Page 3 - Mfis

No of MFI loans extended by lenders dips in Q2, average ticket sizes grow

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

NBFC-MFIs the largest provider of microfinance in India: MFIN Report

Microfinance Industry Network (MFIN), an umbrella body of microfinance institutions (MFIs) of the country, in its report said that NBFC-MFIs are the largest provider of micro-credit amongst other regulated entities. In a report of the MFI sector prepared by MFIN for the year 2022-23, it said that in the microfinance space, NBFC-MFIs provided finance with loan outstanding of Rs 1,38,310 crore as on March 31, 2023, accounting for 39.7 per cent of total industry portfolio. Banks, on the other hand, hold the second largest share of portfolio of micro-credit with total outstanding of Rs 1,19,133 crore, comprising 34.2 per cent of the total in the microfinance space. Small finance banks (SFBs) have a total outstanding of Rs 57,828 crore with a total share of 16.6 per cent, the report said. At the end of the last financial year, the total MFI portfolio stood at Rs 3,48,339 crore. According to the report, the MFI sector has immense growth potential with the market size estimated by MFIN t

India's microfinance sector will continue to thrive, get bigger

It is important to appreciate the virtues displayed by stakeholders towards the vision of empowering low-income households

Fusion Microfinance to enter Andhra, Telangana, open up to 30 branches

MFI plans to open 150 branches across the network across the country in the current financial year

TMS Ep459: Electric two-wheelers, Gurugram realty, MFI stocks, WhatsApp

Can E2Ws survive without subsidies in India? Is Gurgaon the hottest property market? What's fueling the rally in microfinance stocks? How can you silence spam calls on WhatsApp? All answers here

Gross micro loans portfolio grows 20% in December quarter: Report

The gross micro loans portfolio grew 20 per cent to Rs 3.16 lakh crore in the quarter ended December 2022 as compared to the year-ago period, a report said on Friday. The gross loan portfolio growth came at 5.5 per cent when compared to the September quarter, according to the report by credit information company Crif Microlend. Delinquencies of advances overdue for over 90 days by value declined 1.7 per cent while as a percentage of overall advances, it was at 2 per cent at the end of December 2022 as against 2.7 per cent in the year-ago period. The coronavirus pandemic had impacted the microfinance sector as field agents were unable to visit borrowers to extend loans and also ensure timely repayments. The report said that non-bank finance companies continue to dominate the market with a 35.7 per cent share, followed by banks at 33.5 per cent and small finance banks at 16.9 per cent.

MFIs' net profit more than doubles in Q3 on buoyant interest income

The interest income expanded by 25% YoY to Rs 2,414 crore and sequentially, it rose 9.7% from Rs 2,201 crore in Q2FY23

NBFC-MFIs overtake commercial banks in micro loan market share in Q2

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

Having more than one SRO is good for business: Sa-dhan CEO Jiji Mammen

'Multiple SROs mean a greater number of watchful eyes'

Microfinance disbursements slowed in Q1 FY23 after new regulations: MFIN

Lenders needed time to make policy changes after norms were updated in March 2022, says industry group

RBI mulls allowing P2P firms to diversify risks by entering secured lending

There has been exponential growth in P2P lending in recent years

Microfinance loans grow 24% YoY in Q1 of FY23; credit quality stable

Fund flow to the sector has improved but some smaller MFIs still find it difficult to access finance from banks

Microfinance loan securitisation grows over two-fold YoY in Q1FY23

Better recoveries, adequate credit enhancements spark investor confidence

Annapurna Fin eyes Rs 8,500 cr in assets by March 23; mulls SME credit arm

Gets $15 mn in equity from French investors, total fundraise reaches $100 mn

Equitas SFB dips 11% on resignation of MD & CEO P N Vasudevan

P N Vasudevan resigned as the managing director and chief executive officer of the Equitas Small Finance Bank for a career in health and education.

Macro challenges of micro lenders

The freedom to fix interest rates has encouraged a few MFIs to jack up rates on Day One. It will take a while for borrowers to get the benefit as products, processes and digitisation evolve

Spandana Sphoorthy, former MD Padmaja Reddy heading for truce over dues

Sources say many details yet to be worked out, and that it isn't clear if talks will lead to a comprehensive pact to end strife. Clarity expected in 10-15 days, they add

West Bengal accounts for 10.4% MFI loan portfolio, second in India: Report

As on September 2021, the total loan portfolio in entire eastern India stood at Rs 2,25,331 crore, a growth of 1.4 per cent year-on-year

RBI's new rules for MFIs to aid profitability, says Crisil Ratings

RBI's new rules for microlenders, who have been deeply impacted in pandemic because of loan losses, will help widen profits by giving such entities greater flexibility in operations, a report said

New chapter in microfinance: End of overleveraging?

The RBI finally had to step in since self-regulatory organisations have failed to address a few banks' enthusiasm for overleveraging hapless small borrowers