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Showing posts from May, 2012

Map of Microfinance Distribution in India

Author: Deepti Kc
If you are interested in understanding financial inclusion in India, have you ever wondered about the penetration of financial services in India at state-wide or district-wide level? Have you ever wished to explore this penetration across various demographic and socio-economic strata? If so, Centre for Micro Finance is happy to announce that your wish has come true.

Microfinance Bill- Frequently Asked Questions

Author: Deepti Kc

Union Cabinet has recently cleared the Microfinance Bill and the bill is now introduced in Lok Sabha. If approved, the microfinance bill will take MFIs outside the purview of state-level legislation and make the central bank to regulate the sector. If you are wondering what microfinance bill is and why it matters to the sector and a research institute like Centre for Micro Finance (CMF), I have tried to summarize some of the key features in this blog. (Detailed information: Here)

Saved by the Bill?

Author: Deepti Kc
SKS has shut down branches in Andhra Pradesh and according to Times of India article, “1200 people will lose jobs”- apart from millions of clients losing their credit source. My intention is not to argue on behalf of SKS by writing this post. I still remember SKS founder Mr. Vikram Akula debating with Prof. Yunus right before AP crisis in September 2010 by stating, “I see Yunus as a mentor and, like Grameen Bank, SKS gives microcredit for income-generating activity, collateral free.… [The question is] how do you design microfinance in a way so you don’t say no [to anyone who needs it]? You do it by accessing capital markets and yes, commercial microfinance is an important tool for inclusive access.” The same Mr. Akula after stepping down from SKS stated in March 2012 “Professor Yunus was right….bringing private capital into social enterprise was much harder than I anticipated……. The mistakes I’ve made can help the rest of you.”  Thus, in my opinion (and …

Funding to the microfinance sector: Review of options

Guest Article by : Jayshree Venkatesan, CEO, IFMR Mezzanine and Vineet Sukumar, Head, Treasury and Origination, IFMR Capital

Background


The Indian microfinance sector has seen a series of rapid changes in the past decade. The sector grew rapidly in the period 2004-2009, with an average increase in number of clients year-on-year being 91%, while size of portfolio outstanding grew by almost 100% Y-o-Y[1]. During the same period, one also saw a number of Non-Banking Finance Companies (NBFCs) being established with a corresponding spike in interest from private equity investors. For instance, between 2007 and 2009 alone, the number of systemically important NBFCs, i.e., those with a balance sheet size greater than INR 100 crores (USD 20 mn)[2], grew from 7 to 25. Much of this growth can be attributed to increase in the number and quantum of equity investments during the same period. In FY 2009-10 alone, a total of 17 deals were closed, valued at INR 8.67 billion[3] (USD 173.4 m…