Crisil planning to revise outlook and rating on micro-fin firms
Rating agency Crisil on Monday said it was assessing the recent developments in the micro finance space and its possible impact on MFIs. Any changes in rating or outlook, if any, will be announced shortly, the rating agency said in a statement.
Crisil has outstanding ratings on 12 MFIs including SKS Microfinance Limited, Spandana Sphoorty Financial Limited, and has rated 9 securitisation transactions originated by MFIs. Read the rest on Financial Express
On Day 1, MFIs struggle to make recoveries
Almost two weeks after the Andhra Pradesh government issued an ordinance to rein in erring microfinance institutions (MFIs) operating in the state, they are slowly getting back into business.
MFIs had stopped recovery after the state government issued the Andhra Pradesh Microfinance Institutions (Regulation of Money Lending) Ordinance, 2010, on October 15. The ordinance insists on MFIs getting registered with district rural development agencies, apart from imposing a three-year imprisonment and/or Rs 1,00,000 fine on MFIs that harass borrowers. Read the rest on Sify
CDC to invest $10 mn in Indian microfinance funds
At a time when the microfinance industry is in the limelight, CDC, the UK government’s development private investment arm, and the parent company of Actis, has committed another $10 million investment in microfinance funds, taking its total investment up to $120 million in Indian microfinance funds.
CDC, which acts as a fund of funds and has been created to invest through fund managers in poor and emerging countries, will be an anchor investor in the fund Lok Capital II. Read the rest on Economic Times