The Sahulat Microfinance Society, an Indian social service organization, recently announced plans to establish 500 interest-free cooperative branches in India by the end of 2016.
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MICROCAPITAL BRIEF: Credit Rating and Information Services of India Ltd. (CRISIL) Rates Equitas Micro Finance Private Ltd ‘BBB/Stable’
The Credit Rating and Information Services of India Ltd. (CRISIL), an Indian agency, recently announced its ‘BBB/stable’ rating for Equitas Micro Finance Private Ltd., an Indian microfinance institution.
MICROCAPITAL BRIEF: Promoters of Indian Microfinance Institution (MFI), Bharatiya Samruddhi Finance Limited (BSFL), Buy Back Seven Percent Stake from ICICI Bank, International Finance Corporation (IFC) and Shorecap International Limited
Promoters of Bharatiya Samruddhi Finance Limited (BSFL), the microfinance arm of BASIX Group, have announced that they will buy back a seven percent stake in BSFL, or roughly INR 850 million (USD 18 million), from existing share holders. A report from TheHinduBusinessLine.com quoted Mr Sajeev Viswanathan, Chief Executive Officer at BSFL, as saying, “We are doing this as we wish to have control over the business and to continue our own source of capital.” The promoters stake of BASIX will go up from 23 percent to 30 percent. The stake would be bought from Indian public charitable trust, ICICI Foundation for Inclusive Growth; microfinance investment vehicle (MIV), International Finance Corporation (IFC); and US financial institution, Shorecap International Limited. ICICI will most likely exit from the company by selling its 2.8 percent stake, while the others may sell just part of their stakes.
MICROCAPITAL BRIEF: Swadhaar FinServe Private Limited to Receive $5.9m in Equity from ACCION International, Unitus Equity Fund, Michael and Susan Dell Foundation, MicroVest, an Indian Family Trust and Swadhaar’s Promoter Group
Swadhaar FinServe Private Limited, a Mumbai-based microfinance institution (MFI) with total assets of USD 2.1 million as of 2008, recently announced that it will receive INR 27.5 crore (equivalent to USD 5.9 million) in equity from several different investor organizations and private investors.
MICROCAPITAL BRIEF: Microfinance Institutions Network May Link Up with Unique Identification Authority of India
The Microfinance Institutions Network (MFIN), a trade association of Indian microfinance institutions, has announced its interest in registering with the Unique Identification Authority of India (UIDAI), India’s government organization established in 2009, for issuing identification numbers to Indian residents.
MICROCAPITAL BRIEF: World Bank Executes $407m in Loans for Microfinance Initiatives in India
Officials of the World Bank, a member of the World Bank Group, and the government of India recently signed two loan agreements totaling INR 19 billion (USD 407 million) for the development of microfinance initiatives in India, including a statistical information system in India.
MICROCAPITAL BRIEF: SKS Microfinance, a Microfinance Institution (MFI) in India, Announces Intentions to Sell Shares From July 28 to July 30
SKS Microfinance, a microfinance institution (MFI) that caters to women in India, plans to sell shares as part of a USD 250 million initial public offering (IPO) from July 28 to July 30. The price range at which the shares will be sold will be announced on July 26. The sale will be managed by Citigroup, a financial services firm based in New York City, USA; Credit Suisse, a financial services firm based in Zurich, Switzerland; and Kotak Mahindra, a financial services group in Mumbai, India [1].
MICROCAPITAL BRIEF: Vikram Akula, Founder of Indian Microfinance Institution SKS Microfinance, Speaks Out in Advance of This Month’s Initial Public Offering (IPO)
Vikram Akula, founder and chairperson of SKS Microfinance, an Indian microfinance institution (MFI), recently provided thoughts about the microlending industry in India pending SKS Microfinance’s upcoming initial public offering (IPO) amid criticism regarding SKS Microfinance’s interest rates and the debate over whether MFIs should operate on a nonprofit or for-profit basis.
MICROCAPITAL BRIEF: Indian Microfinance Institution SKS Microfinance Receives Initial Public Offering (IPO) Approval from Securities and Exchange Board of India
SKS Microfinance, an Indian microfinance institution, recently received approval from the Securities and Exchange Board of India for its planned initial public offering (IPO).
MICROCAPITAL BRIEF: State Bank of India (SBI) Creates Specialized Microfinance Branch in Dharavi, India
DaijiWorld, an online Indian news publication, recently reported that the nationalized commercial bank, State Bank of India (SBI), has set up a specialized microfinance branch in Dharavi, Mumbai. The branch will offer loans ranging between INR 10,000 (USD 110) and INR 50,000 (USD 554) to individuals at annual interest rates of eight to ten percent.
MICROCAPITAL BRIEF: KC Chakrabarty, Deputy Governor of Reserve Bank of India, Stresses Importance of Competition Among Microfinance Institutions (MFIs) to Increase Financial Inclusion
The Economic Times, an online business publication, recently interviewed KC Chakrabarty, Deputy Governor of the Reserve Bank of India (RBI), regarding how competition among microfinance institutions (MFIs) may help increase the financial inclusion of poor people.
MICROCAPITAL BRIEF: Reserve Bank of India Proposes Regulation for Securitizations by Microfinance Institutions
The Reserve Bank of India, India’s central banking authority, recently proposed new regulations for securitizations by non-bank finance institutions, which includes microfinance institutions (MFIs).
MICROCAPITAL BRIEF: India’s Insurance Regulatory and Development Authority Launches Consumer Protection Regulation
The Insurance Regulatory and Development Authority (IRDA), India’s insurance regulator, recently announced several draft insurance regulations, with the aim of reducing “unfair practices” and closing an “information gap,” according to A. Giridhar, executive director of IRDA.
MICROCAPITAL BRIEF: Axis Bank Extends Financial Services to Rural Areas in India
Axis Bank, a financial services firm based in Mumbai, India, plans to extend “affordable” banking services to 5,500 villages by March 2011 and an additional 6,500 villages by 2015. The bank has started the financial inclusion initiative in villages near Nashik in Maharastra and Darjeeling in West Bengal. According to SK Chakrabarti, the executive director of Axis Bank, the bank is also looking into several low-cost delivery models such as smart card, mobile banking and point of transaction device.
MICROCAPITAL BRIEF: Unitus to Discontinue Microfinance-Related Activities to Focus on Other Poverty Alleviation Strategies, Will Release 40 Staff Members in India, Kenya, United States
Unitus, an international nonprofit organization that provides funding and consulting services to microfinance institutions, has recently announced that it will be discontinuing its microfinance-related activities and will direct its remaining assets to “new early-stage, poverty-focused philanthropic activities” [1].
MICROCAPITAL BRIEF: Private Equity Interest in Indian Microfinance Industry is Prominent Topic at Capital Markets Conference in New Delhi Sponsored by ACCION International, Citi Foundation and EDA Rural Systems
Amid increasing demand for capital in India’s microfinance industry and growing interest of equity investors, concerns exist such as valuation bubbles and whether growth can be sustained were discussed at the recent “Microfinance Cracking the Capital Markets Conference & Investment Marketplace” held in New Delhi.
MICROCAPITAL BRIEF: Indian Microfinance Nonprofit Rang De Connects Social Investors with Lenders Online
Rang De, an Indian microfinance nonprofit organization, offers an online microlending platform to provide loans to poverty-level microentrepreneurs in India.
MICROCAPITAL BRIEF: Indian Microfinance Institution (MFI) Sanchetna Financial Services Receives $320,000 from Oikocredit’s Maanaveeya Holdings and Investments, Ananya Finance for Inclusive Growth and Trust MicroFin Network (TMN)
In its July 2010 newsletter, the Indian microfinance institution (MFI) Sanchetna Financial Services reported that it will be receiving a loan of INR 10 million (USD 211,000) from Maanaveeya Holdings and Investments, the Indian subsidiary of the Dutch cooperative investment fund Oikocredit. In addition, Sanchetna will receive INR 3 million (USD 64,000) from the microfinance investment vehicle (MIV), Ananya Finance for Inclusive Growth, and INR 2 million (USD 43,000) from the nonprofit trust, Trust MicroFin Network (TMN).