Microfinance Firms

MFIs need to rebuild credibility, confidence to achieve growth: Study

Microfinance institutions (MFIs) need to rebuild credibility and confidence to achieve sustainable growth, a joint study by consultancy firm PwC and Sa-Dan, a self-regulatory organisation (SRO) of the sector, said. Microfinance, which is principally underpinned by trust among the stakeholders, who are the borrowers, field officers and lending institutions, has become more transactional, the study said. Major setbacks like demonetisation and the Covid pandemic have further exacerbated the decline in group culture in microfinance, which has had a widespread impact on repayment discipline and public confidence, the study pointed out. "Rebuilding credibility and confidence remains a major challenge to achieving sustainable growth", the study said, adding that empowering and equipping customers with adequate information is crucial in regaining their trust. According to the study, MFIs have also experienced declining support from external stakeholders, including investors and refinancers

Muthoot Microfin Q2 profit halves to Rs 30.5 crore, NII down 13%

The microfinance lender's profit drops 50.5% YoY amid lower interest income; sequential growth aided by stable margins and slight loan portfolio uptick

Worst is over but liquidity support remains a key concern, say MFI chiefs

Industry leaders at the Business Standard BFSI Insight Summit said that while collections and rural affordability are improving, liquidity support is critical to sustain the sector's ongoing recovery

Avendus explains why it is the 'opportune time' to invest in MFI stocks

MFI stocks india list: As the MFI industry navigates through the transitional phase, Avendus lists why it is bullish on the sector from a medium-to-long term perspective, and what should investors do

Spandana Sphoorty plans to scale back operations in Kerala and Gujarat

Stock down 4.4 per cent on BSE; eyes 20 per cent AUM growth in FY26

Spandana Sphoorty CEO Saxena resigns; CFO Damani named interim chief

The stock of the company closed six per cent lower at Rs 305.2 per share on BSE

Microfinance firm Satin Creditcare expects 10-15% loan growth in FY26: CMD

Microfinance firm Satin Creditcare Network is aiming 15 per cent loan growth during the current financial year, on account of expected good monsoon and easing interest rates. "We have closed FY '25 with the Assets under Management at Rs 11,300 crore registering a growth of 7 per cent but the coming year should be better in terms of business," Satin Creditcare Network Chairman cum Managing Director HP Singh told PTI. The stress in the microfinance sector is settling down and it should take one or two quarters for things to get normal depending on the individual entity, he said. Going forward, he said, "we expect loan growth of 10-15 per cent as there is normal monsoon forecast and easing interest rate bringing down cost for us and our customers." Asked about fund needs to meet business expansion, he said, there is a good pipeline to take care of growth requirements for the current financial year and the company can raise further capital in case of need. Last month, Satin Creditcare

MFI loans down 41.7% to 11.9 million in Dec quarter, NPAs zoom: Report

The number of microfinance (MFI) loans disbursed by lenders declined 41.7 per cent to 1.19 crore in the December quarter, according to a report by credit information company Crif High Mark. The amount disbursed to the borrowers who come from the poor and marginalized communities declined 34.9 per cent to Rs 63,440 crore as against Rs 97,400 crore in the year-ago period. Loans unpaid for 31 to 180 days jumped to 6.4 per cent of the portfolio at the end of December 2024, from the 2 per cent level in the year-ago period, the Crif report said. The overall portfolio declined by 4 per cent on-year and by 5.4 per cent on- quarter to Rs 3.91 lakh crore, the report said, attributing it to industry calibrations, including regulatory guidelines, risk realignmentand changes in underwriting and collection strategies. Crif said the ongoing shifts on the metrics may have its origins in the moves undertaken by the industry lately. "Stricter regulatory guidelines, such as caps on the number of ..

Spandana Sphoorty slips 6% in 2 days, nears record low on growth concerns

In the past six months, the market price of Spandana Sphoorty has tanked 60 per cent, as compared to the 10 per cent decline in the BSE Sensex.

Microfin ordinance sent to K'taka Guv, gives up to 10 yr jail for violation

Aimed at protecting borrowers from harassment by microfinance institutions (MFIs), the Karnataka government has drafted an ordinance, with penal provisions, including a jail term up to ten years, and fine as high as Rs five lakh for violation. Confirming this, State Home Minister G Parameshwara on Tuesday said, the Karnataka Micro Finance (Prevention of Coercive Actions) Ordinance 2025 has been sent to Governor Thaawarchand Gehlot for his assent. "It was three years (in initial draft), now we have increased it. Fine has also been increased to five lakh. This is to ensure that the heat of the law is felt (by violators). If a law is made with perfunctoriness just like that, such incidents won't stop. Hence, the fine (amount) and imprisonment (period) has been increased, so that it in a way, becomes a deterrent," Parameshwara said, responding to a question about punishment being increased to ten years imprisonment. Speaking to reporters here, he said, "The Governor was out of town, and

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

CreditAccess Grameen shares soar 10% on Jan 2 on heavy volume

CreditAccess Grameen shares: Spandana Sphoorty share price gained 3.6 per cent intraday today; Equitas Small Finance Bank 2.2 per cent; IndusInd Bank 1.9 per cent; and Ujjivan SFB 1 per cent

Ujjivan Small Finance Bank looks to sell Rs 270 cr of micro-banking loans

Of the Rs 270 crore worth of loans, around Rs 208 crore are non-performing loans, and the remaining Rs 62.36 crore worth of loans have been written off by the bank

Stress in MFI sector largely due to customer overleveraging: Motilal Oswal

Situation to last for whole of FY25, with Q2 being the most challenging period, it says

CreditAccess Grameen share price hit 52-wk low on weak Q2 disbursements

The fall in CreditAccess Grameen share price came after the company's disbursements dropped 19% annually to Rs 4,004 cr in Q2FY25, from Rs 4,966 crore in Q2FY24.

Why have microfinance stocks hit 52-week lows today? Check details here

The microfinance industry is currently facing a significant rise in delinquencies, primarily driven by increasing borrower indebtedness, apart from other factors.

Microfinance growth driven more by lenders' loan disbursement than demand

Borrowers are being chased by different kinds of lenders -- universal banks, small finance banks, NBFCs, MFIs and fintechs

Delinquencies in microfinance sector may push NBFC-MFI credit cost: ICRA

Increasing delinquencies in the microfinance sector is likely to push up the NBFC-MFI credit cost to 320-340 bps in 2024-25 from 220 bps in the previous financial year, according to an Icra report. Non-banking financial companies microfinance institutions' (NBFC-MFIs) AUM growth is also likely to moderate to 17-19 per cent in the current financial year from 29 per cent in 2023-24 amid rising concerns about asset quality, it said. The report said the robust growth in the last two years has accentuated concerns about potential overleveraging of borrowers in certain regions. "Further, farmers' protests and the Karz Mukti Abhiyan in certain regions, especially Punjab and Haryana, have impacted collections and the asset quality. "This, along with climatic conditions and operational challenges, including employee attrition, would keep the asset quality under pressure in the near term. As per Icra's estimates, non-performing assets (NPAs) have increased by 30 bps in Q1 FY2025," it ...

Ananya Birla's Svatantra to acquire Navi Group's Chaitanya for Rs 1,479 cr

The acquisition is set to position Svatantra as the second largest NBFC-MFI in India, fostering a boost to microfinance reach and impact