MFI Transactions

DFS secretary M Nagaraju flags a sharp fall in loan accounts and disbursals, urges MFIs to introspect, consolidate operations, and revive passion for financial inclusion

ICRA expects MFI credit cost to fall after surging in FY25, easing to 4-4.5% in FY26 and 3-3.5% in FY27, with AUM growth seen resuming at 8-12% as RBI relaxes norms

CRISIL says MFI profitability to normalise only by end-FY26 as legacy slippages and state-level disruptions in Karnataka and Tamil Nadu slow down recovery prospects

While the microfinance industry (MFI) is still navigating stress, JM Financial believes CreditAccess Grameen is best positioned to recover early

IDFC First Bank chief says not insuring the microfinance portfolio earlier worsened FY25 losses but confirms that 66 per cent of the book is now covered under CGFMU

Bank has not engaged EY to conduct a forensic audit of MFI biz, the lender clarified

The assets under management (AUM) of microfinance institutions (MFIs) in the state stood at Rs 60,000 crore at the end of March 2024

The dealing with internal factors would mean entities require more discipline and emphasis on corporate governance and compliance

The number of microfinance loans extended by all lenders declined in the September quarter, but an increase in the average ticket sizes helped in the quantum of lending to grow, a report said on Tuesday. The industry's self-regulatory body Microfinance Industry Network (MFIN) said the overall loan portfolio grew to Rs 3,76,110 crore at the end of September, up from Rs 3,55,977 crore in the previous quarter and Rs 3,00,974 crore in the year-ago period. The financiers made loans of Rs 76,054 crore in the September quarter as compared to Rs 71,916 crore in the year-ago period, but the number of loans declined to 1.69 crore from 1.81 crore. The average loan size increased to Rs 45,124 at the end of September as against Rs 39,725 in the year-ago period, and Rs 43,298 in the quarter-ago period, the report said. MFIN's chief executive and director Alok Misra said the industry added 1.9 crore unique borrowers in the first six months of the new fiscal, helping the wider agenda of financial

One reason for this shift in trend could be that banks faced challenges in managing this asset class, especially after the outbreak of the Covid-19 pandemic and the resultant lockdowns

R Baskar Babu, managing director & chief executive officer of Suryoday Small Finance Bank, tells Manojit Saha in an interview that the regulator wants these lenders to rebalance the portfolio

According to experts, haphazard regulation of the MFI sector may be tantamount to throwing the baby out with the bathwater

Process has been initiated to bring payments by digitising transactions of Svatantra Microfinance