MFIs lose lending space to banks

The share of NBFC-MFIs came down to 31% at the end June, according to the Microfinance Institution Network

When Bharat Financial Inclusion, earlier known as SKS, informed the stock exchanges last month that it was in talks with IndusInd Bank on a merger, the share prices of Bharat Financial hit a 52-week high and touched Rs 979.

For Bharat Financial shareholders, it brought hope in the midst of uncertainty surrounding the economic viability of standalone microfinance firms.

The possible merger of the largest microfinance firm in India with a bank ties in with the rising clout of banks in microfinance and its loss of its monopoly.

According to industry insiders, this could spur many more mergers.