MFIs, small banks will need external capital of Rs 4,700 cr in three years

Small finance banks and finance companies working as micro finance institutions will need external capital of upto to Rs 4,700 crore over the next three years to support over 25-30 per cent growth in loan books, according to ICRA.

Investors continued to support the industry with equity infusion of around Rs 4,350 crore in FY2019. The players had raised Rs 4,100 crore in FY2018. 

Rating agency ICRA in its outlook for the microfinance sector said that more than 90 per cent of the capital raised in FY2019 was by the MFIs with AUMs of greater than Rs 1,000 crore. This