SKS Microfinance, a for-profit Indian microfinance institution, reported a decline of 36 percent in total income to INR 193.8 crores (USD 42.7 million) and a net loss of INR 69.8 crores (USD 15.4 million) for the first three months of 2011, as compared with a net profit of INR 62.9 crores (USD 14 million) in the same quarter last year. Continue Reading »

Mr Sushil Munhot, chairman and managing director of the government-owned Small Industries Development Bank of India (SIDBI), recently argued in an interview with Indian newspaper The Economic Times that SIDBI complements commercial banks while also offering the added value of providing equity funding to small- and medium-sized enterprises (SMEs). Continue Reading »

The Central Bank of Afghanistan has issued an electronic money institution (EMI) license to M-Paisa, a mobile technology platform that provides financial services targeted at those without access to banking. Continue Reading »

The Reserve Bank of India (RBI), India’s central banking authority, recently announced that it has accepted – with some modifications – the framework of recommendations issued by the Malegam Committee for the country’s microfinance industry. Continue Reading »

Event Name: Lending To The Poor, Insights on Microfinance in Asia

Event Date: May 9, 2011

Event Time: 6:30 pm to 8:00 pm

Event Location: Asia Society Washington, The Cinnabar Room, Whittemore House, 2nd floor, 1526 New Hampshire Ave NW, Washington, DC, USA Continue Reading »

Matrix Partners India, the Indian subsidiary of US-based private equity firm Matrix Partners, recently announced that it raised USD 300 million for its second fund. With the closing of this fund, Matrix Partners India currently has approximately USD 677 million in assets under management. Continue Reading »

A group of lenders, led by Indian commercial bank ICICI Bank, has approved a debt restructuring plan for Spandana Sphoorty Financial Limited, an Indian microfinance institution (MFI). Continue Reading »

By Syed M Hashemi and Aude de Montesquiou; published by CGAP (Consultative Group to Assist the Poor), March 2011, 16 pages; available at: http://www.microfinancegateway.org/gm/document-1.9.50806/Reaching_the_Poorest.pdf Continue Reading »

A recent article in US-based newspaper The Washington Post spotlights the impact that the recent liquidity crunch for microlenders in the Indian state of Andhra Pradesh has had on women, who make up a majority of the microborrowers in the state, in particular as a result of a reemergence of unregulated moneylenders. Continue Reading »

Multiple Indian newspapers have cited an unnamed report on Indian microfinance regulation from global ratings agency Fitch that reportedly states that a single regulatory body is crucial to ensuring a stable Indian microfinance sector and that future legislation affecting microfinance should be developed through cooperative efforts between state and federal authorities. Continue Reading »

Mr Somen Saha, senior lecturer at the Indian Institute of Public Health in the state of Gujarat, and Ms Marcia Metcalfe, director of microfinance and health protection at California-based international development nonprofit Freedom from Hunger, recently co-authored an article that was published on the website of US-based newspaper The Wall Street Journal wherein they argue for the integration of health care with microfinance in India. Continue Reading »

Mr Ganesh Sankaran, executive vice president of India’s HDFC Bank, argues in a recent article on the Hindu Business Line website that the microfinance industry has reached a bifurcation point wherein its stakeholders must navigate it towards achieving either commercial sustainability or poverty alleviation. Continue Reading »

Alan Patricof, Founder and Managing Director of US-based venture capital company Greycroft Partners, argues in a recent issues of Fortune magazine that while microfinance institutions (MFIs) “do play an important role in development, there is an even greater need to support small and medium-sized enterprises (SMEs), which have the greatest potential for job growth in most places around the world” [1]. Continue Reading »

Mercy Corps, a US-based relief and development nonprofit, has announced plans to fund a USD 1 million partnership with BPI Globe BanKO, a savings bank in the Philippines, to expand the uptake of mobile banking services. Continue Reading »

MFTransparency, a US-based nongovernmental organization (NGO) that provides information on credit products and pricing, has published updated pricing data for Cambodia. The updated data builds on the original data published in 2009 as part of its collection of international microloan product pricing data. Continue Reading »

The Insurance Commission (IC) of the Philippines, an organization that was established in 1949 and mandated by law to regulate and supervise the country’s insurance industry, recently stated that it expects 20 percent of the population of the Philippines to be insured by the end of 2011 as a result of more insurance companies offering microinsurance to people with low incomes. Continue Reading »

The Economist, a UK-based weekly news publication, recently commented on the growth of the microfinance activities of Bank Tabungan Pensiunan Nasional (BTPN), an Indonesian commercial bank. According to The Economist, BTPN’s microfinance portfolio growth is fueled by the informal economy on the populous island of Java including market traders, repair shops and household producers. BTPN equips staff with portable devices to scan fingerprints and bank cards to serve illiterate customers and also facilitate real-time information exchange between its branches and head office. BTPN also offers free financial skills training courses to its microborrowers. Continue Reading »

Swadhaar Finserve Private Limited (SFPL), an Indian microfinance institution, recently received honors for “Appropriate Collections Practices” from the Smart Campaign, an initiative that focuses on client protection in microfinance. According to Smart Campaign Tool Development Specialist Leah Wardle, “SFPL won our Call for Tools because their policies and procedures for collections are a good example of how microfinance institutions (MFIs) can provide staff with clear expectations for dignified treatment of clients during collections processes. From their general code of conduct for collections to their specifics on ethical loan recovery procedures, SFPL’s policies clearly embody elements of our Client Protection Principles.” [1]. Smart Campaign’s Client Protection Principles focus on non-coercive debt collection practices and other aspects of good governance such as avoiding client over-indebtedness, privacy practices and transparent pricing. Continue Reading »