The Indian Government has announced plans to allocate INR 200 billion (USD 319 million) for a new bank to be known as The Micro Units Development and Refinance Agency Bank (MUDRA).
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MICROCAPITAL BRIEF: Bajaj Group, CDC, CX, Newquest Place $96m in India’s Ujjivan as Elevar, Lok, Sequoia, Wolfenson, Others Exit
Ujjivan, a microfinance lender primarily serving women in urban areas recently raised the equivalent of USD 48 million in a set of transactions that reportedly comprise the largest microfinance deal in India’s history.
MICROCAPITAL BRIEF: WestBridge, Sequoia, Nexus Place $30m in Equity in India Shelter Finance
WestBridge Capital, an investment company with offices in India, Mauritius and the US, is making its first investment in the India Shelter Finance Corporation, which was formerly known as Satyaprakash Housing Finance India Limited.
MICROCAPITAL BRIEF: Wells Fargo, Overseas Private Investment Corporation (OPIC) Plan $220m Loan to India’s Yes Bank for Micro-, Small, Medium-Sized Enterprises (MSMEs)
US-based Wells Fargo Bank and the US government’s Overseas Private Investment Corporation (OPIC) have agreed to “explore” extending up to USD 220 million in credit to Yes Bank, and Indian commercial bank, for on-lending to micro-, small and medium-sized enterprises (MSMEs).
MICROCAPITAL BRIEF: Triodos Fair Share, Triodos Microfinance Funds to Invest Debt, Equity in India’s Janalakshmi, Kazakhstan’s KazMicroFinance, Kyrgyzstan’s Kompanion
Two microfinance investment vehicles managed by a unit of the Netherlands’ Triodos Bank, the Triodos Fair Share Fund (TFSF), and the Triodos Microfinance Fund (TMF), have agreed to invest jointly in the following organizations: (1) Janalakshmi Financial Services (JFS), a Bangalore-based microfinance institution (MFI) that will borrow USD 11.4 million to expand its financing of small and medium-sized enterprises (SME) in India; (2) KazMicroFinance (KMF), which is reportedly the largest MFI in Kazakhstan and will sell the Triodos funds stakes totaling 13.7 percent of the organization’s shares; and (3) Kompanion Financial Group, an MFI in Kyrgyzstan that will sell the funds stakes totaling 17.5 percent of the organization’s shares as it seeks to transform from a community development financial institution into a microfinance bank [1] [2] [3]. Kompanion also sold a 17.5-percent stake to Dutch public-private development bank FMO; Mercy Corps, the founder of Kompanion, is retaining 65-percent ownership of the institution. The prices paid for the equity stakes in KMF and Kompanion have not been released.
MICROCAPITAL BRIEF: Satin of India Borrows $10m over 8 years from WorldBusiness Capital, Facilitated by IFMR Capital
Satin Creditcare Network Limited, a microfinance institution based in Delhi, India, recently borrowed INR 628 crore (USD 10 million) from WorldBusiness Capital (WBC), a US-based lender to small and medium-sized enterprises (SMEs).
MICROCAPITAL BRIEF: Vikram Akula Buys 26% Stake in India’s Vaya Finserv
Vikram Akula, the founder and former chairman of Indian group-lender SKS Microfinance, recently bought 26-percent stake in the start-up Vaya Finserv. Launched in 2014, Vaya Finserv has plans to acquire a “small finance bank” license, which will it will use to provide credit to individuals in India who have been rejected by traditional banks, primarily women’s self-help groups.
MICROCAPITAL BRIEF: IFC Raises Stake in Indian Microlender Bandhan Financial Services with $94m Equity Investment
The International Finance Corporation (IFC), a member of the US-based World Bank Group that offers financial services to businesses and governments in developing countries with the aim of increasing economic growth, recently raised its stake in Bandhan Financial Services, an India-based microfinance institution (MFI) that offers loans for health emergencies and microenterprise, with an investment of INR 5.8 billion (USD 94.4 million).
MICROCAPITAL BRIEF: India Completes Phase I of Jan-Dhan Initiative to Provide Banking Services to Every Household
Arun Jaitley, the Indian Finance Minister, reportedly announced that the government has completed Phase I of the Jan-Dhan initiative, a scheme created by Prime Minister Modi to give all Indians access to banking services, including credit, savings, insurance, direct benefits transfer and electronic payments.
MICROCAPITAL BRIEF: Triodos Investment Management Disburses Loans to Micro-, Small, Medium-sized Enterprise (MSME) Lenders in Cambodia, Colombia, India, Jordan, Uzbekistan
Triodos Investment Management, a subsidiary of Netherlands-based Triodos Bank, recently disbursed loans of undisclosed amounts to Annapurna Microfinance, an Indian microfinance institution (MFI); Asociacion Fondo de Desarrollo (FDL), an MFI in Nicaragua; Crezcamos, a Columbian MFI; Hamkorbank, a commercial bank in Uzbekistan; Intean Poalroath Rongroeurng (IPR), an MFI in Cambodia; Intellegrow, a nonbanking financial company (NBFC) serving small and medium-sized enterprises (SMEs) in India; and Vitas Jordan, an Amman-based MFI [1].
MICROCAPITAL BRIEF: Manappuram of India Acquires 70% Stake in Asirvad Microfinance of India for $21m
Manappuram Finance, an India-based non-banking finance company, recently acquired 70 percent of the shares of Asirvad Microfinance, a microfinance company based in India that provides enterprise loans, for INR 136 crores (USD 21.4 million). Manappuram will acquire the shareholding via a combination of purchasing shares from existing shareholders and subscribing to new equity shares of Asirvad.
MICROCAPITAL BRIEF: Muthoot Finance, FIS to Bring Automated Teller Machines (ATMs) to Rural India
Muthoot Finance, an Indian non-banking finance company (NBFC) that offers money transfers and loans using gold items as collateral, recently partnered with Fidelity National Information Services (FIS), a US-based banking and payment technology provider, to introduce Muthoot-branded automated teller machines (ATMs) in rural areas of India.
MICROCAPITAL BRIEF: Utkarsh Micro Finance, Advans SA Land $24m in Equity from CDC, Lok Capital, Aavishkaar Goodwell India, International Finance Corporation, Norwegian Microfinance Initiative
The Commonwealth Development Corporation (CDC), a development finance institution owned by the UK government, has announced that it has made an equity investment of USD 11 million in Utkarsh, a northern Indian microfinance institution (MFI) [1].
MICROFINANCE PUBLICATION ROUND-UP: Financial Liberalization and Rural Banking in India, Agricultural Financing and Food Security in Developing Countries, European Small Business Finance Outlook
“Financial Liberalization and Rural Banking in India;” published by the Indian Statistical Institute, Kolkata; 2014; 29 pages; available at http://www.networkideas.org/feathm/dec2004/Conference_Papers/Financial_Liberalisation_Rural_Banking_India_VKR.pdf
This paper examines the effects of the recent trend of financial liberalization in India, including its impact on banking policy and the structure of rural economies in the country.
MICROCAPITAL BRIEF: Asian Development Bank Loans $200m to Yes Bank of India to Fund Women’s Self-Help Groups, Small-Scale Farmers
The Asian Development Bank (ADB), a multilateral development finance institution based in the Philippines, has recently approved a loan of up to USD 200 million to Yes Bank Limited, an Indian commercial bank based in Mumbai.
MICROCAPITAL BRIEF: WestBridge Capital Invests $16m to Acquire 20% Equity Stake in India’s Aptus Value Housing Finance
WestBridge Capital, an investment company with offices in India, Mauritius and the United States, recently invested a total of INR 98 crore (USD 16 million) to acquire 20 percent of the shares of Aptus Value Housing Finance, an India-based company that seeks to provide affordable housing finance, primarily for middle-income, self-employed customers [1].
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Revises Regulations for Non-bank Financial Companies
The Reserve Bank of India (RBI), the country’s central banking authority, recently announced that it has revised its regulatory framework for non-bank financial companies (NBFCs).
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Enables “Small Finance Banks” in Effort to Promote Financial Inclusion
The Reserve Bank of India (RBI), the country’s central banking authority, recently issued guidelines for the licensing of “small finance banks,” which are intended to provide credit and savings services to small businesses, small-scale farmers and other entities in the “unorganized sector.”