Microfinance Institutions

The microfinance lender said unauthorised transactions were made from one of its bank accounts on November 1, and it has sought fund recovery and the freezing of beneficiary accounts

A tweak in microfinance norms may be needed as flight to safety overrides growth objectives

To widen borrower eligibility, the microfinance industry wants the household income threshold increased to Rs 300,000 per annum to adjust for inflation in the past five years since it was last hiked.

The initiative aims to improve governance and operations as smaller MFIs say access to bank funding remains constrained

Rating agency says diversification into gold, MSME and property-backed loans, along with a recovery in microfinance disbursements, will drive growth this fiscal

The microfinance industry body expects stronger participation in the government's credit guarantee scheme after its validity was extended to August 31, 2026

Banks are likely to remain cautious in lending to MFIs despite the credit guarantee scheme, with underwriting standards and risk assessment frameworks unchanged

Scheme aims to ease liquidity constraints, boost credit flow to small borrowers, and support microfinance institutions with graded guarantee cover and lending norms

Experts are calling for a reimagination of microfinance as credit costs rise with higher risk provisions and writeoffs

KVB MD B Ramesh Babu talks about the future road map, product strategy, and business growth

Even as banks boast healthy books, concerns remain across the financial landscape. Raghu Mohan and Abhijit Lele explain why work is not yet complete

While small finance banks are solvent and working well, we need to ask if there has been a breakthrough in stretching the inclusion agenda beyond MFIs

While Provisions bill dips; income flows stay subdued

At an MFIN event in Mumbai, RBI Deputy Governor Swaminathan J. said microfinance lenders must ensure pricing reflects cost and risk, improve borrower assessments

Microfinance institutions (MFIs) need to rebuild credibility and confidence to achieve sustainable growth, a joint study by consultancy firm PwC and Sa-Dan, a self-regulatory organisation (SRO) of the sector, said. Microfinance, which is principally underpinned by trust among the stakeholders, who are the borrowers, field officers and lending institutions, has become more transactional, the study said. Major setbacks like demonetisation and the Covid pandemic have further exacerbated the decline in group culture in microfinance, which has had a widespread impact on repayment discipline and public confidence, the study pointed out. "Rebuilding credibility and confidence remains a major challenge to achieving sustainable growth", the study said, adding that empowering and equipping customers with adequate information is crucial in regaining their trust. According to the study, MFIs have also experienced declining support from external stakeholders, including investors and refinancers

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

The management holds an encouraging outlook for the current financial year with favourable monsoon forecasts and strengthening rural sentiment laying the groundwork for sectoral development.

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

Stock down 4.4 per cent on BSE; eyes 20 per cent AUM growth in FY26

IAD also flags ₹595 crore of unsubstantiated balances in "other assets", as whistleblower complaint prompts deep dive into IndusInd Bank's microfinance portfolio