Indian microlender Equitas Microfinance recently announced it successfully raised RUP 500 million (USD 12.5 million) in additional capital from existing investors Bellwether Microfinance Fund, MVA Ventures (a holding of MicroVentures SPA) and Indian Financial Fund.
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MICROCAPITAL STORY: Bahraini Government to Seek Technical Assistance from Indian Microfinance Practitioners in Developing Microfinance Programs
The government of Bahrain plans to seek technical assistance from India’s microfinance sector in establishing future government-sponsored microfinance programs. Minster of Social Development Fatima Al Balooshi will lead a delegation to India next week to discuss technical assistance prospects with officials at various government and private institutions involved in India’s microfinance development. Institutions on the delegation’s itinerary include India’s NABARD (National Bank of Agricultural and Rural Development), an unnamed microfinance research institution, as well as various NGOs associated with microenterprise development.
MICROCAPITAL STORY: Lok Capital and the Dell Foundation Announce Investment in Indian Microfinance Organization Arohan
Lok Capital, a microfinance venture capital fund focused on India, and the Dell Foundation, a charitable organization, have announced an investment in Arohan Financial Services Limited, a for-profit Indian microfinance institution (MFI). The size of the equity investment was not disclosed. Arohan offers microcredit and credit-linked insurance to urban women in Kolkata, and it plans to use the funds to expand operations to other urban centers in eastern India and to expand its product offering.
NEWS WIRE: India: Microfinance Institutions Under Pressure to Raise Funds
Source: Business Standard.
MICROCAPITAL STORY: Change in Indian Capital Adequacy Standards Affect Microfinance Institutions
The Reserve Bank of India (RBI) recently tightened capital adequacy standards governing microfinance institutions (MFIs) in India, and several local MFIs worry the change may lead to the need to raise additional capital and increase interest rates.
MICROCAPITAL STORY: Indian Microfinance Institutions (MFIs) Increase Focus on Urban Areas
A recent article in the Business Standard reported an increase of urban microfinance in India. The piece pointed to facts from a study conducted by Sa-Dahn, an Indian NGO that serves as a trade association for MFIs. According to the study, recent experiences in urban microfinance show that success is possible despite higher start-up costs necessitating larger loans.
MICROCAPITAL STORY: Indian Government Agency NABARD (National Bank of Rural Development) Sponsors Trip by Indian Banking Representatives to Observe Microfinance in Sri Lanka
India’s NABARD (National Bank of Rural Development) plans to take a group of 20 individuals that represent India’s largest financial institutions to Sri Lanka to observe microfinance methods employed by the country’s financial institutions. The trip will be hosted by NABARD’s Regional Training College, with the purpose of acquainting Indian bankers with the microfinance concept. Individuals were chosen from a wide range of India’s financial institutions, including commercial banks, regional rural banks, cooperative banks and NABARD itself. Names of specific financial institutions represented were not available. In addition to NABARD’s support, the trip was facilitated by Sri Lankan microfinance institution Sanasa Development Bank.
MICROCAPITAL STORY: Indian Information Technology Firm Gradatim Launches Microinsurance Technology Platform
India-based information technology firm Gradatim IT Ventures recently announced the launch of “MF-Insure”, a new technology platform designed to consolidate and simplify various business operations of microinsurance providers. Details on MF-Insure’s design features are not yet available. However, a platform that appears to be a predecessor is described on the company’s website as a product that streamlines business processes in the areas of Billing and Collection, Insurance Policy Servicing, and Claims.
NEWS WIRE: United Kingdom & India: Reserve Bank of India Tells Banks to Halt Mobile Payments
Source: Finextra.
MICROCAPITAL STORY: ICICI Foundation, IFMR Trust and CRISIL to Develop Rating Standards for Microfinance Institutions (MFIs) in India
The ICICI Foundation, IFMR Trust, and CRISIL have entered into a deal to rate microfinance Institutions (MFIs). The organizations believe that rating evaluations will help MFIs develop into viable commercial entities with increased access to mainstream financial investors. In the agreement, CRISIL will rate the institutions and develop rating criteria to be used by others, IFMR will provide access to enterprises working in microfinance and the ICICI Foundation will assist in the dissemination of new ratings criteria.
MICROCAPITAL STORY: Consolidation of Indian Microfinance Institutions Expected
Experts following the growth of microfinance in India say that the sector is headed toward a phase of consolidation, and expect to witness a series of mergers and acquisitions. Originally reported by The Wall Street Journal’s Livemint, it is expected that consolidation will occur amongst smaller MFIs in order to compete with India’s microlending giants. Currently, the top 25 microlenders in the space account for 75 percent of total microlending, creating a strong imperative for small MFIs to join forces. It is expected that MFIs serving less than 5000 clients will need to engage in consolidation.
MICROCAPITAL STORY: Microfinance Institutions SKS, Ujjivan and Bandhan Report Growth as Indian Inflation Rises to All Time Highs
As first reported in an Economic Times article on inflation and microfinance in India, a number of Indian microfinance institutions appear on track to experience growth of over 100% in 2008, even as the rest of the Indian economy suffers from rising inflation. Analysts predict that Indian inflation will remain in the double-digits until at least December and current rates are at a 13-year high. India’s current inflation (11.05% as of June 2008) has been caused mainly by the continued rise in oil prices coupled with the weakening rupee. Cost of imports has become more expensive and the government is expected to continue to raise fuel prices.
MICROCAPITAL STORY: Indian Banking Giant HDFC (Housing Development Finance Corporation) to Expand Microfinance Arm with 8 New Branch Offices
Indian bank HDFC (Housing Development Finance Corporation) has announced plans to open eight additional branches solely dedicated to microfinance before December 2008. The expansion would increase its microfinance branch offices from four to twelve. HDFC first ventured into microfinance in February 2007 with the launch of its microfinance branch, as reported by MicroCapital. When designing its microfinance services, the bank modeled lending after India’s self-help group linkage model. Its microfinance product suite includes savings, credit, insurance, and remittances.
MICROCAPITAL STORY: Indian Village Council Issues Gram Sabha Credit Cards (GSCCs) for Microfinance Loans
In the rural Indian village of Jaltara, the village council is extending microfinance loans to villagers by issuing Gram Sabha (village council) Credit Cards (GSCCs). As part of the government-sponsored Madhya Pradesh Rural Livelihoods Project, the council issues the GSCCs, which serve as loans from the village treasury, instead of distributing money. The size of each loan, which must be repaid in six months, and the repayment schedule are decided in the council meetings.
NEWS WIRE: India: SKS Microfinance, Career Launcher to Open Primary Schools
Source: Business Standard.
NEWS WIRE: India: Microfinance Raises Fresh Sub-prime Fears
Source: Times Online.
MICROCAPITAL STORY: Intellecap Announces In-House Partnership between its India Development Gateway (IDG) and its Srijan Microfinance Business Plan Competition to Facilitate Business Development Services for Srijan Participants
Intellecap recently partnered its incubation, the India Development Gateway (IDG) with its annual Srijan Microfinance Business Plan Competition, a competition aimed at developing solutions to microfinance institution’s (MFI’s) resource and infrastructure problems. Srijan 2008 winners were announced last week. While Srijan awarded top competitors with the cash equivalent of USD 30,335, intermixing IDG into the competition aims to provide extended support by linking the entrepreneurs with the IDG portal to hopefully further the process of making their plans into small and medium-sized businesses. Additionally, the in-house partnership is hoped to encourage new sources of capital.
MICROFINANCE EVENT: The International Institute of Islamic Business and Finance (IIIBF), the Islamic Business and Finance Network (IBF Net) and the Institute of Microfinance and Development (IMAD) Host the International Training Programs and Workshops in Islamic Finance in New Delhi India
INTERNATIONAL TRAINING PROGRAMS AND WORKSHOPS IN ISLAMIC FINANCE
OCTOBER 11-12, 2008, INDIA ISLAMIC CULTURE CENTER IN NEW DELHI, INDIA
The last in a three part series, this workshop will provide an introduction to Islamic finance on the first day and a workshop on Islamic microfinance on the second day. The workshop will explore different models for Islamic microfinance discussing both the nonprofit and for-profit sector. Additionally, examples from practical country experiences will be presented. Discussion will be initiated on the future of the Islamic microfinance sector in India.