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Micro Finance

Micro-credit disbursements decline 35.8% in Q3 of current fiscal: MFIN

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

Updated On: 26 Feb 2025 | 2:49 PM IST

NBFCs top growth rate in micro-finance at 27.6% Y-o-Y by Sept-end FY25

The portfolio-at-risk 31-180 days-past-due has shown a deterioration across all entity types

Updated On: 13 Dec 2024 | 2:57 PM IST

RBI action on 4 NBFCs: Microfinance SRO makes a pitch for 4% cap on RoA

Issues advisory for reviewing pricing policy

Updated On: 22 Oct 2024 | 11:59 PM IST

Microloan asset quality faces strain as heatwaves, loan waiver rumours bite

Asset portfolio shrinks sequentially; growth seen moderating by 2-3 percentage points in FY25

Updated On: 28 Aug 2024 | 1:22 AM IST

Avoid extra loans to borrowers with over Rs 200,000 MFI exposure

The enhanced guidelines must be issued to lending institutions to protect the interests of the microfinance sector and specifically its clients

Updated On: 25 Jul 2024 | 7:35 PM IST

'Sidbi's outstanding to MFI sector to touch Rs 10,000 cr this fiscal'

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

Updated On: 22 Feb 2024 | 4:20 PM IST

Spandana Sphoorty Financial eyes AUM to grow to Rs 28,000 cr by FY28-end

As for geographic diversification, Spandana plans to reduce the share of the top three states to 36 per cent by FY28 from the current 44 per cent. The share of any one state would be capped at 12 %

Updated On: 12 Dec 2023 | 9:34 PM IST

MFIs need to focus on data privacy, cyber security: SBI MD Choudhary

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

Updated On: 08 Nov 2023 | 4:35 PM IST

Aye Finance eyes 70% increase in FY24 borrowing at Rs 3,400 crore

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

Updated On: 12 Oct 2023 | 8:32 PM IST

NBFC-MFI disbursements increase 45.8% to Rs 30,398 crore in Q1FY24

Assets Under Management (AUM) grew to Rs 1,26,053 crore in June 2023 from Rs 89,005 crore a year ago and Rs 1,21,326 crore as of end-March 2023

Updated On: 11 Sep 2023 | 7:35 PM IST

An innovative approach to domestic staff loans

This system could convert 15 crore households into social venture capitalists, offering Rs. 75,000 crore worth of microloans to staff, and integrating the latter into formal lending

Updated On: 18 Jun 2023 | 8:16 PM IST

Fusion Microfinance sees asset growth moderating as pent-up demand tapers

Expects to NIMs to improve to 11.3-11.5% from 10.3%

Updated On: 12 Feb 2023 | 6:54 PM IST

Manappuram Finance plans to rope in private equity player for MFI unit

Manappuram holds about 98 per cent stake in Micro finance subsidiary

Updated On: 10 Feb 2023 | 12:02 AM IST

SIDBI identifies MFIs to provide enhanced support for micro-lending

Speaking at Business Standard's BFSI Summit, Ramann added that the state-owned small industries lender said that it is once again looking at how to bring capital to micro finance institutions

Updated On: 21 Dec 2022 | 11:36 PM IST

NBFC-MFIs overtake commercial banks in micro loan market share in Q2

One reason for this shift in trend could be that banks faced challenges in managing this asset class, especially after the outbreak of the Covid-19 pandemic and the resultant lockdowns

Updated On: 16 Dec 2022 | 11:05 PM IST

Quick commerce finds it footing amid funding winter, now needs to scale

The sector has fared well both on the fund raising front and on operational performance

Updated On: 16 Dec 2022 | 10:08 PM IST

MFI recovery, credit cost moderation key triggers for Bandhan Bank

Stock has sharply underperformed peers and is available at reasonable levels

Updated On: 02 Dec 2022 | 11:29 PM IST

Can financial services be made bite-sized to deepen credit penetration?

Small can be more beautiful: Large-scale sachetisation of financial services may be just around the corner

Updated On: 25 Sep 2022 | 7:31 PM IST

Microfinance disbursements slowed in Q1 FY23 after new regulations: MFIN

Lenders needed time to make policy changes after norms were updated in March 2022, says industry group

Updated On: 22 Sep 2022 | 6:51 PM IST

Annapurna Fin eyes Rs 8,500 cr in assets by March 23; mulls SME credit arm

Gets $15 mn in equity from French investors, total fundraise reaches $100 mn

Updated On: 24 Jun 2022 | 6:11 PM IST