Microfinance institutions (MFIs) operating in Andhra Pradesh are said to be preparing to showcase a feel good state of affairs for the Reserve Bank of India (RBI) delegation that is expected to visit the state mid-month to take stock of the situation on microfinance related excesses. Read more on DNA
MFIs ready to reschedule repayment period
Microfinance Institutions (MFIs) in Andhra Pradesh are mulling to extend the period of repayment by their borrowers by 2-3 times depending on the quantum of amount lent.
This means that if the loan repayment period was originally fixed as one year, now it could be two or three years depending on the amount lent and the earning capacity of borrowers. Read the rest on Business Standard
TDP chief slammed for exacerbating MFI problems
It is irresponsible for a former Chief Minister, who was an icon for attracting foreign direct investment and who brought Andhra Pradesh into the modern era of IT, to go from district to district to say that microfinance institutions’ loans should not be repaid,” said Mr Vijay Mahajan, Chairman, Basix India. Read more on Hindu Business Line
PSU banks plan MFI loan conversion into equity
Public sector lenders have come out with a proposal to salvage troubled microfinance industries (MFIs) —conversion of loans into equity in the company in case of any default. State-run Corporation Bank is the first bank which has come with the idea to safeguard its risk through this route.
Other lenders like State Bank of India, Bank of India, Indian Overseas Bank, Punjab National Bank and SIDBI — which have maximum exposure in the sector — are also said to be toying with this idea, said a banking source. Read the rest on Indian Express