'Bank has a robust capital adequacy base. Along with balance sheet preparation, the bank is focusing on strengthening risk management for the new regime.'
'The campaign by the Mahagathbandan has failed to capture the imagination of the electorate given the fatigue factor with the Nitish government.'
The year 2010 was a tumultuous one for micro-finance institutions (MFIs) in India.
The Andhra ordinance and SKS IPO have abruptly changed the industry's prospects
The Micro Finance Institutions (Development and Regulation) Bill, 2012, is currently being scrutinised by a Parliamentary Standing Committee.
The KAS Foundation is touching the lives of 700,000 people.
The plan has received positive feelers from Canara Bank, which, along with others, will together hold 49 per cent. The MFI will be set up with a capital of Rs 100 crore (Rs 1 billion).
The maiden Test ton celebration in Salaar style was a tribute to his father Mutyala, who watched his son rescue India from the stand behind team's dug-out.
The government has released the draft Micro Financial Sector (Development and Regulation) Bill, 2011, which seeks to make it mandatory for all microfinance institutions to be registered with the Reserve Bank of India, making it the sector regulator.
Any initiative backed by a political institution and intention, would not achieve the desired result of serving the common man. The pre-condition of success is its management by a private entity with ownership shared between the promoters and the common people.
'Have a long way to go even as a small finance bank, both in terms of size, and in terms of fulfilling our aspirations for financial inclusion.'
Investors shunned shares of Bajaj Finance on Friday, a day after the non-banking financial company (NBFC) reported a sharp contraction in its net interest margin (NIM) for the March quarter of the financial year 2023-24 (Q4FY24). The losses accounted for a fifth of the benchmark S&P BSE Sensex's 609-point loss. Most brokerages have tamed their earnings expectations for the next couple of quarters, after the management said it expected the pressure on NIMs to continue in the near term.
A rural women's university is pioneering an effort to teach microfinance through practical lessons in the villages of Sonepat.
Gold prices hit record high in the third week of March as fears of bank collapses and high inflation led investors to the traditional safe haven. Gold prices are often inversely correlated to dollar strength because the international price is dollar-denominated. The Federal Reserve's (Fed's) stance indicates that the dollar may appreciate further since it is prepared to keep pushing up policy rates. But demand for gold is also up - the World Gold Council claims central banks are buying in addition to private demand.
'We need to be far more careful given the fact that while this is group lending, it's essentially unsecured.'
The Reserve Bank of India's (RBI's) latest order on unsecured loans is set to hit the banking sector's growth in the near-term, cautioned analysts, as they see banks slowing down on aggressive retail lending. Besides, cost of funds for non-banking finance companies (NBFC) is expected to inch up as banks will pass on higher capital charge to NBFCs. "We believe the fallout of the RBI action will be mainly on growth, given the rising dependence on unsecured retail loans and lending to NBFCs for growth.
Notwithstanding the risk involved, analysts are upbeat on micro-cap investing as India remains in a firm bull market. Moreover, these stocks are available at relatively cheaper valuations compared to large, mid and small caps, assuring alpha returns. With a market-capitalisation (market-cap) of up to Rs 10,000 crore, micro-cap stocks are outside the purview of Nifty 500 stocks, and are ranked from 501 to 750 in the market-cap ladder.
Banks enjoyed an expansion in Net Interest Margins (or NIMs) as well as in credit demand through the 2022-23 financial year (FY23). The credit expansion was because economic growth continued to recover from the Covid-19 years, and indeed, second half GDP growth surprised on the upside. The NIM expansion was because banks raised lending rates immediately (in many cases automatically due to floaters) as the Reserve Bank of India (RBI) hiked policy rates, and only started raising deposit rates late into the fiscal.
Bandhan Bank has declared disappointing results for the first quarter of the 2023-24 financial year (Q1FY24). While the market has been braced for known issues around microfinance exposures in West Bengal and Assam, there is higher stress in the portfolio. This means higher credit costs and poorer asset quality, leading to target downgrades by analysts.
'An entrepreneur should always remain under pressure or he will die,' Vineet Rai tells Anjuli Bhargava.
Credit Information Bureau India Limited has entered into an agreement with 31 leading micro finance institutions to set up a credit information bureau for MFIs.
The company has started a pilot project on micro-finance in partnership with Grameen Bank of Bangladesh.
Citigroup India on Thursday announced a $3.5 million grant to the Indian School of Micro Finance to be set up in Ahmedabad.
Pranab Mukherjee said the government proposes to move various legislative Bills related to financial sector reforms.
As bank loans to MFIs are mostly unsecured, the Indian Banks Association had requested RBI in December to relax its restructuring guidelines for the MFI sector.
Investors are shying away from securitised loans of micro-finance institutions (MFIs), as the ordinance issued by the Andhra Pradesh government has slowed recoveries, creating uncertainty around the underlying portfolio.
There are allegations that MFIs are charging exorbitant interest rates and using strong-arm tactics to recover the loans.
According to industry estimates more than 70 per cent of motorcycles are bought through financing schemes.
MUDRA Bank will have a corpus of Rs 20,000 crore.
MFIs were allegedly charging interest rates of over 30 per cent.
Besides, two new entities-- IDFC and Bandhan -- have been given full-fledged banking licence.
No capital came in through the approval route, while the rest of $9,86,681 was by way of issuance of rupee denominated bonds.
Reserve Bank of India Deputy Governor M Rajeshwar Rao on Wednesday said while the central bank will foster growth in the microfinance (MFI) sector, the lenders in the space should not throw caution to the wind to achieve higher asset growth and returns. MFIs should not try to mimic the strategies of mainstream finance, as those serving the microfinance borrowers have a greater need to balance the social objectives with their lending operations, he said.
According to NABARD, around 60% of India's population lacks access to financial institutions.
'This micro-finance sector has seen a tremendous upsurge in the recent time. There is a huge potential in this domain'.
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