Microfinance Firms

CreditAccess Grameen rallies 6% on hopes of strong earnings growth

Analysts believe the company is well positioned to capture huge untapped opportunity in MFI space via deeper penetration in new, existing geographies and increase in customer base.

Microfinance loan disbursal rise 19% to Rs 77,877 cr in Q3: MFIN Micrometer

Loan disbursals by microfinance companies increased 19 per cent to Rs 77,877 crore during December quarter 2022-23, said the MFIN Micrometer. The total microfinance loan portfolio increased to Rs 3.21 lakh crore as on December 31, 2022, the report said. "Microfinance loan disbursals during Q3 FY 22-23 improved to Rs 77,877 crore as compared to the same quarter of last financial year (Rs -65,392 crore). 189 lakh loans were disbursed during Q3 FY 22-23 as against 165 lakh in Q3 FY 21-22, indicating higher ticket size of new loans," it said. It further said that as on December 31, 2022, the microfinance industry served 6.4 crore unique borrowers, through 12.6 crore loan accounts. "The overall microfinance industry currently has a total Gross Loan Portfolio (GLP) of Rs 3,20,584 crore. GLP as on December 31, 2022, showed an increase of 25.2 per cent YoY over Rs 2,56,058 crore as on December 31, 2021," the report said. As per the 44th issue of MFIN Micrometer, 83 NBFC-MFIs were the larg

Kotak Mahindra Bank to acquire Sonata Finance for Rs 537 crore

The acquisition will be subject to regulatory approvals, including by the Reserve Bank of India (RBI)

BS BFSI Insight Summit 2022: SFB leaders discuss big dreams of small banks

Here is the list of leaders from Small Finance Banks on panel for the BS BFSI Insight Summit 2022

Microfinance loans grow 11% to Rs 71,916 crore in Q2 FY23: Report

Microfinance loans in the country grew by nearly 11 per cent to Rs 71,916 crore during the second quarter of the current fiscal, industry data showed. Microfinance loans worth Rs 64,899 crore were disbursed during the same period a year ago. In terms of volume, a total of 1.81 crore loans were disbursed during Q2 FY2022-23, as against 1.85 crore loans in Q2 FY2021-22, as per the latest report by Microfinance Institutions Network (MFIN). According to the MFIN Micrometer Q2 FY2022-23 report, the country's microfinance loan portfolio stood at over Rs 3 lakh crore at end-September 2022, serving 6.2 crore unique borrowers with 12 crore loan accounts. "The overall microfinance industry currently has a total gross loan portfolio (GLP) of Rs 3,00,974 crore as on September 30, 2022... an increase of 23.5 per cent year-on-year over Rs 2,43,737 crore as on September 30, 2021," the report said. Of the total micro loans outstanding, the largest share of 37.7 per cent is held by 13 banks, amoun

Muthoot Pappachan Group plans Rs 1,800-cr IPO for its microfinance arm

Muthoot Microfin, the microfinance arm of the Muthoot Pappachan Group, is planning to tap the capital markets with an initial share sale offer of Rs 1,500-1,800 crore by the last quarter of 2023. Delhi-based Muthoot Microfin is promoted by Muthoot Fincorp, which is the third-largest gold loan player and the flagship firm of Muthoot Pappachan Group. This is the third largest MFI with a client base of 2.2 million across 18 states and served by its 1,008 branches. As of September 2022, the company had an active loan book of Rs 7,500 crore. We are planning a Rs 1,500-1,800-crore IPO by the fourth quarter of 2023 and expected to file the IPO papers with the Sebi by May 2023, Thomas Muthoot, managing director of Muthoot Microfin, told PTI on Wednesday from Kochi. At Rs 1,500-1,800 crore, our IPO will be the largest from the MFI segment, Muthoot said, adding that Muthoot Microfin will also be the first MFI to cross the Rs 10,000-crore AUM mark by the time of listing. Muthoot Fincorp and

Having more than one SRO is good for business: Sa-dhan CEO Jiji Mammen

'Multiple SROs mean a greater number of watchful eyes'

Microfinance disbursements slowed in Q1 FY23 after new regulations: MFIN

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

Microfinance loan securitisation grows over two-fold YoY in Q1FY23

Better recoveries, adequate credit enhancements spark investor confidence

MFIs' gross loan portfolio rises to Rs 2.9 trillion at March-end: Report

The same stood at Rs 2.6 lakh crore in the year-ago period

Spandana agrees to resolve disputes with ex-MD Padmaja Gangireddy amicably

The board of directors of the company and its subsidiaries -- Criss Financial Limited and Caspian Financial Services Limited -- on Tuesday approved the settlement agreement, the company said

CreditAccess Grameen Q4 net profit jumps over two-fold at Rs 160 crore

Its profit after tax stood at Rs 56.3 crore in the same quarter of the preceding fiscal year

Sa-Dhan introduces credit assessment framework for microfinance borrowers

Sa-Dhan, a self-regulatory organisation for the microfinance sector, Thursday said it has introduced the credit assessment framework (CAF) for microfinance borrowers. Over the past one-and-a-half years, Sa-Dhan has worked to introduce a conducive and effective framework that will enable income assessment and risk profiling of borrowers, according to a statement. The CAF has been developed based on national and international models of poverty assessment like PPI (Progress out of Poverty Index) and Poverty Assessment framework of National Rural Livelihoods Mission, Government of India. The framework will help to supplement and improve the existing income assessment model of MFIs with verifiable wellbeing indicators, utilise and integrate existing data points of clients available with MFIs and provide a credit worthiness score (CWS), risk profiling for each client. It will also promote risk-based loan pricing and loan sizing and prevent over-indebtedness of vulnerable and low-income .

Microfinance business may attract closer scrutiny on the way it is done

The outstanding microfinance portfolio at Rs 236.1K crore as of June 2021 marks a seven per cent quarter-on-quarter de-growth and less than a per cent in year-on-year growth.

India's microfinance sector hit as defaults surge in Covid pandemic

Loan collection efficiency across the total loan pool has fallen to about 70% from a peak of nearly 95% in March, analysts say, indicating a potential build up in stress.

Microfinancing lessons from a mandi that govt-run Mudra seems to have lost

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

Microfinance player urges govt to curb rumours about loan waivers

The microfinance sector has faced some new problems amidst the continuing outbreak of coronavirus and the recent lockdown caused due to it, Satya Micro Capital said in a statement

NPAs rise in tandem as MFIs gross loan portfolios grow by 29% in FY20

More than 92 per cent of MFI loan disbursement in FY20 were in cashless mode, as compared to 85 per cent in FY19

MFIN may pool securities to access funds for small MFIs under TLTRO 2.0

Credit enhancement would entail guarantee from bigger institutions in case of defaults up to a certain percentage

MFIs staring at cash shortfall of Rs 2,600 crore in Q1FY21, says ICRA

ICRA has analysed a sample of 29 MFIs, which constitute around 70% of the MFI industry on a portfolio basis