Mfi

The auditors flagged the company’s decision not to retrospectively adjust previous financials for expected credit loss (ECL) provisions to the tune of Rs 1,864.91 crore, citing impracticability.

Analysts warn Tamil Nadu MFI lenders may face strain, cite Karnataka fallout

Analysts say that the Tamil Nadu Bill’s vague definition of 'coercive' recovery methods — potentially encompassing persistent follow-ups, late-night calls, or physical intimidation — could lead to inconsistent enforcement.

L&T Finance targets 20% growth in FY26, eyes MFI recovery by Q2: CEO Roy

CEO Roy says, the challenges in the microfinance (MFI) sector are coming to an end, with normalcy expected by Q2 FY26

MFIN defers capping lenders to each borrower by three months, other covenants come into effect

MFIN had in November introduced the measure to reduce number of lenders to a borrower to three, from previously four. MFIN also recommended to cap the indebtedness of a MFI borrower to Rs 2 lakh.

MFI loan disbursements likely to be muted in November

This would be the third straight month of weak disbursements for the sector. Industry leaders warn that prolonged shrinkage in monthly disbursements could significantly hamper access to bank funding for NBFC-MFIs in the near term.

Banking Central | Pushing credit to borrowers beyond capacity sets off stress alarm on small loans

There are signs of a large-scale borrower distress at the small borrower levels. This could have a spillover effect in the overall banking system if the trend persists

RBI asks microlenders to halt the practice of ‘netting off’ loans

The intent behind clamping down on this industry practice, say sources, is to ascertain how many borrowers remain standard should a loan not be rolled over by the lender

RBI to review feedbacks on MFI guidelines when needed, says deputy governor Rao

Some NBFC-MFIs have been requesting the regulator to revise the criteria relating to annual household income limit for giving microloans in view of their growing needs of individual borrowers. They want this limit upped from the existing Rs 3 lakh to about Rs 5 lakh.

MFI stocks trade 7-58% down as finances come under pressure, management issues emerge

Through the past few months, the MFI sector has been facing issues on high provisioning costs and on the management front, besides a slump in collection efficiency

MC Exclusive: Stake sale talks at CreditAccess Grameen hit valuation speed bump

Several suitors, including non-banks and private equity firms, have explored acquiring CreditAccess Grameen, but there has been a valuation mismatch.

Muthoot Microfin opens its first branch in Andhra Pradesh

Andhra Pradesh has had a history when it comes to MFI. The state saw pressure in the MFI business in 2010 after which the state government imposed severe restrictions on MFI activities.

Muthoot Microfin plans to raise around Rs 9,000 crore through different borrowing channels in FY25: CEO

In addition to the borrowing targets, Sadaf Sayeed said that the company will look at growing slowly in Bihar due to issues pertaining to stress on the portfolio and will focus on Telangana and Andhra Pradesh and other south-Indian states.

Microfinance regulatory bodies lay out guidelines to lower interest rates

The MFI sector has been facing issues concerning charging high interest rates in some pockets. The regulator recently highlighted this. The self-regulatory organisations for the sector bring in norms like a cut in lending rates, extra layer of underwriting, etc. Will this hurt the sector?

Budget 2024: Microfinance industry seeks special funding, tax relief on affordable housing

The microfinance sector put up robust growth in the January-March quarter of 2023-24, with the loan portfolio growing 23.6 percent

Satin CreditCare plans to raise Rs 10,000 crore in debt in FY25, says CMD

The microfinance lender is targeting a 25 percent growth in assets under management in the current financial year, said HP Singh.

Banking Central | Microlenders, it's time to take a pause and think again, lest it hits you back

The RBI removed the cap on margins in November 2022, opening the field for microlenders to decide lending rates of their choice

Ghost of Andhra MFI crisis haunts again as lenders in Bengal, Assam charge up to 40% interest on loans

There is no cap on the interest rates as the RBI had in November 2022 removed limits on the pricing of loans given by these entities

Microfinance industry grows 21% in Oct-Dec quarter, shows Sa-Dhan data

MFIs continued to occupy the largest share in the pie with 40 percent and followed by banks at 32 percent and SFBs at 18 percent.

Banking Budget: Small finance banks and MFIs pitch for funding support and sector-oriented policies

Banking Budget 2024: Though some small lenders are looking with optimism to lend to SMEs, lending to micro and small industries stood at 17.2 percent of total advances in November 2023 versus 19.3 percent in November 2022, according to recent Reserve Bank of India (RBI) sectoral credit data.

Budget 2024: Small lenders pitch for SME funding support, sector guaranteed scheme

Budget 2024: Microfinance institutions and small finance banks are expecting reforms pertaining majorly to their lending activities. A clutch of executives from microfinance institutions (MFI) and small finance banks (SFB) pitched for funding support and the need for a sector guaranteed scheme from the upcoming budget.

Chart of the Day | Microfinance rides high on growth

Microfinance players have expanded by penetrating unexplored areas and fast-growing North, Central and West regions

NBFC-MFIs may see profitability surge to 2.7-3% in FY24, ICRA estimates

The agency also said that the assets under management (AUM) growth could be at 24-26 percent in FY2024 and 23-25 percent in FY2025.

MFIs post robust profit and healthy asset quality in Q1

Disbursements at microfinance institutions grew strongly and their customers increased the digital usage of services.

Why Sachin Bansal sold Chaitanya to Birla despite its success

If not for Sachin Bansal’s ambition to get a banking licence, there was a cultural and strategic misfit between what Chaitanya was and could be. He wants Navi to be an urban 100% digital banking firm. But without a banking licence, it is a long hard journey to become a large financial services player in India.

CreditAccess Grameen climbs on $200-million overseas loan deal

This is the first social external commercial borrowing loan in the country's microfinance industry and the fourth from India