In an exclusive interview with India Today.Vikram Akula reveals all : Extracts follow below
Q. How does the Andhra Pradesh ordinance on micro finance impact your business?
A. It has disrupted our work over the last few weeks, but we are in dialogue with the government and are confident we will be able to restart our microfinance activities soon.
Q. Why do you think this ordinance was promulgated?
A. One reason is that some rogue financiers have been established and are using unethical practices. In some cases, these are traditional loan sharks who have simply called themselves microfinance institutions. But they don’t practice ethical lending in the way NBFCs registered with the Reserve Bank of India do. Read more on India Today
Fate of SKS Microfinance loans still hangs in balance
Going by sources, the unrecovered loans are anywhere between Rs50 crore and Rs75 crore. The fate of these loans is unclear as the borrowers were never against repaying and it was the company that did not send its agents out into the market due to the ordinance promulgated by the state government to check microfinance institutions (MFIs). Read more on Mint
Microfinance in India : Discredited
THIS was meant to be the year when Indian microfinance came of age, thanks to the listing in August of SKS, the country’s biggest microfinance institution (MFI). Optimists hoped that an infusion of private capital would spur even greater growth in credit to India’s rural poor, nearly 27m of whom are already microfinance clients.
Two months and a messy collision with the realities of local politics later, Indian MFIs are reduced to talking about something more basic: survival.Read more on Economist