 days to 4.9% by the end of 2005.This case study illustrates the strategies implemented for managing delinquency and the challenges and key lessons learnt from this experience. WWB hopes that Janashakti's experience can help other microfinance institutions who are facing similar issues.