Microfinance News Digest

Spandana, Share Microfin, Asmita seek RBI nod for merger – News Digest

Microfinance institutions (MFIs) Spandana Spoorty, Share Microfin and Asmita are planning to approach the Reserve Bank of India with a merger proposal.HBL

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L&T on banking licence: 25% rural branches may not be viable
L&T group, a serious contender for a new banking licence, today expressed doubts over the viability of new banks having 25% of their branches in rural areas as prescribed in the RBI draft guidelines. BS

A Conversation With Ela R. Bhatt
Ela Bhatt, a Gandhian and a lawyer who founded the Self Employed Women’s Association in Gujarat, is sometimes referred to as the mother of microfinance. She helped start Mahila Sewa Co-operative Bank in 1974, two years before Muhammad Yunus began the project that would later become Grameen Bank. NYT

Banks will now screen Microfinance institutions’ salary package
The astronomical pay packages of promoters of microfinance institutions (MFIs) will come under intense scrutiny of banks that have extended funds to bail out the sector once touted as the torchbearer of financial inclusion. ET

Banks acquire 60% stake in Trident microfin
Various banks have taken control of Hyderabad-based microfinance firm Trident Microfin by acquiring a majority stake in the firm, leaving promoter and chief executive Kishore Kumar Puli with a stake of only 4.2 per cent. BS

Inefficient microlenderswill be out of the picture
Reddy Subramaniam justified the state’s decision to introduce the law, the idea of floating an apex cooperative society, among other issues. Mint

Defaulters shamed into submission
Banks have started using newspapers and public hoardings to shame debtors into paying up their dues. The shift from recovery agents to creating peer pressure was prompted by an RBI order, which targets defaults exceeding Rs 25 lakh. HBL

Share Microfin inks Rs 1,900-cr debt recast deal
Share Microfin Ltd has signed a Master Restructuring Agreement (MRA) with a consortium of banks for debt recast of Rs 1,900 crore. HBL


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