Microfinance industry eyes 11 crore borrowers by 2014
The Indian micro finance industry (MFI) would cross 11 crore borrowers and Rs 135,000 crore ($30 billion) in loan portfolio by 2014 and will require a huge capital inflow both in debt and equity, according to a latest report by Intellecap.
The report said that the growth is expected to come from underserved states that are witnessing a flurry of activity, and also from a range of new financial and non-financial products that are being introduced in the sector.Financial Chronicle
Cibil rural borrowers’ database to help Microfinance Institutions in India
Credit Information Bureau (India) Ltd, a repository of credit information, is preparing the database of rural commercial and consumer borrowers to cater to the growing demand of microfinance institutions.
The database is aimed at providing information mainly about multiple lending to rural consumer borrowers. According to industry estimates, MFIs in the country have managed to provide finance to over 2.2 crore poor rural households. While the total outstanding MFIs in the country is around Rs 30,000 crore, defaults are in the range of 1-1.5%. Financial Express
Vikram Akula : Private Equity Good For Microfinance
India’s biggest and fastest-growing microfinance institution, will soon become the first microfinance company to list on the Bombay Stock Exchange.
The Sun, a Malaysian daily, ran a column recently that cogitated over SKS’s phenomenal growth. “Not only does SKS’s impending IPO spotlight India’s rapidly expanding microfinance industry, it also revives the debate about how MFIs should be funded. Traditionally, MFIs finance their lending through donations or deposits from borrowers. A more controversial, though increasingly popular, option is private equity funding.”
Sequoia Capital, Vinod Khosla and Unitus, a Seattle-based fund were among the early-stage SKS investors. Wall Street Journal
RBI asks banks to put in place UID-compatible financial plans:
Reserve Bank of India (RBI) has asked all the domestic commercial banks to draw up a financial inclusion plan, duly approved by the bank’s board for rolling out in the next three years. RBI has specifically mentioned that the technology solutions adopted by the banks should be unique identity project (UID) compatible – Financial Express
Bengaluru may host 40% of PE investments
Bengaluru is expected to host 40 per cent of the private equity investment into technology ventures in India in the next five years.Around $7.5 billion is expected to come into India in the technology space by way of PE investment of which Bengaluru could net $3 billion.
This is expected to happen on the back of a growing number of entrepreneurs in the city looking to start their own ventures.Sudhir Sethi, managing director, IDG Ventures, said overall, PE investment into India is likely to touch $75 billion for the period 2010-15 as compared to $ 40 billion for 2004-09.
Technology, healthcare and manufacturing are expecting to be the leading sectors for PE investment during this period. “We see the emergence of more serial entrepreneurs in recent times since they already have the base,” said Sethi. Rediff.com
Narayana Murthy on Infosys, politics, and his son
fosys chairman and chief mentor N R Narayana Murthy shows no signs of tiring. Indeed, while most people expected him to spend a quiet life in retirement on reaching 65 next year in August, his ‘second journey’ with a Rs 600-crore (Rs 6 billion) venture capital fund is going to take off soon. He talks to Business Standard on Infosys’ next stage of development, on the US challenge, on India’s relations with China and, yes, on whether his son would join Infosys.
Will you look at a public role after retirement ?
I was offered a position in 1999 by Atal Bihari Vajpayee, but I was not interested. First, we were taking the company to Nasdaq at that time.
Second, I don’t know whether I can succeed in an environment where people are not disciplined; where people don’t believe in meritocracy; and where people put their own interests above the societal interest. Rediff.com