Intellecap, a social-sector advisory firm with offices in India and the US, has released the third edition “Inverting the Pyramid,” its annual publication about the Indian microfinance sector. The third edition, titled “Indian Microfinance – Coming of Age,” explores the reasons for the “buzz surrounding the sector” and a variety of other questions including: “is there a bubble growing in Indian microfinance?; are the social aims of microfinance losing out to commercial interests?; are Indian MFI valuations too high?” [1]
Category: South Asia, East Asia and Pacific
MICROCAPITAL BRIEF: Pakistan Microfinance Network, UK Department for International Development (DFID), Citi Foundation, State Bank of Pakistan Launch Microfinance Credit Information Bureau
Pakistan?s Microfinance Credit Information Bureau (MF-CIB) has been launched as a joint venture by the Pakistan Microfinance Network, the UK Department for International Development (DFID), the Citi Foundation and the State Bank of Pakistan.
MICROCAPITAL BRIEF: Daiwa Securities Group to Issue Bonds in Japanese Market to Support Operations of European Bank for Reconstruction and Development (EBRD)
Daiwa Securities Group, a Japanese securities broker reporting JPY 17.1 trillion (USD 186 billion) in assets as of March 2010, will be issuing bonds to Japanese retail and institutional investors to support the operations of the European Bank for Reconstruction and Development (EBRD), an international developmental finance institution focusing on Eastern Europe and Central Asia and headquartered in London [1].
MICROCAPITAL BRIEF: The United Nations’ Pacific Financial Inclusion Program (PFIP) Releases “Fiji Financial Services Sector Assessment” Calling for Expansion of Microfinance Sector, Especially Through the Development of Accessible Savings Services
The United Nations’ Pacific Financial Inclusion Program (PFIP) has recently released the report “Fiji Financial Services Sector Assessment.” According to the report, About 109,000 households in Fiji do not have access to savings, credit or other financial services [1]. The report highlights that, although the nation has a well-developed financial sector, it primarily caters to the affluent and salaried urban population, and there are missed opportunities for the financial inclusion of more Fiji Islanders, particularly considering Fiji’s favorable infrastructure.
MICROCAPITAL BRIEF: Kerala and Andhra Pradesh, Two States in Southern India, Mandate Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs) To Register Under Local Money Lending Laws; Mandate Challenged in Supreme Court
Kerala and Andhra Pradesh, two states in southern India, have mandated that non-banking financial companies (NBFCs) and microfinance institutions (MFIs) register under local moneylending laws, but The Shriram Transport Finance Company (STFC), an NFBC in India, has challenged this mandate in Supreme Court [1].
MICROCAPITAL BRIEF: Elevar and SVB make USD 8.6m Equity Investment In Indian Microfinance Institution Vistaar Livelihood Finance
Elevar Equity Advisors and SVB India Capital Partners have teamed to make an INR 400 million (USD 8.64 million) equity investment in Vistaar Livelihood Finance, an Indian microfinance institution catering to non-agricultural female entrepreneurs. While their stake in Vistaar was not disclosed, Brahmanand Hegde, CEO of Vistaar, stated that the two companies had bought a “substantial minority” in the company.
MICROCAPITAL BRIEF: Vastushodh Projects Private Limited Pairs with Micro Housing Finance Corporation (MHFC) to Set Up Housing for Urban Poor in India
Vastushodh Projects Private Limited, a real estate development company in India, is pairing up with The Micro Housing Finance Corporation (MHFC) to provide housing for the urban poor. MHFC has total funds of INR 22.5 million (USD 483,000) and total share capital INR 22 million (USD 473,000) as of March 2009 [1]. The organizations are setting up a micro township located in Yevat, a village in the Pune district of Maharashtra, located in southwestern India.
MICROCAPITAL BRIEF: Asian Development Bank (ADB) Provides $3m Grant to Small Industries Development Bank of India for Women Who Have Outgrown Microfinance, Are Caught in the “Missing Middle”
The Asian Development Bank (ADB), a regional development bank headquartered in Manila, the Philippines, which in 2007 approved USD 10.1 billion in loans [1], is providing a USD 3 million grant to the Small Industries Development Bank of India (SIDBI) to offer services to female entrepreneurs in India. The grant will target women who have “outgrown traditional microfinance support, but who are unable to access more conventional bank financing – the so called ‘missing middle’ group of the small enterprise sector” [3].
MICROCAPITAL BRIEF: World Bank Approves $200m Loan to Small Industries Development Bank of India (SIDBI) For Microfinance Institutions (MFIs) in India
The World Bank’s Board of Executive Directors has approved a loan of USD 200 million to be given to the Small Industries Development Bank of India (SIDBI) for lending to microfinance institutions (MFIs) in India.
MICROCAPITAL BRIEF: President of Indonesia, Susilo Bambang Yudhoyono, Signs Agreement to Provide Microcredit to Indonesian Workers in Malaysia
The President of Indonesia, Susilo Bambang Yudhoyono, has signed an agreement that will support Indonesian workers who have migrated to Malaysia for work.
MICROCAPITAL BRIEF: State Bank of Pakistan Eases Requirements on Microfinance Institutions (MFIs)
The State Bank of Pakistan (SBP) has eased requirements on the cash reserve requirement (CRR) of microfinance institutions (MFIs), exempting deposits of one year and longer. Also, time liabilities of one year and longer have been exempted for the maintenance of the statutory liquidity requirement (SLR). SBP has made these amendments with the intention of encouraging MFIs to seek out long-term deposits and be better able to use their financial resources for onward lending.
MICROCAPITAL BRIEF: Fullerton India Credit Company (FICC) to Add Microfinance Services To Its Repertoire
Fullerton India Credit Company Limited (FICCL), a non-banking finance company (NBFC) in India [1], is adding microfinance services to its repertoire [2]. Its parent company, Angelica Investment Limited, is located in Singapore [2], yet the company chose India as its first market for microfinance because of the country’s large underserved population.
MICROCAPITAL BRIEF: China Development Bank (CDB), a Chinese Lending Institution, Gives Credit to Equity Bank (EB), a Microfinance Institution (MFI) Turned Commercial Bank in Kenya
Equity Bank (EB), a microfinance institution (MFI) turned commercial bank in Kenya [1], has signed a KES 4 billion (USD 50.9 million) [2] loan agreement with the China Development Bank (CDB), a state-owned lending institution which targets national development in China [3].
MICROCAPITAL BRIEF: PlaNet Finance China Reports One Third of Chinese Have No Access to Financial Services
A report released by PlaNet Finance China, a nonprofit acting to promote development of the microfinance sector, suggests that one third of China’s people have no access to financial services [1]. According to population data from the CIA World Factbook, this would total roughly 446 million people, a segment greater than the total population of all but one other nation, India [2].
MICROCAPITAL BRIEF: South Korean Smile Microcredit Bank (SMB) Successfully Lobbies for Regulation Changes and Alters Loan Practices
Smile Microcredit Bank (SMB), the state-run South Korean microfinance bank, announced a comprehensive restructuring of their loan practices following successful advocacy to alter key pieces of government policy. The Financial Services Commission (FSC), South Korea’s financial policy body, reduced the cash holdings equivalent from 50 percent to 30 percent for loans up to KRW 20 million (USD 17,600). It also halved the required time of pre-loan operation from two years to one [1].
MICROFINANCE EVENT: MicroInsurance Summit Asia 2010 Hosted by Hanson Wade August 3 to August 4, 2010
Event Name: MicroInsurance Summit Asia 2010
Event Date: August 3 – August 4, 2010
Event Location: Singapore
Event Website: http://www.hansonwade.com/events/microinsurance-summit-2010-singapore/index.shtml
See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events
Cost: The full cost of the two-day conference is USD 2199, with discounts for registering before June 11th and for nonprofit organizations. Workshops are sold at additional cost. Full pricing information: http://www.hansonwade.com/events/microinsurance-summit-2010-singapore/fees.shtml
MICROCAPITAL BRIEF: SHARE Microfin Ltd of India Raises $11m Through Non-Convertible Debentures (NCD) with Assistance from Standard Chartered
SHARE Microfin Ltd, an Indian microfinance institution (MFI) with 2.4 million clients and a gross loan portfolio of USD 353 million, recently raised INR 500 million (USD 11 million) through a private placement of two-year, non-convertible debentures (NCD).
MICROCAPITAL BRIEF: Andhra Pradesh Government to File Criminal Cases Against Microfinance Institutions (MFIs) Using Coercion
The government of the Indian state of Andhra Pradesh recently announced it would file criminal cases against any microfinance institution (MFIs) found to have used coercion to recover loans.