MFIs

The gross micro loans portfolio grew 20 per cent to Rs 3.16 lakh crore in the quarter ended December 2022 as compared to the year-ago period, a report said on Friday. The gross loan portfolio growth came at 5.5 per cent when compared to the September quarter, according to the report by credit information company Crif Microlend. Delinquencies of advances overdue for over 90 days by value declined 1.7 per cent while as a percentage of overall advances, it was at 2 per cent at the end of December 2022 as against 2.7 per cent in the year-ago period. The coronavirus pandemic had impacted the microfinance sector as field agents were unable to visit borrowers to extend loans and also ensure timely repayments. The report said that non-bank finance companies continue to dominate the market with a 35.7 per cent share, followed by banks at 33.5 per cent and small finance banks at 16.9 per cent.

The interest income expanded by 25% YoY to Rs 2,414 crore and sequentially, it rose 9.7% from Rs 2,201 crore in Q2FY23

One reason for this shift in trend could be that banks faced challenges in managing this asset class, especially after the outbreak of the Covid-19 pandemic and the resultant lockdowns

'Multiple SROs mean a greater number of watchful eyes'

Lenders needed time to make policy changes after norms were updated in March 2022, says industry group

There has been exponential growth in P2P lending in recent years

Fund flow to the sector has improved but some smaller MFIs still find it difficult to access finance from banks

Better recoveries, adequate credit enhancements spark investor confidence

Gets $15 mn in equity from French investors, total fundraise reaches $100 mn

P N Vasudevan resigned as the managing director and chief executive officer of the Equitas Small Finance Bank for a career in health and education.

The freedom to fix interest rates has encouraged a few MFIs to jack up rates on Day One. It will take a while for borrowers to get the benefit as products, processes and digitisation evolve

Sources say many details yet to be worked out, and that it isn't clear if talks will lead to a comprehensive pact to end strife. Clarity expected in 10-15 days, they add

As on September 2021, the total loan portfolio in entire eastern India stood at Rs 2,25,331 crore, a growth of 1.4 per cent year-on-year

RBI's new rules for microlenders, who have been deeply impacted in pandemic because of loan losses, will help widen profits by giving such entities greater flexibility in operations, a report said

The RBI finally had to step in since self-regulatory organisations have failed to address a few banks' enthusiasm for overleveraging hapless small borrowers

The size of loans and tenure of repayment can be increased. MFIs should also be allowed to give secured micro loans, depending on the end use and quantum, if we want to change the poverty landscape

'MFIN has been pushing its members to do daily reporting to credit bureaus', said Misra

Next year to be better; but spurt in Covid-19 cases poses risks

ICRA on Monday revised downwards the FY2022 growth outlook for assets under management (AUM) of NBFC-MFIs to 12-14 per cent but expects it to improve to 18-22 per cent in the financial year 2022-23.

Seek allocation of Rs 15,000 cr for FY23, of which at least 75% should be earmarked for small and mid-size MFIs