At present, MFIs can lend 15 percent of their total assets outside the guidelines governing MFI lending. Such loans do not qualify as priority sector lending (PSL).
The price band of the much-awaited IPO has been finalised at Rs 370-375 per share and the bid would remain open from March 15 to 19.
Credit Suisse feels that the firm remains the most cost-efficient MFI, and there could be further opex gains from the technology adoption, a clear upside risk to its earnings estimate.
Rashesh Shah of Edelweiss Financial Services believes the market seems to be settling at a fairly strong base. He now sees strong credit growth coming from outside of the banking arena.
The media has been abuzz with the rumours of IndusInd Bank (IIB) and Bharat Financial Inclusion (BHAF) coming together. This isn‘t the first marriage in the space. In the past, IDFC Bank had acquired Tamil Nadu-based Grama Vidiyal Microfinance and Kotak Bank had acquired BSS Microfinance. So there are clearly merits of acquiring a Micro Finance Institution (MFI) for a bank.
National Payments Corporation of India (NPCI) today said it has started a pilot project to digitise the transactions in micro finance institutions (MFIs).
Speaking to CNBC-TV18 Romesh Sobti, MD & CEO of Indusind Bank said that CV sales in November weren‘t as bad as expected. December wasn‘t as bad as forecast.
The report said that on account of non-availability of cash post demonetisation, the borrowers were not in a position to service their loans which led to delay and drop in collection rates.
Speaking to CNBC-TV18 Rashesh Shah, Chairman & CEO of Edelweiss Financial Services said that from April next year growth should bounce back. â€œDemonetisation hasn‘t changed the structural demand-supply balance, but it has only got dislocated.â€
Speaking to CNBC-TV18 PH Ravikumar, Non-exec Chairman, Bharat Financial said that they are perhaps the only sub-20 percent charging rural finance MFI.
Speaking to CNBC-TV18 Nilesh Shetty of Quantum AMC said that the long-term structural story isn‘t damaged, but the near-term outlook looks a bit shaky. There will be impact on GDP growth, he said, from demonetization. The next 12 months are going to be tough for equities, he said.
Speaking to CNBC-TV18 Mihir Vora, Director and Chief Investment Officer of Max Life Insurance said that the next three months would be a good time to start building a portfolio.
Analyst believe that destination tax, if it goes through in US then it will impact many emerging markets significantly. On the other hand, Ajay Tyagi of UTI MF says India will be relatively less impacted because 70 percent of the country's GDP is domestic consumption.
In an interview with CNBC-TV18 Deepak Kesarkar, Minister of State for Home, Maharashtra said that there have been several complaints from districts across the state regarding harassment of women by MFIs.
Utkarsh Micro Finance today said it has received final nod from the Reserve Bank of India to start operations as small finance bank.
India Ratings & Research expects demonetization to affect micro finance institution borrowers as well as micro finance institutions or MFIs country wide, although temporarily.
In conversation with CNBC-TV18, PH Ravikumar, Non Executive Chairman, Bharat Financial Inclusion, said demonetization will be a problem for MFIs for 10-12 days. There may be 2-3 weeks delay in payments but it will be caught up in the next 5 months.
The microfinance lender, which listed on the exchanges on Tuesday, targets 30 percent growth in AUM over next couple of years by expanding into lending for micro small and medium enterprises sector and housing finance along with further diversification into the unbanked and under-banked regions of the country, says CFO Sudha Suresh.
Digant Haria, AVP - Equity Research, Antique Stock Broking, believes the easy money has been made in the stock following the gains and that going forward, only long-term investors should get into it.
ICRA assigned an MFI rating of A- to Svatantra Microfin Private Limited (Svatantra) a next gen start-up Microfinance Institution, led by Ms. Ananya ...
The microfinance industry in India has gone through its fair share of ups and downs. From being the largest MFI industry in the world between 2005 and 2010 to almost coming to a grinding halt as a fallout of the Andhra Pradesh crisis, the MFI industry in India is steadily getting back on its feet and looking at better days ahead
SKS Microfinance has slashed interest rate by 1 percent charged to borrowers to 19.75 percent from 20.75 percent with effect from December 7, 2015, for all future disbursals.
In any industry, increase in competition thins margins. In banking, the number of players is set to increase from 45 in 2014 to 66 by 2016, which is a 45 percent rise in the number of competitors.
NBFC-MFIs accounted for 88 percent of the loans, followed by Societies and Trusts at 9 percent, it said.
The government has reportedly identified some of the weak state-run banks to be merged with large ones. But nothing has moved to any concrete plans.