Vijay Mahajan, chairman of Indian for-profit microfinance institution (MFI) BASIX, began a 75-day journey in January 2011 on foot, public transport and car across 12 Indian states to obtain direct feedback from poor people on the effect of microfinance on their lives. Mr Mahajan began his journey amidst criticism that BASIX charges unreasonably high interest rates.
Covering a distance of 80-90 kilometers daily, Mr Mahajan had reportedly covered the areas of Gadchiroli and Chattisgarh in February 2011, and was expected to cover the states of Orissa, Uttar Pradesh, Uttarakhand, Sikkim, Assam, Meghalaya, Tripura, Jharkhand and Andhra Pradesh over the following weeks.
In 2009, BASIX reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 302 million, a gross loan portfolio of USD 172.5 million, approximately 1.1 million borrowers, return on assets (ROA) of 3.1 percent and return on equity (ROE) of 23.2 percent. For-profit MFIs Spandana Sphoorty and SKS Microfinance earned an ROA of 8.9 percent and 4.9 percent, respectively, in the same period [1].
By Medha Ravi, Research Associate
About BASIX:
Established in 1996, BASIX Group consists of several companies based in India that work in 17 states in the country as of 2009 and have also extended technical services to other countries in Asia and Africa. Companies in the group provide various services to the poor including financial services, agricultural/business development services, and institutional development services. Its holding company is Bhartiya Samruddhi Investments and Consulting Services (BASICS Ltd.). In 2009, BASIX reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 302 million, a gross loan portfolio of USD 172.5 million, approximately 1.1 million borrowers, return on assets (ROA) of 3.1 percent and return on equity (ROE) of 23.2 percent.
Source and Resources:
The Economic Times news article, “MFI Basix boss, Vijay Mahajan goes on 12-state padyatra”, http://articles.economictimes.indiatimes.com/2011-02-10/news/28424031_1_mfis-sks-microfinance-microfinance-institution
MicroCapital.org story, November 2, 2010, “MICROCAPITAL BRIEF: CEO of Indian Microfinance Institution BASIX Denies Charging Interest Rates of More than 24%”, https://www.microcapital.org/microcapital-brief-ceo-of-indian-microfinance-institution-basix-denies-charging-interest-rates-of-more-than-24/
MicroCapital.org story, July 8, 2010, “MICROCAPITAL BRIEF: President of Microfinance Institutions Network (MFIN), Mr Vijay Mahajan, Confronts “Misconceptions” About Microfinance Industry”, https://www.microcapital.org/microcapital-brief-president-of-microfinance-institutions-network-mfin-mr-vijay-mahajan-confronts-%E2%80%9Cmisconceptions%E2%80%9D-about-microfinance-industry/
MicroCapital’s Microfinance Universe Profile: BASIX Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BASIX+Group
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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