MICROCAPITAL BRIEF: Indian Microfinance Institution Basix Sees Assets Fall from $326m to $22m

Indian microfinance institution (MFI) Basix, also known as Bhartiya Samruddhi Finance Limited, now reportedly has INR 124 crore (USD 22.37 million) in assets compared to the INR 1,808 crore (USD 326 million) it in September 2010. The number of borrowers from Basix has fallen to 200,000 from 1.74 million during same time period.

As borrowers in the Indian state of Andhra Pradesh have failed to  repay INR 500 crore (USD 90 million) of loans to Basix  and banks have refused to extend new wholesale loans to the microlender, its net worth has turned negative. Basix’s founder, Vijay Mahajan, reportedly remains hopeful, meeting with investors and lenders to Basix including the World Bank’s International Finance Corporation and the Small Industries Development Bank of India.

Moving forward, Basix noted, “Basix will primarily remain as a livelihood promotion organization, while microlending will remain as one of its businesses.” Basix’s other services include providing poor people with diversified products in mobile, insurance and business development.

About Basix Group
BASIX Group is an Indian entity whose members provide poor people with products including microfinance, mobile payments, health insurance and agricultural and business development services. BASIX Group operates through a holding company, Bhartiya Samruddhi Investments and Consulting Services Limited (BASICS). The group’s microfinance activities are carried out by two microfinance institutions (MFIs): Bhartiya Samruddhi Finance Limited (BSFL), a non-banking finance company (NBFC), and Krishna Bhima Samruddhi Local Area Bank Limited (KBSLAB), a rural bank. BASIX Group also promotes BASIX Academy for Building Lifelong Employability Limited, BASIX Consulting and Training Services Limited, BASIX Krishi Samruddhi Limited, BASIX Sub-K iTransactions Limited and Ctran Consulting Limited. As of December 2011, BASIX Group reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 70 million, a gross loan portfolio of USD 57 million, operations in 16 Indian states and 6 other countries.

By John Crawford, Research Associate

Sources and Additional Resources

[1] http://www.livemint.com/2012/05/29223458/Basix8217s-lending-business.htm…

MicroCapital story, June 4, 2012, “MICROCAPITAL BRIEF: SKS Microfinance of India to Offer Life Insurance,”https://www.microcapital.org/microcapital-brief-sks-microfinance-of-india…

MicroCapital story, May 24, 2012, “MICROCAPITAL BRIEF: Loan Recast Proposal of India’s SWAS Admitted into Corporate Debt Restructuring Cell,”https://www.microcapital.org/microcapital-brief-loan-recast-proposal-of-i…

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