The industry body said smaller MFIs are finding it difficult to mobilise additional/new investment
The industry closed the first six months of the current fiscal with asset growth of only five per cent, rating agency ICRA NSE 0.06 % said in the report released on Wednesday.
If the RBI agrees to this suggestion, 50 million MFI customers will join the current net of 60 million and an outstanding portfolio of Rs 2.45 trillion
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M Rajeshwar Rao urges them not to forget sector's original mandate of financial inclusion, as over-indebtedness by borrowers, coercive recovery would roll back gains achieved over the years
Sa-Dhan has issued a press release basis the letter written to the Finance Minister
The microfinance industry's gross loan portfolio (GLP) marginally declined by around 4 per cent to Rs 214,528 crore as of June 30 this year, against Rs 224,205 crore as of June 20, 2020
The Gross Loan Portfolio (GLP) for NBFC-MFIs had grown only 11 per cent year-on-year in FY 2021.
Do we need yet another refinance agency? No one will shed a tear if Mudra is given a decent burial
India Ratings and Research revised upwards its credit cost estimate for microfinance institution (MFI) sector to 5-10 per cent in the current financial year compared to earlier 3-6 per cent
The collection efficiencies of its rated microfinance institutions (MFIs) and smaller non-banking finance companies (NBFCs) have dropped to 65-85 per cent during the first quarter of fiscal 2022.
Scheme extended to term loans from banks to MFIs for on-lending; tenure of loan extended to 36 months from 18 months earlier, with cap on interest rate charged by banks
According to CRIF Micro Credit, Assam was one of the most stressed states in terms of microfinance loans
Banks continue to dominate the market share of 42 per cent.
The large NBFC-MFIs have not rationalised their lending rates, despite achieving economies of scale.
85% qualifying asset rule for MFIs may be tweaked to assist diversification
The rating action factors in the significant increase in delinquencies and the pressure on profitability and growth in light of the Covid-19 pandemic
Collection efficiency of MFIs likely to drop to 75-80% in May, from 90-95% in March, creating asset quality pressures
Collections in May could see shortfall of 10-15%; credit costs may escalate in FY22
MFI agents hand out 15-day loans in cash with a lecture on vaccines to the women, who would otherwise approach money lenders to buy vegetables in bulk and sell at the market next to the Ganga