by Witt Gatchell -

MICROCAPITAL BRIEF: SKS Microfinance of India Under Investigation by Insurance Regulatory and Development Authority (IRDA) for Violating Norms in Insurance Practices

India’s Insurance Regulatory and Development Authority (IRDA) is reported to be investigating SKS Microfinance, a publicly traded microfinance institution (MFI) based in India, for violating norms in its insurance practices.

by John Howard-Smith -

MICROCAPITAL BRIEF: Exposure to Microfinance Sector Threatens Banks’ Stocks in India

Recent analyses by Citigroup, a US-based international financial services conglomerate, indicate that banks in India are experiencing stress on their stock prices due to the falling asset quality of their microfinance institution (MFI) holdings, mainly due to the recent trouble in microfinance in the state of Andhra Pradesh.

by John Howard-Smith -

MICROCAPITAL BRIEF: Grameen Foundation Launches Upgraded Mifos Cloud Service For Microfinance Institutions (MFIs) in India

Grameen Foundation, a US-based nonprofit, announced at the recent Microfinance Leadership Summit on Technology in Manila, Philippines, that it has launched a hosted version of its Mifos management information system, Mifos Cloud, that is available for a fee to microfinance institutions (MFIs) in India. Unlike Mifos Cloud, which runs off-site, a version of the service has been available for free to MFIs around the world to run on their own hardware since 2006.

by Witt Gatchell -

MICROCAPITAL BRIEF: State-Owned Union Bank to Offer Microcredit in Indian State of Andhra Pradesh

The Union Bank of India (UBI), a state-owned bank based in Mumbai, has launched a new microfinance scheme to support self-help groups (SHGs), village-based financial intermediaries comprised of groups of 10 to 20 women, in Andhra Pradesh.

by Trevor Kwong -

MICROCAPITAL BRIEF: Indian State of Karnataka to Start State-run Microfinance Institution

The government of Karnataka, a state in India, recently announced plans to start a state-run microfinance institution (MFI) with an investment of INR 5 billion (approximately USD 110 million), reportedly making it the second state in India to run an MFI, the other being Andhra Pradesh.

by Witt Gatchell -

MICROCAPITAL EVENT: YourStory.in Hosts Sociopreneurship India 2010, Bangalore, India, November 23, 2010, Presenters to Include Dr Thiagarajan, Chair of Madura Micro Finance

Event Name: Sociopreneurship India 2010

Event Date: November 23, 2010

Event Location: Royal Orchid Hotel, Bangalore, India

by Trevor Kwong -

MICROCAPITAL BRIEF: Indian Investor in Microfinance, IFMR Capital, Receives “LA-” Rating from Rating Agency ICRA

ICRA, an Indian rating agency, recently awarded, an “LA-” rating to the long-term bonds program of Indian investment company IFMR Capital, which finances institutions in sectors such as rural and urban financial services.

by Diana Baide -

MICROCAPITAL BRIEF: Under Pressure from State Government of Andhra Pradesh, Indian Microfinance Institutions Agree to Cap Interest Rates at 24%

Several major microfinance institutions (MFIs) in the Indian state of Andhra Pradesh have agreed to cap interest rates at 24 percent per year after a series of politically-triggered freezes on bank lending to MFIs that followed an uproar regarding debt collector harassment that was linked to a number borrower suicides.

by Diana Baide -

MICROCAPITAL BRIEF: India’s Microfinance Industry on Brink of “Collapse” Due to Credit Freeze in State of Andhra Pradesh

India’s microfinance industry is reportedly on the verge of “collapsing,” according to the UK’s Financial Times newspaper, due to politically-triggered bank freezes on credit in the state of Andhra Pradesh, where outstanding loans reportedly measure USD 2.7 billion distributed to 6.7 million borrowers.

by John Howard-Smith -

MICROCAPITAL BRIEF: Indian Mobile Commerce Provider Comviva, Bangladeshi Cellular Service Provider Bangalink Partner to Launch mWallet Service for Microfinance and Other Customers in Emerging Markets

Comviva, a mobile commerce provider based in India, and Bangalink, a cellular service provider based in Bangladesh, have partnered to offer unbanked citizens of Bangladesh an “mWallet” service for managing their finances using mobile phones.

by John Howard-Smith -

MICROCAPITAL BRIEF: Payment Strike Hits India’s Andhra Pradesh State As Local Governments Urge Microfinance Borrowers Not to Repay

In India’s Andhra Pradesh state, local government officials are reportedly telling microfinance borrowers to stop repaying lenders even if they have the money to do so. The state government there has begun to increase restrictions on interest rates and arrest thuggish lending agents for fear that high rates and harassment from lenders has contributed to an overwhelming debt burden on microborrowers and suicides in the region.

by Witt Gatchell -

MICROCAPITAL BRIEF: Five Indian Microfinance Institutions (MFIs) Agree to Cut Interest Rates to 24%

The CEOs of Indian microfinance institutions (MFIs) SKS Microfinance, BASIX, Spandana, Share Microfin and Asmitha Microfin have agreed to reduce interest rates charged to borrowers to 24 percent on an annual basis. The announcement came after a meeting with financial services secretary, Mr R Gopalan.

by John Howard-Smith -

MICROCAPITAL BRIEF: Micro Housing Finance Corporation (MHFC), Tata Housing Partner to Launch Shubh Griha Housing Project For Lower Income Families Including Microfinance Clients near Mumbai, India

Micro Housing Finance Corporation (MHFC), an India-based housing company that provides home loans to lower income families, has partnered with Tata Housing, an Indian real estate developer, to launch the Shubh Griha housing project near Mumbai, India. Housing units are usually awarded to the general population through a lottery process, but Tata Housing will reserve 208 housing units out of 1200 total units for families that require financial assistance.