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Micro Finance
Disbursement of microfinance loans has declined 35.8 per cent to Rs 22,091 crore during the third quarter ending December 2024 as compared to the similar previous corresponding period, Microfinance Institution Network (MFIN), an umbrella body of the microfinance institutions (MFIs), said in its report. Assets under management (AUM) of the MFIs at the end of December 2024 stood at Rs 1,42,695 crore, showing a decrease of 0.1 per cent against the same period ending December 2023. The average loan amount disbursed per account during the third quarter was Rs 51,691 crore, registering an increase of 15.2 per cent in comparison to the same quarter of the previous fiscal. Portfolio at risk (PAR), defined as unpaid loans of more than 30 days, deteriorated to 8.8 per cent as of December 31, 2024, compared to 3.5 per cent in the previous corresponding period ending December 31, 2023, the report said. During the current third quarter, NBFC-MFIs received debt funding of Rs 12,921 crore, mainly
Outstanding of SIDBI to the micro-finance institutions (MFIs) will touch Rs 10,000 crore by the end of the current financial year ending March 2024, an official said on Thursday. In the last financial year, the refinancing development financial institution (DFI) had an outstanding of Rs 5,000 crore to the NBFC-MFI sector, the official said. "SIDBI started supporting MFIs since 1995-96 and has done enough capacity building for the MFI sector. Last fiscal, the total outstanding to the MFIs was Rs 5,000 crore. This fiscal, this will touch Rs 10,000 crore", Deputy managing director (DMD) of SIDBI Prakash Kumar said. Kumar told PTI on the sidelines of the Eastern India Microfinance Summit here that the the DFI expects this outstanding amount to rise 40 per cent during the next financial year. He said to gauge the impact assessment of the MFIs in the society, SIDBI has commissioned a study which is being conducted jointly by the self-regulatory body Sa-Dhan and Indira Gandhi Institute of
State Bank of India (SBI) managing director Alok Kumar Choudhary on Wednesday said there is a need for micro finance institutions (MFIs) to pay attention to data privacy and cyber security as they deal with data of a large number of customers. Speaking at a conference organised by Sa-Dhan, he said, MFIs should also focus on capacity building to deal with the challenges of the future. "The second thing which is very important is the integration with the evolving regulation particularly when you have data privacy law. The enormous amount of data which has been handled by all the MFIs, this particular aspect (data privacy) requires attention and some kind of action plan needs to be in place," he said. Financial institutions need to focus on improving ease of transaction through digital means, he said, adding, the need of the customers in the changing time has to be addressed as per their convenience and ease. "For this segment of (bottom of the pyramid) customers, we need to understan
Non-bank lender Aye Finance on Thursday said it is aiming for a 70 per cent jump in its FY24 borrowing at Rs 3,400 crore as against the Rs 2,000 crore done in FY23. The company which focuses on lending to micro enterprises has already raised Rs 2,100 crore of debt till now, and is confident of achieving the overall target for the ongoing fiscal, as per an official statement. It has made the borrowings which are deployed for onlending - from global and Indian banks and financial institutions, the statement said. Its chief financial officer Krishan Gopal said the lenders to the company have got comfort and confidence because of its repayments record, and have extended multiple lines. The company, which counts on CapitalG, Elevevation Capital, Lightrock, Alpha Wave, A91 Partners and MAJ Invest as equity investors, and HDFC Bank, SBI, Nabkissan, DCB Bank, FMO, Blue Orchard and Triodos among lenders, focuses on new to credit micro enterprises looking for small ticket loans but not havi