MFIs need up to Rs 11,000 cr over next three years: Report

In FY17, MFIs and SFBs raised an aggregate of Rs 4,713 crore of equity capital

Microfinance institutions (MFIs) and small finance banks are likely to need an external capital of Rs 9,000-Rs 11,000 crore to grow at a CAGR of 25-30 per cent over the next three years, says a report.

The report by a domestic rating agency, ICRA, said the credit costs for the industry as a whole is likely to be in the range of 5.5-8 per cent for the financial year 2017-18.

"Given their higher expected credit costs for FY18, we estimate that MFIs and SFBs together would need external capital of Rs 9,000-11,000 crore for growing at a CAGR of 25-30 per cent