Page 8 - Microfinance Industry

NPAs rise in tandem as MFIs gross loan portfolios grow by 29% in FY20

More than 92 per cent of MFI loan disbursement in FY20 were in cashless mode, as compared to 85 per cent in FY19

MFIs could lose Rs 1,500 cr on foregoing moratorium interest on interest

Industry fears waiver of interest on interest would distort credit culture, may encourage borrowers who can pay to defer repayment

Despite moratorium, rural recoveries on rise for microfinance institutions

Income from harvesting season, along with the essential nature of rural occupations, helped rural borrowers to be more resilient to the economic slowdown due to Covid

Govt mulling more policy action for NBFCs, regulatory changes for markets

This comes after Finance Minister Nirmala Sitharaman interacted with country's top regulators at FSDX meeting on Thursday

Manappuram Finance posts 30% growth in profit before tax in Q4FY20

Profit before tax from gold loan and others grew 44.5 per cent to Rs 459.47 crore during the quarter, as compared to Rs 317.97 crore during same quarter a year ago

Allow restructuring of loans, ask raters not to downgrade: NBFCs to RBI

Mutual Funds say they didn't need to use their liquidity line fully

Sidbi, Nabard compete to lend to top MFIs under RBI's liquidity support

According to informal estimates, the two organisations together are looking to extend Rs 7,000-8,000 crore in funding

Sidbi to provide liquidity support to NBFCs, MFIs with 90-day term loans

NBFCs and MFIs have been hit on two fronts, with collections dipping due to the covid-19 lockdown, and the three-month moratorium extended to their borrowers

MFIN may pool securities to access funds for small MFIs under TLTRO 2.0

Credit enhancement would entail guarantee from bigger institutions in case of defaults up to a certain percentage

MFIs staring at cash shortfall of Rs 2,600 crore in Q1FY21, says ICRA

ICRA has analysed a sample of 29 MFIs, which constitute around 70% of the MFI industry on a portfolio basis

Microfinance Industry most vulnerable to lockdown and moratorium

As first order impact, collection cycle may be hit, while lack of moratorium-relief from banks may squeeze out liquidity

Covid-19 impact: Confusion over moratorium norms hit smaller MFIs hard

Many are worried about not being able to meet their loan obligations this month; several either have started defaulting or are about to

MFI operations come to halt in lockdown districts; biz severely impacted

Estimates suggest the locked down districts account for close to 50% of microfinance business in India; banks and SFBs could also be impacted

Why microfinance crisis is still not over even 10 years after the clampdown

Andhra Pradesh's Ordinance to regulate MFIs has been a double-edged sword for the poor, with some digging deeper into debt, writes Namrata Acharya

Assam continues to be a pain point for MFIs as defaults remain high

The portfolio at risk (PAR) for the industry for repayment between 31 and 180 days stood at 1.5 per cent, which was 50 per cent higher on a year-on-year basis

Microfinance segment showing signs of stress with lenders chasing customers

Padmaja Reddy says while the MFI industry may have grown to Rs 2 trillion, the share of pure-play entities is only Rs 60,000 crore.

MFI industry seeks more refinance from DFIs in budget

The industry has also urged the government to create a dedicated fund for MFIs which are financing water and sanitation projects

Sachin Bansal eyes bigger role in global financial services market

In September, Bansal had invested around $104 million to acquire over 90 per cent ownership of Chaitanya

Anti-CAA protests in Assam: MFIN asks RBI forbearance for extended payments

The anti-CAA protests have led to delays in repayments in the entire north-east region, pockets of Uttar Pradesh, as well as in parts of West Bengal

MFI sector growth falters and defaults rise with Assam protests, slowdown

Natural calamities, over-lending and liquidity issues with NBFCs add to the sector's woes