1. Cecile Tanael
President, Rural Bank of Mabitac
2009 RBAP-MABS National Roundtable Conference
May 12-13, 2009
Hyatt Hotel and Casino
Manila

2. WHAT HELPED RB MABITAC
REDUCE AND KEEP
DELINQUENCY AT BAY

3. • Incorporated in 1974.
• The pioneer in providing microfinance loan
(individual approach) in the communities it
serves.
• Network of 8 branches located in Laguna and
Quezon provinces;
• Deposit base distributed among more than
17,500 small regular savings accounts.

4. No. of branches 8
Total assets PhP 353.0 M
Bankwide Loan Portfolio PhP 222.0 M
Deposits PhP 234.0 M
Net Worth PhP 43.0 M
Gross Income PhP 73.0 M
Deposit to Loan Ratio 105%

5. (Amount in million pesos)
‘03 ’08 Growth
No. of branches 8 8 0%
No of Staff 20 82 310%
Assets 182.0 353.0 94%
Portfolio 123.0 222.0 80%
Deposits 133.0 234.0 76%
Net Worth 19.0 43.0 126%
Gross Income 32.0 73.0 128%

6. • Joined the MABS Program in 2003, a USAID
funded program for microfinance capacity
building.
• Developed and introduced a microfinance loan
product, named KABALIKAT;

7. (2003 – December 2008)

8. (2003 – December 2008)

9. (2003 – December 2008)

10. As of December 2008
Active clients 6,370
Portfolio outstanding Php 41.0 million
PARR > 7 Days 8.64%
PARR > 30 Days 6.44%
Cum. No. loans disbursed 36,118
Cum. Amount of loans disbursed Php 625.0 million
Micro-Deposit balance Php 19.7 million

11. As of December 2008
• 40% of the bank’s clients are micro-borrowers;
• 15% of the bank’s total loan portfolio is
invested in microfinance.

12. • RAPID EXPANSION
• NON COMPLIANCE TO P&P
• WEAK MONITORING SYSTEM
• INCIDENCES OF FRAUD
• OTHERS: CALAMITY/DISASTER

13. - Make use of available reports and tools
a) PAR AGING
b) Performance Per AO
c) Performance Per Branch
d) PAR Trending Analysis
• Implement actions based on the result of the
analysis done.

15. - Ensure that best practices are followed.
- Define steps on loan monitoring.
- Define steps on loan analysis.

16. - Attended trainings conducted by MABS
- Put in actions what we have learned
• Constant follow up on the proper
implementation of new policies & procedures.
- Conduct in-house trainings for MF staff.

18. - Appointed MF Program Manager and
Area Supervisors to strengthen monitoring of
branches.

19. • Helps the MF team to monitor especially in the
compliance with policies and procedures as
written in the manual.
• Implemented internal audit policies to prevent
FRAUD.

20. 1. SOUND CREDIT POLICIES CUSHIONED
THE EFFECTS
- good client selection
- diversified loan products
- conservatism in appraisals
2. BACK UP, BACK UP, BACK UP;
3. RESTRUCTURE, only when necessary
4. WRITING OFF hard accounts
5. FINANCIAL STABILITY – Best Preparation of All.