CRISIL, a credit rating agency based in India, has upgraded the long-term loan rating of Asmitha Microfin Limited, a microfinance institution (MFI) based in India [1,2,3].The rating moved from a “BBB-” with a “stable” outlook, to a “BBB” with a “stable” outlook [1]. Increased capitalization is cited as a reason for the upgrade, as Asmitha increased its absolute net worth by INR 740 million (USD 15.9 billion) from March 31, 2009 to October 31, 2009, reaching a total of INR 1.6 billion (USD 34.3 million) [4]. MicroCapital reported on one deal that increased Asmitha’s capitalization, an equity investment worth INR 500 million (USD 10.2 million) from BlueOrchard, a commercial microfinance investment intermediary based in Switzerland in October of 2009 [5].
By Christopher Maggio, Research Assistant
About:
CRISIL
Description:
CRISIL is a credit rating agency based in Bangalore, India, that operates internationally. It provides ratings for various microfinance institutions (MFIs), including approximately 30 that report to the MIX Market, the microfinance information clearinghouse. Some of these MFIs include Bandhan, BASIX, Cashpor Microcredit, Equitas, and Spandana. In October of 2009, CRISIL published a list entitled “Top 50 Microfinance Institutions in India.”
Microfinance Information Exchange (MIX) Profile:
http://www.mixmarket.org/service-providers/crisil
Organization’s Website:
http://www.crisil.com/
Contact Information:
Head Office
‘CRISIL House’,
121/122, Andheri Kurla Road
Andheri (East)
Mumbai – 400 093, India
Phone : +91 22 6691 3001 09
Fax : +91 22 6691 3000
Email: info@crisil.com, RamyaKA@crisil.com
Additional Resources:
Crisil’s “Top 50 Microfinance Institutions in India”: http://www.scribd.com/doc/20998565/Top-50-Microfinance-Institutions-in-India-by-CRISIL
MicroCapital’s Microfinance Universe profile: CRISIL
About:
Asmitha Microfin Limited
Description:
Asmitha Microfin Limited is a microfinance institution (MFI) based in Hyderabad, India. It offers collateral-free group and individual loans to women. It was founded in 2002 and operates primarily in rural areas. It is registered as a “Public Limited Company.” In October of 2008, MicroCapital reported the purchase of a minority stake in Asmitha on the part of BlueOrchard Private Equity, the private equity arm of BlueOrchard Microfinance Investment Managers.
Microfinance Information Exchange (MIX) Profile:
http://www.mixmarket.org/mfi/aml
Organization’s Website:
http://www.asmithamicrofin.com/home.html
Just the Facts:
– Country of Incorporation: India
– Year Founded: 2002
– Legal Status: Public Limited Company
– Total Assets: USD 170 million (as of 31/March/09)
– Gross Loan Portfolio: USD 140.3 million (as of 31/March/09)
– Number of Active Borrowers: 890,832 (as of 31/March/09)
– Return on Assets: 5.33% (as of 31/March/09)
– Return on Equity: 55.52% (as of 31/March/09)
– Area of Operation: India
– Main Funding Sources: Loans, Shareholder Capital
– Products: Loans
– Participant(s)/Backer(s)/Investor(s): BlueOrchard Private Equity
– Chairperson and Managing Director: Dr. Vidya Sravanthi
Contact Information:
Registered Office: 1-2-58, Plot No.1-3, N Block, Kakatiya Nagar, Habsiguda
Hyderabad-500007, A.P., INDIA. Phone: +91 40 27157865, 27174369
Additional Resources:
MICROCAPITAL.ORG STORY: BlueOrchard Private Equity Fund Invests Rs 500 million ($10.2 million) in Asmitha Microfin
MICROCAPITAL STORY: BlueOrchard Microfinance Invests $5.3m and Purchases Equity Stake in Indian Microfinance Institution Asmitha Microfin Limited
MicroCapital’s Microfinance Universe profile: Asmitha
Bibliography:
[1] Apria article entitled ‘Crisil Assigns BBB to Asmitha Microfin’s NCDs’: http://www.apria.com/common/aw_cmp_printNews/1,2762,1048618,00.html
[2] CRISIL: http://www.crisil.com/
[3] Asmitha Microfin Limited: http://www.asmithamicrofin.com/
[4] Microfinance Focus article entitled ‘CRISIL upgrades rating on long-term bank loan facility of Asmitha Microfin’: http://www.microfinancefocus.com/news/2009/12/29/crisil-upgrades-rating-on-long-term-bank-loan-facility-of-asmitha-microfin/
[5] MICROCAPITAL.ORG STORY: India-based Credit Rating Agency Crisil Observes That Percentage Of Bad Loans In Indian Microfinance Institutions May Triple As Microborrowers Feel The Impact Of The Global Economic Crisis: https://www.microcapital.org/microcapitalorg-story-india-based-credit-rating-agency-crisil-observes-that-percentage-of-bad-loans-in-indian-microfinance-institutions-may-triple-as-microborrowers-feel-the-impact-of-the-global-eco/
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