SIDBI keen to expand exposure in MFI industry as it posts 25% annual growth

Pure-play MFIs have been a significant contributor to the growth in microfinance lending and have posted double the growth rate compared to traditional banks in the last fiscal

In the backdrop of the domestic microfinance industry posting an annual growth of about 25%, the Small Industries Development Bank of India (SIDBI) is keen to increase exposure in the sector.

Till June 30, 2018, SIDBI had augmented the capacity of 100 microfinance institutions (MFI) in the country and provided cumulative loans worth Rs 175 billion, thus reaching 38 million beneficiaries.

“SIDBI has been a pioneer in the micro-finance space by providing financial assistance in the form of equity/quasi-equity, term loans and grant support to MFIs, while also advocating and implementing various ‘responsible’ lending practices,” SIDBI CMD Mohammed Mustafa has