Private sector lender Yes Bank Ltd has recalled at least Rs.100 crore of loans it advanced to microfinance institutions (MFIs), which have been negotiating with commercial banks for new loans as they battle a crisis of confidence. Yes Bank is the first commercial bank to seek such a loan recall.
On 22 December, Yes Bank wrote to a few MFIs, including Ujjivan Financial Services Pvt. Ltd and Equitas Micro Finance India Pvt. Ltd, to pay back their loans by 31 December, according to three persons familiar with the development. Read the rest on Mint
Mexican Microfinance Lender Banco Compartamos appeals to Indian Regulators
Banco Compartamos, the Mexican microfinance lender, has warned Andhra Pradesh policy wonks to resist from putting cap on microlending rates as such a step would force more people to go to the money lenders and prevent poor in the villages from accessing credit.
The world’s first listed microfinance company — Compartamos (which means let’s share in Spanish) has over 50% share of Mexico’s microfinance sector — suggests that India should build stronger credit bureaus that keep a check on the number of microfinance institutions. Read the rest on DNA