Basix Group, an Indian provider of microfinance and other services to poor people since 1996, is reportedly looking to establish a footprint in Africa in order to increase earnings and diversify risk. Basix Group aims to increase fee-based revenue, as opposed to revenue such as interest rate spreads, from current levels of 40 percent to 70 percent by acquiring minority stakes in development credit institutions in 10 African countries.
After Indian microfinance regulation was tightened in late 2010, Basix recorded losses of 2 million customers and INR 600 crore (USD 114 million). Basix founder and chairman Vijay Mahajan reportedly has said Basix Group must secure INR 100 crore (USD 19 million) in equity within the next couple of months to assure that its debt restructuring proposal is approved. Basix intends to acquire no more than 26 percent of any one African bank.
As of December 2011, Basix Group reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 159 million, a gross loan portfolio of USD 155 million, approximately 1.19 million active borrowers and operations in 16 Indian states and 6 other countries. The group’s microfinance activities are carried out by two microfinance institutions (MFIs): Bhartiya Samruddhi Finance Limited (BSFL), a non-banking finance company (NBFC), and Krishna Bhima Samruddhi Local Area Bank Limited (KBSLAB), a rural bank.
By Amira Berrada, Research Associate
About Basix Group: Founded in 1996, Basix Group is an Indian entity whose member institutions provide poor people with products including microfinance, mobile payments, health insurance and agricultural and business development services. Basix Group operates through a holding company, Bhartiya Samruddhi Investments and Consulting Services Limited (BASICS). The group’s microfinance activities are carried out by two microfinance institutions (MFIs): Bhartiya Samruddhi Finance Limited (BSFL), a non-banking finance company (NBFC), and Krishna Bhima Samruddhi Local Area Bank Limited (KBSLAB), a rural bank. Basix Group also promotes Basix Academy for Building Lifelong Employability Limited, Basix Consulting and Training Services Limited, Basix Krishi Samruddhi Limited, Basix Sub-K iTransactions Limited and Ctran Consulting Limited. As of December 2011, Basix Group reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 159 million, a gross loan portfolio of USD 155 million, approximately 1.19 million active borrowers and operations in 16 Indian states and 6 other countries. As of March 2011, Basix Group reports return on assets of 0.66 percent and return on equity of 4.73 percent.
Sources and Additional Resources:
[1] The Economic Times, “Basix Group Looking to Expand Africa Footprint” http://articles.economictimes.indiatimes.com/2012-04-16/news/31349825_1_…
MicroCapital story, March 23, 2012, “MICROCAPITAL BRIEF: Banks Recast Loans of $136m for Indian Microfinance Institution Bhartiya Samruddhi (Basix)” https://www.microcapital.org/microcapital-brief-banks-recast-loans-of-136…
MicroCapital story, January 20, 2012, “MICROCAPITAL BRIEF: Michael and Susan Dell Foundation Takes Equity Stake in India Basix Sub-k Mobile Payments Platform” https://www.microcapital.org/michael-and-susan-dell-foundation-takes-equi…
MicroCapital Universe Profile for Basix Group: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BAS…
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