Anita Bhoir, a columnist of the Indian Express newspaper, recently published an article on the growing number of bankers that are joining microfinance institutions (MFIs) and non-banking finance companies (NBFCs), a broad term that includes some small microfinance cooperatives.
Ms Bhoir cited high remuneration and the rapid growth of the sector as primary factors behind the trend despite the Unitus-Hewitt Compensation And Benefits Survey released in June 2010 that indicated that senior microfinance managers earned one third to one half of what was earned in comparable positions in large financial institutions [2].
The article cites Bobby Parikh, managing partner of BMR & Associates, an accounting firm, as saying that “bankers see a clear growth path as some of these institutions are looking at listing and growing their business aggressively.” According to the article, mid-level executives with experience in branch banking are especially sought after.
As of 2009, the India microfinance sector has an aggregate loan portfolio of USD 3.7 billion, total assets of USD 4.6 billion, and 26.4 million active borrowers according to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
By Trevor Kwong, Research Assistant
Sources and Additional Resources:
[1] Source Article: Indian Express: Bankers make a beeline for top-paying NBFCs, MFIs:
http://www.indianexpress.com/news/bankers-make-a-beeline-for-toppaying-n
[2] MICROCAPITAL BRIEF: Second Annual Unitus-Hewitt Compensation And Benefits Survey of Indian Microfinance Institutions Demonstrates Salary Stability:
https://www.microcapital.org/microcapital-brief-second-annual-unitus-hewitt-compensation-and-benefits-survey-of-indian-microfinance-institutions-demonstrates-salary-stability/
[3] Microfinance Information Exchange (MIX): India:
http://www.mixmarket.org/mfi/country/India
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