Microfinance News Digest

Indian Microfinance Bill hits Rural Ministry roadblock – News Digest

Microfinance Bill hits roadblock
The Union Ministry of Rural Development has raised objections to some of the key proposals mentioned in the draft Bill which was released in July in the wake of crisis in Andhra Pradesh. HBL

Chill Bill – Parliament’s Winter Session
There are a number of draft bills in the public domain, yet the winter session of the Parliament does not hold much promise.FB

ministry for rural development

Growth slows, followed by the decline
The 2010 crisis in Andhra Pradesh (AP) halted the rapid expansion of the Indian microfinance market, causing a high concentration of microfinance institutions in AP to become unsustainable. For the first time, MIX presents data on over 90 Indian MFIs to understand the impact of the crisis on the market. Read more: MIX 

Andhra to launch interest-free loans in a blow to MFIs
Lines up outlay of Rs 1,400 cr from next financial year. FC

Orissa finance minister takes a dig at MFI’s
Orissa finance minister Prafulla Chandra Ghadai on Tuesday took a dig at the micro finance institutions (MFIs) and said, though these institutions had started as a NGO initiative, they have now turned into money making machines. BS

With bastion in AP crumbling, MFIs turn to other states
While south India has been the bastion of MFIs, the north is still a tough terrain. But with the microfinance business coming to a standstill in Andhra Pradesh, their primary market, following the enactment of the MFI Act, the MFIs have begun focusing on northern states. BS

Lords of poverty struggle to survive : Microfinance institutions face tough times
Just a few years ago, Microfinance institutions were the lords of poverty, imperiously ruling over a new goldmine unearthed in corporate India, this one lying at the bottom of the pyramid. BS

BEAM enters Hyderabad market
BEAM, a Delhi-based cashless mobile financial transaction services provider, on Friday forayed into the Hyderabad market, with plans to expand its presence to all the districts of Andhra Pradesh by March 2012. BS

Newsmaker: Vikram Akula
King of poverty relinquishes throne. BS

Non-banking entities handle bad loans better
Non-banking financial companies (NBFCs) have seen a significant improvement in handling of assets, even in the high interest-rate regime, according to the quarterly results’ numbers. BS

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