SKS Microfinance Limited (SKS), an Indian microfinance institution (MFI), reportedly has obtained a loan of INR 1 billion (USD 20.1 million) from the government-backed Small Industries Development Bank of India (SIDBI), a loan wholesaler to MFIs in India.
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MICROCAPITAL BRIEF: 76 Criminal Cases Pending Over Alleged Role of Microlenders in Borrower Suicides in India’s Andhra Pradesh
In India’s Andhra Pradesh state, the government is pushing ahead with 76 criminal cases against employees of Indian microlenders, accusing them of pushing poor debt-ridden residents to suicide.
MICROCAPITAL BRIEF: Internal Documents Collected by Associated Press Implicate SKS Microfinance Staff in Borrower Suicides in Andhra Pradesh, India
Data collected by the Associated Press, a US-based news agency, reportedly implies that top officials of Indian microlender SKS Microfinance have had information implicating company employees in some of the approximately 200 suicides that were reported among poor and debt-ridden residents of the Andhra Pradesh region of India in late 2010.
MICROCAPITAL BRIEF: Microfinance Institutions in Andhra Pradesh Request Extension to Meet New Capital Adequacy Ratios Imposed by Reserve Bank of India
Microfinance institutions (MFIs) in the Indian State of Andhra Pradesh (AP) reportedly have requested that the Reserve Bank of India (RBI) extend the deadline for MFIs to meet its new capital adequacy ratio (CAR) requirements.
MICROCAPITAL BRIEF: MicroSave Survey: Reliance on Loan Sharks High, Microfinance Repayment Rates Low in Andhra Pradesh, India
The downturn in the microfinance industry in the Indian state of Andhra Pradesh has resulted in brisk business for traditional moneylenders according to a study entitled “What are Clients doing Post the Andhra Pradesh MFI Crisis?” from MicroSave, a microfinance advisory firm with offices in India, Indonesia, the Philippines and Uganda.
MICROCAPITAL BRIEF: Stymied by Local Regulation, Microfinance Institutions (MFIs) based in India’s Andhra Pradesh Expand Into Northern States
Following the enactment of the Regulation of Microlending Act in October 2010 by government of the Indian state of Andhra Pradesh (AP), which requires government approval of each microloan, microfinance institutions (MFIs) based in AP have began expanding into northern India.
MICROCAPITAL BRIEF: Government of Andhra Pradesh, India, Introduces Interest-Free Loans for Women in Self-Help Groups (SHGs)
On January 1, the government of the Indian state of Andhra Pradesh will introduce Vaddi Leni Runnam, a scheme that will provide women in self-help groups (SHGs) interest-free loans of up to INR 500,000 (USD 9,500) [1,2].
MICROFINANCE EVENT: Third National Seminar on Microfinance, Lucknow, Uttar Pradesh, India, December 2 – 3, 2011
Event Name: Third National Seminar on Microfinance – Issues and Challenges
Event Date: December 2 – December 3, 2011
Event Location: Lucknow, Uttar Pradesh, India
MICROCAPITAL BRIEF: Microfinance Institutions in India’s Andhra Pradesh State Seek Government, Commercial Bank Assistance in Restructuring Loans
The Microfinance Institutions Network (MFIN), an association of 39 Indian microlenders, has reportedly approached the government of the Indian state of Andhra Pradesh with a proposal to ease repayment terms for distressed borrowers in return for simplifying government-mandated underwriting procedures.
MICROCAPITAL BRIEF: Supreme Court of India Sends SKS Back to Andhra Pradesh High Court to Challenge Microfinance (Regulation of Moneylending) Act of 2010
SKS Microfinance, an Indian microfinance institution (MFI), recently was directed by the Supreme Court of India, the country’s apex court, to plead its case against the enforcement of the Regulation of Microlending Act of the Indian state of Andhra Pradesh (AP), in front of the AP High Court, the state’s apex court.
MICROCAPITAL BRIEF: Microfinance Institutions Move to Recover “Pre-Crisis” Loans Worth $1.4b in Andhra Pradesh, India
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.
MICROCAPITAL BRIEF: Government of Andhra Pradesh, India, Launches Cooperative Microfinance Bank for Self-Help Groups (SHGs)
Self-help groups (SHGs) in the Indian state of Andhra Pradesh will soon have an alternative source of microloans in the form of Stree Nidhi, a cooperative microfinance bank that has been formed by the state government and the Mandal Mahila Samkhyas (MMS), a representative federation of SHGs.
MICROCAPITAL BRIEF: Supreme Court Schedules Hearing on Petition Filed by SKS Microfinance Against Over Regulation of Moneylending Act of India’s State of Andhra Pradesh
SKS Microfinance, an Indian microfinance institution (MFI), has filed a petition with the Supreme Court of India seeking a stay to prevent the enforcement of the Regulation of Microlending Act issued by the government of the Indian state of Andhra Pradesh.
MICROCAPITAL BRIEF: Details Emerge on “Microfinance Bank” Proposed by Government of Andhra Pradesh, Government of India, Several Banks
The government of India, the government of the state of Andhra Pradesh and a consortium of five unnamed private and public banks have submitted an application to the Reserve Bank of India (RBI), the country’s central banking authority, to establish a “microfinance bank” as an alternative to microfinance institutions (MFIs) in the state of Andhra Pradesh [1].
MICROCAPITAL BRIEF: Confusion Continues Over Regulation of Microfinance Institutions (MFIs) in India, State of Andhra Pradesh May Adjust Law to Reconcile With Federal Rules
The Business Standard, an Indian financial newspaper, recently reported that the regulations recently issued for the microfinance sector by the Reserve Bank of India (RBI), India’s central banking authority, and the Regulation of Microlending act issued by the government of the state of Andhra Pradesh in 2010 are creating confusion over the regulatory jurisdiction of each entity.
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: Funding Shortage Continues in Indian State of Andhra Pradesh, Loans Overdue to SKS Microfinance Total $27m
London-based news agency Reuters recently reported that since the October 2010 passage of legislation by the state government of Andhra Pradesh in response to the turmoil in the microfinance sector there, funding still remains an issue for microlenders. This is despite efforts by India’s central bank, the Reserve Bank of India, to ease the liquidity crunch. According to Reuters, the issues of mission drift among for-profit players – putting short-term profits ahead of sustainability – and an uncertain regulatory outlook have contributed to the funding shortage [1]. Reuters also states that domestic lenders exercising extra caution when lending to Indian microfinance institutions (MFIs) further deter foreign investors [1].