Mfis

Microfinance growth to nosedive to 4% in FY25, says CareEdge Ratings

Lenders slam brakes on disbursals amid rising stress

NBFC-MFIs' asset growth to moderate at 5% in FY25 on stricter norms: ICRA

Stricter lending norms adopted in face of slew of concerns will restrict asset growth OF NBFC-MFIs to 5 per cent in FY25, a report by Icra said on Thursday. Icra has assigned a negative outlook on the sector, given the significant near-term headwinds on growth, asset quality and profitability. The last two years had seen a robust expansion in assets under management for non-banking finance companies-microfinance institutions (NBFC-MFIs) but the same is set to moderate to 0-5 per cent in FY25, the report said. The agency attributed the fall in growth to challenges stemming from borrower over-leveraging, socio-political disruptions, and employee attrition-led operational challenges. The sharp increase in the overall overdue book in H1 FY2025 also poses a significant downside risks to the near-term loan quality of the sector, it said. The credit costs will increase to 5.4-5.6 per cent from 2.2 per cent in FY24 for NBFC-MFI entities, the agency said, adding that this, along with a ..

Microfinance lending jumps 10% to Rs 40,840 crore in Uttar Pradesh

Microfinance institutions lent Rs 7,584 crore in the previous quarter (July-September 2024) in the state

BFSI Summit: Stress at MFIs to recalibrate in a few months, say NBFC CEOs

The MFI sector has been facing significant challenges over the past five to six months, leading to a notable decline in asset quality

BFSI Summit: Industry experts discuss future growth paths for NBFCs, MFIs

Business Standard BFSI Insight Summit 2024: Industry experts share insights into reach, regulatory pressures, growth opportunities for non-banking financial companies, microfinance institutions

Bumps on MFI road: Microfinance biz turns cautious as delinquencies rise

Business correspondents have helped deepen banking penetration in the nearly two decades they have been around. Can they play a role on the field for MFIs?

Credit costs of MFIs likely to go up to 3-3.5% in FY25: CRISIL Ratings

The asset quality of the microfinance portfolio deteriorated in Q1 FY25 as the heatwave across the country adversely impacted the income of borrowers and collections

Commercial banks turn cautious on lending to smaller microfinance players

Lenders wary after recent RBI guidelines on higher risk weighting for unsecured loans

India Ratings lowers MFI sector outlook to 'neutral' from 'improving'

Flagging caution on overleveraging, the rating agency revised the outlook on the microfinance sector to 'neutral' from 'improving'

'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

Lenders need to scale-up systems to expand 'Lakhpati Didi' scheme

While working within a group, social influence helps in maintaining discipline for staying on course for repayments

No of MFI loans extended by lenders dips in Q2, average ticket sizes grow

The number of microfinance loans extended by all lenders declined in the September quarter, but an increase in the average ticket sizes helped in the quantum of lending to grow, a report said on Tuesday. The industry's self-regulatory body Microfinance Industry Network (MFIN) said the overall loan portfolio grew to Rs 3,76,110 crore at the end of September, up from Rs 3,55,977 crore in the previous quarter and Rs 3,00,974 crore in the year-ago period. The financiers made loans of Rs 76,054 crore in the September quarter as compared to Rs 71,916 crore in the year-ago period, but the number of loans declined to 1.69 crore from 1.81 crore. The average loan size increased to Rs 45,124 at the end of September as against Rs 39,725 in the year-ago period, and Rs 43,298 in the quarter-ago period, the report said. MFIN's chief executive and director Alok Misra said the industry added 1.9 crore unique borrowers in the first six months of the new fiscal, helping the wider agenda of financial

NBFC-MFIs the largest provider of microfinance in India: MFIN Report

Microfinance Industry Network (MFIN), an umbrella body of microfinance institutions (MFIs) of the country, in its report said that NBFC-MFIs are the largest provider of micro-credit amongst other regulated entities. In a report of the MFI sector prepared by MFIN for the year 2022-23, it said that in the microfinance space, NBFC-MFIs provided finance with loan outstanding of Rs 1,38,310 crore as on March 31, 2023, accounting for 39.7 per cent of total industry portfolio. Banks, on the other hand, hold the second largest share of portfolio of micro-credit with total outstanding of Rs 1,19,133 crore, comprising 34.2 per cent of the total in the microfinance space. Small finance banks (SFBs) have a total outstanding of Rs 57,828 crore with a total share of 16.6 per cent, the report said. At the end of the last financial year, the total MFI portfolio stood at Rs 3,48,339 crore. According to the report, the MFI sector has immense growth potential with the market size estimated by MFIN t

India's microfinance sector will continue to thrive, get bigger

It is important to appreciate the virtues displayed by stakeholders towards the vision of empowering low-income households

Fusion Microfinance to enter Andhra, Telangana, open up to 30 branches

MFI plans to open 150 branches across the network across the country in the current financial year

TMS Ep459: Electric two-wheelers, Gurugram realty, MFI stocks, WhatsApp

Can E2Ws survive without subsidies in India? Is Gurgaon the hottest property market? What's fueling the rally in microfinance stocks? How can you silence spam calls on WhatsApp? All answers here

Gross micro loans portfolio grows 20% in December quarter: Report

The gross micro loans portfolio grew 20 per cent to Rs 3.16 lakh crore in the quarter ended December 2022 as compared to the year-ago period, a report said on Friday. The gross loan portfolio growth came at 5.5 per cent when compared to the September quarter, according to the report by credit information company Crif Microlend. Delinquencies of advances overdue for over 90 days by value declined 1.7 per cent while as a percentage of overall advances, it was at 2 per cent at the end of December 2022 as against 2.7 per cent in the year-ago period. The coronavirus pandemic had impacted the microfinance sector as field agents were unable to visit borrowers to extend loans and also ensure timely repayments. The report said that non-bank finance companies continue to dominate the market with a 35.7 per cent share, followed by banks at 33.5 per cent and small finance banks at 16.9 per cent.

MFIs' net profit more than doubles in Q3 on buoyant interest income

The interest income expanded by 25% YoY to Rs 2,414 crore and sequentially, it rose 9.7% from Rs 2,201 crore in Q2FY23

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

Having more than one SRO is good for business: Sa-dhan CEO Jiji Mammen

'Multiple SROs mean a greater number of watchful eyes'