Though both lenders have delivered strong earnings growth, driven by a sharp decline in credit costs, their stock performances have diverged significantly
However, sources say that Creation Investments, another stakeholder in Fusion, is hesitant to fully back the initiative.
The private lender’s fresh slippages in the reporting quarter stood at Rs 1,675 crore, as compared to Rs 1,177 crore in a year ago period, and Rs 1,875 crore in a quarter ago period.
In an interview on CNBC-TV18, Sunil Agarwal, MD of SE Investments Ltd confirmed that microfinance lending has taken a hit. "Currently, the share of book in microfinance is around 36%. It has gone down from 48-49% which is what it used to be because of low supply."
The central government bill on microfinance companies is likely to make RBI the single regulator for the sector. The bill may also supersede all existing state legislations on MFIs, reports CNBC-TV18's Gopika Gopakumar.
The microfinance sector received a huge leg up, first from the finance minister's budget speech and most recently, the RBI's acceptance of the Malegam Committee recommendations where it has re-affirmed priority sector status for microfinance.
The budget has proposed to set up a Rs 1 billion equity fund for the microfinance sector, which has witnessed turbulence in the past few months after the southern state of Andhra Pradesh put in place tough regulations.