Page 2 - Microfinance Industry

Microfinance sector's contribution to GVA to be 2.7-3.5% by 2025-26: Study

The impact of the microfinance sector on Gross Value Added (GVA) of the economy is expected to be between 2.7 and 3.5 per cent by 2025-26, according to a study report released on Thursday. The report, 'Present and Potential Contribution of Microfinance to India's Economy', was prepared jointly by MFIN, an association for microfinance entities, and National Council of Applied Economic Research (NCAER). It presents an analysis of the contribution of microfinance institutions to the overall economy in terms of income or 'Gross Value Added', a measure of the national economic output and employment. The MFIN-NCAER report points out that during 2018-19, the contribution of the microfinance sector as a whole, to India's GVA was 2.03 per cent. The projected contribution of the microfinance sector to overall GVA, including the backward & forward linkages by 2025-26 would be a significant 2.7 per cent in the base case scenario and nearly 3.5 per cent in best case scenario, the report ...

Financial services player Northern Arc group buys Smile Microfinance

The transaction involves taking over the microfinance portfolio of Smile along with its 150 branches catering to over 2 lakh customers served by around 850 employees

India Ratings revises microfinance sector outlook to 'neutral' for FY23

India Ratings has revised upwards its outlook on the microfinance sector to 'neutral' from 'negative' next fiscal, on the back of a revival in growth that could clip at 30 per cent. The agency expects the sector to grow 20-30 per cent in both FY22 and FY23 in comparison to the below 10 per cent AUM (assets under management) growth in the previous two years. Given the yield limitations, mid- and small-MFIs have not seen comparable growth. While large MFIs will continue with their normal disbursement trends and new customer acquisitions as normalisation happens in FY22 and FY23, small- and mid-ones will ramp up their activities once the harmonisation guidelines are implemented. The agency see that the impact of the pandemic on credit cost has been largely absorbed by now, and there is a likelihood of normalised growth for these small lenders. Also, their collections, especially those disbursed after the pandemic, have recovered and refinance has become relatively easy now. Another ..

Micro-loan securitisation volumes may see impact in Q4 due to Covid: Icra

The securitisation volumes in microfinance loans, which saw improvement in the first nine months of FY22, may witness some impact in the fourth quarter due to concerns over the third Covid-19 wave

Top headlines: Experts see rupee holding strong, Realme overtakes Samsung

Mobile device maker Realme has overtaken South Korean giant Samsung to grab the second spot in the branded smartphone market. More on that in today's top headlines

MFI sector improves after 2nd wave, caution needed on asset quality: Report

The microfinance industry showed an improvement in disbursements, asset quality and new loan inquiries in the September quarter, a report said on Tuesday

Asset quality pressures on micro-lending ease in Q2Fy22: CRIF High Mark

The gross loan portfolio in microfinance rose by 2.1 per cent growth at Rs 2.49 trillion at end of September 21.

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.

Spandana Sphoorty names Bharat Financial Inclusion's Shalabh Saxena MD-CEO

This comes after the exit of Padmaja Reddy as the CEO, who was also the founder of the company

MFIs should not throw caution to wind for higher asset growth: RBI DG Rao

The Deputy Governor said MFIs should focus on understanding the needs of customers first and offer them adequate level of support through appropriate financial products.

Microfinance loan portfolio rises 4.2% to Rs 2,37,369 cr as of June-end

The microfinance industry's gross loan portfolio (GLP) rose 4.2 per cent to Rs 2,37,369 crore as of June 30, 2021, compared with Rs 2,27,727 crore as of June 30, 2020, according to a MFIN report

MFI's gross loan portfolio slips 4% to Rs 214,528 cr till June: Sa-Dhan

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

Regulations key to orderly growth of microfinance

The RBI's CD defines microfinance clients based on the current household income limit applicable for NBFC-MFIs

Credit costs of MFIs may surge up to 10% by March 22, says Ind-Ra

In May 2021, the rating agency had predicted that overall the microfinance sector's collections could drop by a cumulative 10-15 per cent during the month compared to March 2021

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.

Microfinance loan portfolio grows 11.9% as on March-end, says MFIN

The industry's gross loan portfolio (GLP) surged to Rs 259,377 crore

Microfinance sector stares at sequentially challenging year: India Ratings

Collections in May could see shortfall of 10-15%; credit costs may escalate in FY22

Dual regulation is bad

MFI issues won't be solved by state regulation

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

MFIs prepared to deal with disruptions due to rising Covid cases: MFIN CEO

The microfinance sector is unlikely to face major challenges from the second wave of COVID-19 and is well prepared to face any disruption, Microfinance Institutions Network (MFIN) CEO Alok Misra said.