Vikram Akula, chairman of SKS Microfinance, a for-profit microfinance institution (MFI) in India, has stated that the recommendations released by the “Malegam Committee” of the Reserve Bank of India (RBI) in response to unrest in microfinance in the Indian state of Andhra Pradesh, would give a boost to the microfinance sector by further encouraging bank lending to MFIs. Mr Akula also stated that the proposed microloan interest rate cap of 24 percent would not impact SKS Microfinance as its lending rate falls below the cap, but that it would impact smaller institutions that are yet to achieve efficiencies of scale. He viewed this recommendation as a measure to encourage consolidation within the sector.
Search Results for: "Unitus"
MICROCAPITAL BRIEF: India’s SHARE Microfin Head Exceeds Limit Set by Companies Act With Salary of $1.6m
Udaia Kumar, the managing director of SHARE Microfin Limited, a non-banking financial institution in India, was reportedly paid a salary of INR 74 million (USD 1.6 million) for the fiscal year ending March 2010. The salary exceeds the limit stipulated by the Companies Act, a law which regulates the operations of firms in India. The act states that a company is not allowed to pay more than 5 percent of its net profit to a director without government permission. A significant portion of Mr Kumar’s salary comprises “sweat equity”, which are shares issued at zero cost to the recipient [1]. The 2008-2009 salary of Mr Kumar of INR 81 million (USD 1.7 million) also exceeded the limit set by the Companies Act, but Share Microfin obtained approval from the Ministry of Corporate Affairs for the surplus pay.
MICROCAPITAL BRIEF: SKS Microfinance of India Increases Loan Loss Provision, Reports 38% Fall in Quarterly Net Profit
SKS Microfinance, a for-profit, publicly traded microfinance institution (MFI) based in India, recently reported total income of INR 3.85 billion (USD 83.8 million) and a 38 percent drop in net profit to INR 341 million (USD 7.4 million) for the period October-December 2010. A 30-percent fall in the share price of SKS has also been recorded since October 2010 [1].
MICROCAPITAL BRIEF: Microfinance Institutions Network (MFIN) of India to Investigate Claims of Improper Handling of Mutual Benefit Trusts (MBTs) by SKS Microfinance, SHARE Microfin and Spandana Sphoorty
The Microfinance Institutions Network (MFIN), a trade association of Indian microfinance lenders, has set up a committee to investigate claims that SKS Microfinance, a for-profit microfinance institution (MFI); SHARE Microfin, a regulated non-banking finance company (NBFC); and Spandana Sphoorty, another for-profit MFI, took advantage of clients through the use of mutual benefit trusts (MBTs) to converting the institutions into for-profit entities.
MICROCAPITAL BRIEF: SKS Microfinance Announces Interest Rate Slash in India
SKS Microfinance, a for-profit microfinance institution (MFI) in India, has announced a universal cut in “effective” interest rates charged to microfinance borrowers from 26.7 percent to 24.6 percent.
MICROCAPITAL BRIEF: Founder of Grameen Bank and Nobel Peace Prize Winner Dr Muhammad Yunus Speaks Out Against the Commercialization of Microfinance Institutions (MFIs)
Dr Muhammad Yunus, founder of Grameen Bank and winner of the Nobel Peace Prize for his work in microcredit, has again spoken out against the commercialization of microfinance institutions (MFIs) and their deviation from the mission of poverty alleviation.
MICROCAPITAL BRIEF: Ujjivan Financial Services Raises $8.8m of Debt Capital Through Non-Convertible Debenture (NCD) Issuance to Developing World Market’s Member Company DWM (Cyprus) Limited
Ujjivan Financial Services, a microfinance institution (MFI) headquartered in Bangalore, India, has raised INR 40 crores (USD 8.82 million) of debt capital through the issuance of non-convertible debentures (NCDs) to Developing World Market (DWM) (Cyprus) Limited, a member company of Developing World Markets, a US-based social investment fund manager.
MICROCAPITAL BRIEF: SKS Microfinance Shares Off 9% Amidst Uncertainty Surrounding Indian Microfinance Sector
Shares of SKS Microfinance, India’s only listed microfinance institution, tumbled to an all-time low on Monday, December 20, as uncertainty surrounding the country’s microfinance sector remained high.
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.
MICROCAPITAL BRIEF: Three Agents of SKS Microfinance Arrested in India After Borrower Complains of Harassment
Three agents of the Indian microfinance institution (MFI) SKS Microfinance have been arrested for allegedly harassing borrowers in the Indian state of Andhra Pradesh.
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.
MICROCAPITAL BRIEF: SKS Microfinance Lowers Interest Rates in Andhra Pradesh to 24.55%
SKS Microfinance, a publicly traded microfinance institution (MFI) based in India, recently announced that it will lower interest rates to for new borrowers borrowers in the state of Andhra Pradesh from 26.69 percent to 24.55 percent.
MICROCAPITAL BRIEF: India’s SKS Microfinance Q2 2010 Profits Jump by 116%
On October 24th, SKS Microfinance, a publicly-traded microfinance institution (MFI) based in India, announced the release of its financial report for the second quarter (Q2) of 2010 ending September 30th.
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Labels IPO of Indian Microfinance Institution SKS “A Critical Transition”
A paper recently published by CGAP (Consultative Group to Assist the Poor) discusses how initial public offerings (IPOs) can shape the microfinance industry.
MICROCAPITAL BRIEF: SKS Microfinance Responds to Probe from Securities and Exchange Board of India on Expulsion of Former CEO Gurumani; Stock Falls Further 6%
SKS Microfinance, a publicly traded microfinance institution (MFI) based in India, confirms that it has received an inquiry from the Securities and Exchange Board of India (SEBI), a government institution whose mandate is to protect the interests of investors, about SKS’s recent expulsion of its former CEO Suresh Gurumani [2].
MICROCAPITAL BRIEF: CEO of India’s SKS Microfinance Steps Down, Stock Falls 6%
On Monday, October 4, Indian microfinance institution SKS Microfinance announced that its Deputy Chief Executive M.R. Rao would become chief executive and managing director for a three-year, replacing Suresh Gurumani. SKS Microfinance did not provide an explanation for the replacement.
MICROCAPITAL BRIEF: Crisil Assigns SKS Microfinance of India “P1+” Rating for $166m Short-Term Debt Program
On September 24, 2010, Crisil, a credit rating agency based in Bangalore, India, assigned a “P1+” rating to the INR 7.5 billion (approximately USD 166 million) short – term debt program of SKS Microfinance, a publicly owned microfinance institution (MFI) based in India.
MICROCAPITAL BRIEF: Muhammad Yunus and Vikram Akula Debate Microfinance Models at Annual Meeting of Clinton Global Initiative (CGI)
At the annual meeting of the Clinton Global Initiative, a forum on international development founded in 2005 by former US President Bill Clinton, Nobel laureate Muhammad Yunus and Vikram Akula, founder of Indian SKS Microfinance, which recently went public, discussed different models for microfinance institutions (MFIs).