Microfinance institutions (MFIs) in Andhra Pradesh, India, have started talks to recover outstanding loans amounting to INR 7,000 crore (approximately USD 1.4 billion), which they have been unable to collect since the repayment dropoff in the state started in 2010.
Search Results for: "SKS Microfinance"
MICROCAPITAL BRIEF: Microcredit Summit Campaign: 45m Indians Move Out of Poverty, Earning Over $1.25 Per Day Because of Microfinance
The Microcredit Summit Campaign, a program of the US-based advocacy group RESULTS Educational Fund, recently released a report indicating that nearly 9 million Indian households involved in microfinance began earning more than USD 1.25 per day between 1990 and 2010.
MICROFINANCE PAPER WRAP-UP: Discovering Limits: Global Microfinance Valuation Survey 2011; By Frederic de Mariz, Xavier Reille, Daniel Rozas; Published by JP Morgan, CGAP (Consultative Group to Assist the Poor)
By Frederic de Mariz, Xavier Reille and Daniel Rozas; published by JP Morgan and CGAP (Consultative Group to Assist the Poor); July 2011; 29 pages; available at: http://www.microfinancegateway.org/p/site/m//template.rc/1.9.52137
MICROCAPITAL BRIEF: Commercial Banks, Private Equity Investors Reevaluate India’s Microfinance Sector in Light of Draft Microfinance Bill
Since the Indian government released a draft microfinance bill in July 2011, commercial banks and private equity investors reportedly have expressed a new willingness to consider investing in microfinance institutions (MFIs).
MICROCAPITAL BRIEF: Indian Microfinance Institution SKS Reports Quarterly Loss, Looks to Raise $200m Through Private Placements
SKS Microfinance, a publicly-listed Indian microfinance institution (MFI), recently reported a net loss of INR 2.18 billion (USD 48.1 million) for the quarter ending June 30, compared to a net profit of INR 669 million (USD 14.3 million) in the same period last year.
MICROCAPITAL BRIEF: Costs Rise for Indian Microfinance Institutions (MFIs) Looking to Securitize Loan Portfolios From 10% to Over 12%
Indian microfinance institutions (MFIs), which have struggled to procure loans from commercial banks since turmoil struck the microfinance industry in Andhra Pradesh in November 2010, have found that raising money by securitizing even their higher-quality loan portfolios has become more expensive.
MICROCAPITAL BRIEF: In Partnership with 15 Microfinance Institutions (MFIs), Dia Vikas Capital to Distribute Micro-Pension Scheme Initiated by India’s Pension Fund Regulatory and Development Authority (PFRDA)
In association with its 15 partner microfinance institutions (MFIs), Indian social venture firm Dia Vikas Capital, a subsidiary of nonprofit Opportunity International Australia, will distribute a micro-pension scheme that was initiated by the Pension Fund Regulatory and Development Authority (PFRDA) of the Indian government. The program, NPS-Lite, will encourage economically disadvantaged people to save money for when they are over age 60 [1]. The Indian government is reported to have committed to match NPS-Lite contributions up to INR 1,000 (USD 22) per client annually [1] [2].
MICROCAPITAL BRIEF: To Counter Liquidity Crunch in India, Grameen Koota, Bandhan, SKS Securitize Loans Disbursed to Women
Microfinance institutions (MFIs) in India are reportedly securitizing more of the loans they disburse to women in order to raise capital they would likely have borrowed from banks before the liquidity crunch that has affected the microfinance sector since late 2010.
MICROCAPITAL BRIEF: Mr Ganesh Sankaran of HDFC Bank Asks, “Can Microfinance Attain Industry Status?”
Mr Ganesh Sankaran, executive vice president of India’s HDFC Bank, argues in a recent article on the Hindu Business Line website that the microfinance industry has reached a bifurcation point wherein its stakeholders must navigate it towards achieving either commercial sustainability or poverty alleviation.
MICROCAPITAL BRIEF: Public-Sector Bank, Andhra Pradesh State Government May Launch Non-Banking Financial Company (NBFC) to Extend Microcredit to the Poor
An unnamed public-sector bank in India is reportedly looking to start a non-banking financial company (NBFC) that will disburse microloans to the poor, with the Indian central government, the government of the Indian state of Andhra Pradesh and the National Bank for Agriculture and Rural Development (NABARD) as equity investors.
MICROCAPITAL BRIEF: Indian Government Proposes Micro Financial Sector (Development and Regulation) Bill Include NBFCs, Andhra Pradesh Considers Non-Banking Financing Company (NBFC) Model to Balance Microfinance Institutions (MFI)
The Indian federal government has proposed changes to the Micro Financial Sector (Development and Regulation) bill to cover all types of microfinance institutions (MFIs), including non-banking finance companies (NBFCs) operating in the microfinance sector [2]. The Micro Financial Sector (Development and Regulation) bill, which was first passed in 2007, covers only MFIs not overseen by the Reserve Bank of India (RBI), India’s central bank [2]. RBI regulates banks and most NBFCs. This leaves NBFCs operating in the microfinance sector outside of the purview of both RBI and the Micro Financial Sector (Development and Regulation) bill [2].
MICROCAPITAL BRIEF: Indian Banks Collaborate on Restructuring Loans to Microfinance Institutions (MFIs), SKS Opts Out
Indian banks that have disbursed loans to microfinance institutions (MFIs) have reportedly prepared a blueprint for restructuring these loans. Under the proposal, Indian microfinance institutions (MFIs) would be given a maximum of ten years to repay loans to financial institutions at an interest rate of 12 percent. The loans that would be restructured under the proposal are estimated to total INR 130 billion (USD 2.8 billion) [1].
MICROCAPITAL BRIEF: Swarna Pragati Housing Microfinance Launches Micro-Mortgage Product in Maharashtra, India
Swarna Pragati Housing Microfinance Limited, an Indian housing finance institution, has launched a housing microfinance product in the central-Indian state of Maharashtra. Swarna Pragati plans to disburse INR 30 million (USD 652,000) in loans to 100 self-help groups (SHGs) in an effort to reach 500 beneficiaries, particularly poor women in underserved rural areas [1]. Swarna Pragati aims to use existing networks of SHGs and other local organizations to identify clients and service the loans [1].
MICROCAPITAL BRIEF: Centre for Micro Finance of Institute for Financial and Management Research (IFMR) and College for Agricultural Banking of Reserve Bank of India (RBI) Publish Joint Study on Remittance Channels
The Centre for Micro Finance at the Institute for Financial and Management Research (IFMR), a think-tank established in India, and the Reserve Bank of India’s College for Agricultural Banking, a training college for the central bank of India, recently published a report on the trends in domestic money transfers by Indian migrant workers.
MICROCAPITAL BRIEF: Microcredit Summit Campaign Releases State of the Microcredit Summit Campaign Report 2011, Reports 128m Poor People Received Microfinance Loans in 2009
The Microcredit Summit Campaign, a project that was launched in 1997 by US-based nonprofit advocacy group RESULTS Educational Fund (REF), recently released the State of the Microcredit Summit Campaign Report 2011, a plenary account of the recent trends, challenges and achievements in the microfinance industry, at the National Press Club in Washington, DC. The report indicated that 128 million poor people received microloans in 2009, more than was recorded in any of the organization’s previous reports. In 1997, 7.6 million were estimated to have received microloans.
MICROCAPITAL BRIEF: Vijay Mahajan of Indian Microfinance Institution (MFI) BASIX Undertakes 75-Day Journey Across 12 Indian States to Gain Feedback From Poor People
Vijay Mahajan, chairman of Indian for-profit microfinance institution (MFI) BASIX, began a 75-day journey in January 2011 on foot, public transport and car across 12 Indian states to obtain direct feedback from poor people on the effect of microfinance on their lives. Mr Mahajan began his journey amidst criticism that BASIX charges unreasonably high interest rates.
MICROCAPITAL BRIEF: India’s SHARE Microfin Head Exceeds Limit Set by Companies Act With Salary of $1.6m
Udaia Kumar, the managing director of SHARE Microfin Limited, a non-banking financial institution in India, was reportedly paid a salary of INR 74 million (USD 1.6 million) for the fiscal year ending March 2010. The salary exceeds the limit stipulated by the Companies Act, a law which regulates the operations of firms in India. The act states that a company is not allowed to pay more than 5 percent of its net profit to a director without government permission. A significant portion of Mr Kumar’s salary comprises “sweat equity”, which are shares issued at zero cost to the recipient [1]. The 2008-2009 salary of Mr Kumar of INR 81 million (USD 1.7 million) also exceeded the limit set by the Companies Act, but Share Microfin obtained approval from the Ministry of Corporate Affairs for the surplus pay.
MICROCAPITAL BRIEF: Retail Microfinance Institution (MFI) Loans Taking Two Months to Process in Andhra Pradesh, India
Since the state government of Andhra Pradesh implemented a law in October 2010 that requires microfinance institutions (MFIs) to get approval from district officials before disbursing loans, it now reportedly takes approximately two months to process loans.