Microfinance industry may come up with Rs 8-bn pool of saleable securities

The pool will be bundled with a mix of small and big MFI portfolios across geographies, will be credit rated and sold to banks

To tide over liquidity squeeze, the microfinance industry is expected to come up with a Rs 8-billion pool of saleable securities by the first week of December. This is for the first time that the microfinance industry is coming up with a common pool.

According to a senior official in the MicroFinance Institutions Network (MFIN), the representative body of microfinance institutions, the initial size of the pool was estimated at around Rs 5 billion. However, given good participation from small and large MFIs, the size of the pool is expected to be around Rs 8 billion.

The pool will be bundled with