Microfinance

India’s oldest Microfinance NBFC – Basix facing collapse ?

Started in 1997 by Vijay Mahajan, Bhartiya Samruddhi Finance Ltd (BSFL)  is India’s oldest NBFC-MFI. It is now collapsing under the burden of bad loans in Andhra Pradesh where borrowers have refused to repay their micro loans.

Unless the company manages to get fresh funds, BSFL’s bad loans are growing and threaten to wipe out its entire net worth and reserves in the coming months. Vijay Mahajan speaks to Tamal Bandyopadhyay on the issues facing his company and his life’s work.

Livemint has a summary of the Interview here and the full interview follows in the video below:

Duration : 10 Minutes

Basix and the burden of bad loans

basix microfinance

3 Comments

3 Comments

  1. B. Yerram Raju

    July 28, 2011 at 9:46 am

    Nobody would have been more competent finance professional than Vijay Mahajan in the MFI sector and he should have smelt the rat way ahead of others and the statement now is belated as efforts to stall such event should have commenced a year earlier.

  2. chandan mandal

    July 30, 2011 at 4:56 pm

    i wanted to know sunmarg welfair society in west bengal there suraha micro finance company about this

  3. BIPIN KUMAR

    October 1, 2011 at 2:06 pm

    I am surprise to see the institution like BASIX-BSFL in deep trouble of funds availability.
    Entrepreneur like Vijay Mahajan sir and his great team has articulated Micro finance
    beautifully particularly in South India but failed to manage the Politics of opportunist
    and also will say that most of the big honchos in this sector appeared with the value
    of social up liftment but then get into the business of PROFIT and thus the exploitation
    of the borrower started which ultimately resulted in the Political interference for their
    interest to be safeguarded.

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