Microfinance

Rising micro loan stress: Lenders tap digital debt collection platforms

Spocto X and Credgenics are end-to-end debt collection platforms focused on digitizing the entire collection process

Sa-dhan seeks new MFI refinance body, calls for more equity support

Sa-dhan has urged the government to set up a dedicated MFI refinance body and increase flexibility in the India Microfinance Equity Fund to address funding challenges in the microfinance sector

RBI invites application for SRO in account aggregator space by June 15

The complexity necessitates frequent coordination among REs to address various operational issues

Microfinance firm CreditAccess says asset quality, overdue loans moderating

Company expresses concern about business growth in Karnataka where it has its headquarters

Arcil buys Ujjivan Small Finance Bank's stressed loan folio for Rs 34 cr

ARCIL's bid translates into a recovery of 9% for the lender

Microfinance loan book shrinks 3.5% to Rs 3.85 trillion in Dec quarter

Share of overdue loans shoots to 6.4%

The phoenix of India's financial system: Microfinance's path to recovery

Karnataka is going the Andhra, Assam way to take the microfinance industry head-on. Will it rise from the current mess?

Bandhan Bank Q3FY25 results: Net profit drops 42% to Rs 426.5 crore

The lower profit was attributed to a change in the accounting policy for ESOPs, higher provisions due to stress in the microfinance portfolio

Private banks stumble on agriculture, microfinance slippages in Q3

Credit cost for most of the lenders increased due to higher provisions, mainly for unsecured retail loans

'Risk appetite for microfinance portfolios among ARCs not that high'

In acquisition, we are almost there. And in terms of recovery, if I take the target up to December, we have achieved it, said Pallav Mohapatra, MD & CEO of Asset Reconstruction Company

MFIN dismisses reports about alleged harassment by microfinance firms

The Microfinance Industry Network (MFIN) on Thursday dismissed reports about alleged harassment by microfinance companies in the state, claiming that a small section of "ill-informed" individuals with the aid of unauthorised entities were indulging in "unscrupulous" rumourmongering. Recently, various organisations also staged protests in different parts of the state condemning the atrocities and oppression carried out by microfinance companies and demanded action against them. "The recent reports of protests against MFIs are from a small section of "ill-informed" individuals with the aid of unauthorised entities, indulging in unscrupulous rumourmongering," Rama Kamaraju, Head, State Initiatives, MFIN said in a press conference here. The MFIN is a Self-Regulatory Organisation recognised by RBI and the Association of Karnataka Microfinance Institutions. "We wish to assure you all that we follow a very well calibrated advisory approach and have our eye on the ball at all times," he ..

Microfinance sector shows signs of stress as delinquency rates rise

The Reserve Bank of India's Financial Stability Report of December 2024 had observed that the microfinance sector is showing rising delinquencies across lenders and ticket sizes

Borrowers with microfinance, retail overlap have higher delinquency: CRIF

The report highlighted that borrowers with an overlap of microfinance and retail loans exhibited higher delinquency rates compared to those with only microfinance loans.

MFI portfolio declines 4.3%, bad assets spike in Sep quarter: Report

Microlending outstandings in the system reduced 4.3 per cent to Rs 4.14 lakh crore in the September quarter as lenders adopted a cautious stance amid deteriorating asset quality, a report said on Wednesday. Loans unpaid for 1-30 days increased to 2.1 per cent from the 1.2 per cent in June, while the ones unpaid for 31-180 days witnessed a sharper rise at 4.3 per cent as against 2.7 per cent in June, credit information company Crif High Mark said. The microlending universe is facing multiple headwinds for the past several months, and the regulator has blamed industry practices, including multiple lending to the same borrower by different entities and charging usurious interest rates with a view to expand profits as among the problems. The last few months have seen a drop in collection efficiencies, and the industry has swung into action with corrective steps that are leading to a dip in the overall outstandings. Data from the credit information company said only non-banking financia

Stress in microfinance sector doubles in April to September period: RBI

Earlier, the RBI had warned that some NBFCs, including MFIs, were adopting a "growth-at-any-cost" approach and cautioned that regulatory action would be taken if necessary

Microfinance growth to nosedive to 4% in FY25, says CareEdge Ratings

Lenders slam brakes on disbursals amid rising stress

Microfinance loan book shrinks by 3.7% sequentially to Rs 4.08 trn in Sep

However, the GLP grew by 8.5 per cent year-on-year (Y-o-Y) to Rs 4.08 trillion in September 2024, up from Rs 3.76 trillion in September 2023

MFIN to further tighten norms for micro-loans from January 2025

Reduces MFIs per borrower to three from four

SME, microfinance stress to add pressure on IIFL's asset quality: Fitch

Affirms IIFL Finance's long-term rating; removes from rating watch negative

Bumps on MFI road: Microfinance biz turns cautious as delinquencies rise

Business correspondents have helped deepen banking penetration in the nearly two decades they have been around. Can they play a role on the field for MFIs?