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Subdued growth may trigger consolidation for MFIs: CRISIL

The MFI sector’s growth is likely to remain subdued over the medium term, especially in regions with high microfinance penetration, because of proposed regulatory restrictions on multiple lending, loan size, and end-usage of loans, says Ms. Rupali Shanker, Head, CRISIL Ratings

May 09, 2011 / 17:25 IST

RBI guidelines should improve profitability, but regulatory jurisdiction remains unclear.

Growth prospects for microfinance institutions (MFIs) will remain subdued over the medium term. Operating challenges arising from the Reserve Bank of India
first published: May 9, 2011 05:00 pm

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