Microfinance News Digest

MFI’s in India to get Rs 1000 Crore loans from YES Bank – News Digest

Yes Bank to increase lending to Microfinance Sector in India
Private sector lender, YES Bank, is planning a threefold increase in lending to the microfinance sector. In January, MFIs had accused YES Bank of “recalling” loans amounting to a few hundred crore, citing the crisis in the sector and the resultant default by MFI borrowers. BS

Yes bank

Can’t override powers of states on MFIs: RBI
Though the finance ministry proposes to make the Reserve Bank of India (RBI) the sole regulator for the country’s troubled micro finance institutions (MFIs), the central bank has said this will not override the decisions of state governments.BS

‘Only negotiations with borrowers will help MFIs recover loans in AP’
Can the draft MFI legislation, if enacted by the Parliament, help mircrofinance institutions (MFIs) recover the Rs 7,200-crore money that got stuck with the poor borrowers in Andhra Pradesh (AP) after the state enforced a regulation on their activities? The answer is a big no, according to the state government authorities. BS

Share Microfin investors uneasy with loan recast
Fear the provision allowing banks to convert pending debt into equity may dilute their stake The debt restructuring package for microfinance institutions (MFIs) has alarmed investors of Share Microfin, a Hyderabad-based micro lender with significant exposure in the debt recast programme. These investors fear the restructuring programme would lead to sizeable dilution in their shareholding, sources said. BS

A phone line to blow the whistle
Manappuram Finance Limited (MFL) has introduced a help line that allows customers, vendors, employees and investors to blow the whistle. BS

IFC to invest $ 2 mn in ATM maker Vortex Engineering
The International Finance Corporation (IFC) plans to make a minority equity investment of up to $2 million in Chennai-based Vortex Engineering Private Limited, an ATM manufacturer. BS

Rural India To Drive Future Growth: Blackstone’s Akhil Gupta
Private equity major Blackstone Group, which invested over $1 billion in India over the last five years, has recently announced its smallest transaction (after $39.5 million in CMS Computers in 2009) in the country since opening its office here in 2005.VCC

Blackstone Acquires Fino Stake for $34 Million
Blackstone Advisors India Pvt. Ltd has bought a stake in Financial Information & Network Operations Ltd. for 1.5 billion rupees ($33.8 million), betting that the country will persist with its drive to ensure more of the population has bank accounts. WSJ

Major role of technology in financial inclusion
Of the 6.9 billion people on the planet, just 30 per cent (2.1 billion) have bank accounts while 75 per cent — 5.2 billion people — have mobile phones. “ In India, only 200 million people have access to a bank account while 811 million have a mobile phone. For a population of 1.2 billion people, this translates into 68 per cent having a mobile phone and only 17 per cent having a bank account. Hindu

To Top