Spandana Sphoorty Financial Limited, a microfinance institution (MFI) in India backed by Mumbai-based Kedaara Capital, held a three-day initial public offering (IPO) this month. It met its goal of raising INR 12 billion (USD 167 million) to augment its capital base and fund general operations.
Spandana shares debuted at INR 825 (USD 11.44) per share, a discount to their issue price of INR 856 (USD 11.94). At the end of the bidding, the IPO was subscribed by
The UN Capital Development Fund (UNCDF), a US-based agency of the UN that focuses on financial inclusion and other forms of “sustainable development,” recently expanded the i3 program to China. The program, which already was operating in Bangladesh, Malaysia and Vietnam,
This is a summary of a paper by Preethi Rao, Suraj Nair and Shruti Korada; published by Leveraging Evidence for Access and Development (LEAD), a unit of the Institute for Financial Management and Research (IFMR); April 2018, 46 pages, available at:
http://ifmrlead.org/wp-content/uploads/2018/08/IFMR-LEAD-Demonetization-Study-Final-Report.pdf
This study reviews the short- and long-term impacts on low-income households resulting from the demonetization of Indian currency in 2016. The authors collected data
The Microfinance Institutions Network (MFIN), a self-regulating body representing 48 microfinance institutions (MFIs) in India, reports that 2.83 percent of non-group microloans in the country have at least one payment overdue by more than 180 days as of March 2018,
Larsen and Toubro (L&T) Finance Limited, a subsidiary of India-based L&T Finance Holdings that lends to women, recently debuted an app that is intended to “enable seamless customer on-boarding by providing instant loan sanctioning.”
Arohan Financial Services, an Indian non-banking finance company that offers microloans to women, recently raised INR 155 crore (USD 24.1 million) from Maj Invest, a Danish asset management firm; Tano Capital, a US-based asset management firm focusing on emerging markets; Aavishkaar Venture Management Services, a venture capital firm targeting underserved regions of India; and multiple individuals.
US-based Route One Fund I LP recently spent approximately INR 990 million (USD 15.4 million) to purchase 0.88 percent of the shares of Bharat Financial Inclusion, a for-profit non-banking microfinance institution (MFI) in India, via an open market transaction.
Creation Investments Capital Management, a US-based alternative investment company, recently announced that it has placed an equity investment of USD 20 million in Muthoot Microfin Limited, a unit of Indian conglomerate Muthoot Pappachan Group. Muthoot Microfin
At
the 2016 Mekong Financial Inclusion Forum, Ms. Claire Van der Vaeren, UN Resident Coordinator and UNDP Resident Representative, Cambodia, said that financial inclusion is a vital enabler that can help unlock the potential of the poor and underserved, enhance women’s economic empowerment and catalyse a range of national development objectives. Its importance is shown in references to six of the seventeen UN sustainable development goals.
Ms. Van der Vaeren also was impressed by level of private and public engagement in
A diverse set of panelists at this session of the Mekong Financial Inclusion Forum agreed that providing financial education can be expensive and yet often fails to produce measurable outcomes. Jayshree Venkatesan, a financial inclusion consultant, stated that “results from financial literacy campaigns are at best mixed.” Shane Nichols, Program Director for Good Return, said that the rise of randomized controlled trials has helped his organization discover that although “we used to do pre- and post-tests showing people gained knowledge…sustained behavior-change was virtually non-existent.”
Ms. Venkatesan explained that “there are a number of things that limit these efforts. They cost a lot of money. Most of these tend to be
Arman Financial Services Limited, a non-banking finance company based in the Indian state of Gujarat, recently announced it is reducing interest rates on its two-wheel vehicle and microfinance loans.
RBL Bank Limited, an institution formerly known as Ratnakar Bank Limited (RBL) that is headquartered in the Indian state of Maharashtra, recently announced its plan to buy a 9.99-percent stake in Utkarsh Micro Finance, a non-banking financial institution based in the Indian state of Uttar Pradesh.
Equitas Small Finance Bank Limited, a subsidiary of India’s Equitas Holdings Limited, recently began operations with three branches in Chennai, offering deposit accounts with interest rates of six to 7.5 percent per year.
MicroSave, a for-profit consulting company based in India, recently launched ePaathshala, an educational program for both staff and clients of financial institutions.
The Jharkhand State Livelihood Promotion Society (JSLPS), a program of the local government’s Rural Development Department, and MicroSave, a financial inclusion consulting firm headquartered in the northern Indian state of Uttar Pradesh, recently launched a financial education pilot program in the Bero, Khuntipani and Manoharpur blocks of the eastern Indian state of Jharkhand.
Symbiotics Group, a Switzerland-based for-profit investment intermediary, recently informed MicroCapital that it has issued local-currency bonds
Equitas Holdings Limited, an Indian microfinance lender, recently opened its primary market sale.
Symbiotics, a Switzerland-based investment company that focuses on emerging markets, recently informed MicroCapital that it has completed bond transactions with a total value of USD 22 million.