Page 3 - Microfinance Institutions

Covid-19: MFIs to face asset quality pressures in near term, says report

The microfinance industry is likely to face asset quality pressures in the near term due to the recent surge in COVID-19 infections and localised restrictions, says a report.

Second Covid-19 wave: Curbs beyond a month to hurt biz, says MFIN

Alok Misra, chief executive of MFIN, said recoveries and collections remained above 90 per cent level in March

Why we need uniform micro loan regulations

The Election Commission must ban loan waiver poll promises by all political parties. If their hearts bleed for the poor, they can always use the party funds to pay off the lenders

RBI move to harmonise MFI norms to improve sector competitiveness: Ind-Ra

Rating agency urges level-playing field for finance cos

CLSA sees 31% upside in RBL Bank on stable deposits, robust credit card biz

In a report dated January 5, CLSA said the bank is re-aligning its product portfolio and is now focusing on key retail-asset niches

MFI collections in July spurt to 70-75% of pre-Covid level: Crisil

April was worst, with near zero collection

MFI collections rebounds by 70-75% after Covid-19 restrictions ease: Report

It further said to create a buffer for potential pandemic-related credit costs, MFIs are expected to focus on raising additional equity capital over the near to medium term

MFIs could lose Rs 1,500 cr on foregoing moratorium interest on interest

Industry fears waiver of interest on interest would distort credit culture, may encourage borrowers who can pay to defer repayment

Lockdown 4.0: Normalcy returning for shadow lenders, albeit at a slow pace

Enquiries for fresh loans see uptick

Sitharaman gives liquidity boost of Rs 75,000 cr to shadow banks, MFIs

Sitharaman announced a special liquidity scheme of Rs 30,000 crore for NBFCs, housing finance companies (HFCs) and MFIs, which are finding it difficult to raise money from the debt markets.

Microfinance institutions on a knife-edge with collections taking a big hit

With collections taking a big hit, microfinance institutions will be put through the wringer, reports Raghu Mohan

NBFCs ask FM to offer credit guarantees to banks on loans extended by them

Industry has also pitched for SPV with initial funding from govt, to help refinance small and mid-sized NBFCs

Sidbi to provide liquidity support to NBFCs, MFIs with 90-day term loans

NBFCs and MFIs have been hit on two fronts, with collections dipping due to the covid-19 lockdown, and the three-month moratorium extended to their borrowers

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

Lockdown, moratorium are microfinance institutions' biggest fears

Despite an assuring outlook, large brokerages - whether Kotak Institutional Equities, Axis Capital, Ambit Capital or Credit Suisse - say the MFI sector may be in for a rough ride

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

MFI operations come to halt in lockdown districts; biz severely impacted

Estimates suggest the locked down districts account for close to 50% of microfinance business in India; banks and SFBs could also be impacted

Microfinance institutions pain on the rise: Explained in four charts

The portfolio-at-risk (PAR) in the 1-30 due-past-date (DPD) period rose by 60 basis points (bps) to 1.9 per cent over the previous quarter

NBFC-MFIs show moderation in leverage for three consecutive quarters

During the December quarter (Q3FY20), NBFC-MFIs received a total of Rs 10,960 crore in debt funding, up 16 per cent from Q2FY20