Page 4 - Mfis

Govt to provide one-time guarantee of Rs 10,000 cr for NBFC assets, bonds

This is an extension of its budget announcement, where it had said it would compensate them to the extent of 10% of the losses banks incur on their NBFC bond portfolio

Stimulus will keep NBFCs and MFIs afloat, but won't be able to revive them

It is important to wait for the entire package to come to see if the measures will improve demand in the economy in any manner

Why lending to MSMEs makes business sense

A large section of MSMEs is creditworthy and micro retail borrowers' cash flow allows them to repay bank loans fast

SBI to grant moratorium to NBFCs on case-by-case basis amid Covid-19 crisis

Considers 25 fresh credit proposals from shadow banks

RBI promises liquidity support to NBFCs, MFIs dealing with cashflow issues

RBI has put the ball in banks' court on the moratorium issue

RBI has made life a bit easier for NBFCs, MFIs amid Covid-19 pandemic

The RBI has indicated that it expects inflation to come down by September, which means that more rate cuts are in the offing

NBFC-MFIs seek clarity from RBI on 3-month moratorium on loans

RBI seeks data on drawdowns, bank loans, exposure to NCDs and CPs

Covid-19 impact: Confusion over moratorium norms hit smaller MFIs hard

Many are worried about not being able to meet their loan obligations this month; several either have started defaulting or are about to

Why microfinance crisis is still not over even 10 years after the clampdown

Andhra Pradesh's Ordinance to regulate MFIs has been a double-edged sword for the poor, with some digging deeper into debt, writes Namrata Acharya

Bring not-for-profit microlenders under regulatory framework: MFI body

Currently, NBFC-MFIs are regulated by the Reserve Bank of India but not-for-profit organisations and SHG-promoting- institutions

New RBI guidelines likely to help MFIs become small finance banks

The fact that SFBs open paths to universal banks is assuring to some market players

RBI increases lending limit of MFIs to Rs 1.25 lakh from Rs 1 lakh

The income and loan limits to classify an exposure as an eligible asset were last revised in 2015

After lukewarm response to Spandana IPO, other MFIs re-evaluate IPO plans

In the next few quarters, at least two other MFIs, Arohan and Muthoot Microfin are planning for an IPO

Spandana Sphoorty IPO: From strategy to growth, a promising revival story

Still in the early phase of new set up, FY17-19 has been the fast growth periods for the MFI. Yet, in a space not densely populated by listed players, Spandana ranks third

MFIs, small banks will need external capital of Rs 4,700 cr in three years

Rating agency ICRA in its outlook for the microfinance sector said that more than 90 per cent of the capital raised in FY2019 was by the MFIs with AUMs of greater than Rs 1,000 crore

MFIs working on Rs 5-bn loan pool for sale to banks to ease liquidity

Kolkata, 7 NovemberTo overcome a liquidity problem in the sector, micro finance institutions (MFIs) are coming together to sell a bundled securitisation portfolio of about Rs 5 billion to banks.Loans in the books of MFIs will be consolidated in one pool. And, offered for sale to banks which will buy MFI portfolios. In general, banks buy such pools through bilateral or one-on-one deals, to meet their priority sector lending targets. According to a senior official of the MicroFinance Institutions Network (MFIN), about 70 per cent of the proposed pool will comprise the loan books of small and medium-sized entities. Participation from bigger and stronger MFIs will support the pool, as it will provide buyers the comfort of a good rating. MFIN is looking to complete the process in the next 10-15 days, said sources. The decision to create the pool was taken last Thursday, at a meeting called by MFIN with lenders, rating agencies and non-bank finance corporations (NBFCs) to discuss the ...

MFI liquidity crisis: Rs 5 bn needed next quarter; some freeze fresh loans

Even bigger MFIs have cut their fresh disbursement due to liquidity crunch

MFIs see slowdown in bank funding despite a fall in the cost of funds

The average cost of funds for MFIs is 12-15 per cent, depending on their size

MFIs need up to Rs 11,000 cr over next three years: Report

In FY17, MFIs and SFBs raised an aggregate of Rs 4,713 crore of equity capital

Recovery for Bharat Financial and Ujjivan some time away

Stocks of micro finance institutions (MFIs) and small finance banks (SFBs) are yet to pick up after a weak March quarter performance. Ujjivan Financial Services and Bharat Financial Inclusion have seen 6-11 per cent erosion in their stock prices since their Q4 results. It is anticipated that the recent developments, particularly on farm loan waiver, may put further pressure on these stocks. As it comes at a time when the overall collection efficiencies are improving, investors need to wait for more clarity on how these developments have affected the collection discipline. This is also an important monitorable as the collection efficiency in five key states - Maharashtra, Karnataka, Madhya Pradesh, Gujarat and Uttar Pradesh, are yet to show a strong recovery. A recent report by India Ratings & Research (Ind-Ra) highlights that these states account for 90 per cent of the total default in stressed transactions where the payment period has been less than nine months and are rated by ..