Yes Bank Limited, a private bank based in Mumbai, India, has reportedly recalled approximately INR 1 billion (USD 22.2 million) in loans it advanced to microfinance institutions (MFIs).
The lenders contacted included Ujjivan Financial Services, an MFI based in Bangalore, and Equitas Micro Finance India, an MFI based in Chennai, asking them to pay back their loans to Yes Bank by December 31, 2010.
As of year-end 2009, Ujjivan Financial Services has a gross loan portfolio USD 82.4 million, total assets of USD 90.5 million and approximately 567,000 borrowers. Equitas reports to the Microfinance Information Exchange (MIX) assets of USD 165 million, a gross loan portfolio of USD 134 million, 888,600 active borrowers, return on assets of 4.5 percent and return on equity of 12.38 percent as of March 2010.
By Witt Gatchell, Research Associate
About Ujjivan Financial Services:
Ujjivan is a microfinance institution (MFI) based in Bangalore, India, that offers loans and insurance. It was founded in 2004 and focuses on low-income women in urban and semi-urban areas. Its products include business loans, educational loans, emergency loans, and life insurance. As of year-end 2009, Ujjivan Financial Services has a gross loan portfolio USD 82.4 million, total assets of USD 90.5 million and approximately 567,000 borrowers.
About Equitas Micro Finance India Private Ltd:
Equitas is a microfinance institution (MFI) that was created in December 2007 and is located in Chennai, India. The company provides microcredit to low-income households in India. The objective of the company is to make credit available at a reasonable cost and in a transparent manner to the underbanked population of India, as well as achieve sufficient returns on investment in order to attract capital. As of March 2010, Equitas reports to the Microfinance Information Exchange (MIX) assets of USD 165 million, a gross loan portfolio of USD 134 million, 888,600 active borrowers, return on assets of 4.5 percent and return on equity of 12.38 percent.
Sources and Additional Resources:
[1] Livemint.com: “Yes Bank asks MFIs to return `100 cr loans” http://www.livemint.com/2010/12/26221347/YesBankasks-MFIstoreturn.html?a…
MICROCAPITAL STORY: SKS Microfinance, Share Microfin, and Equitas Microfinance Collaborate with Yes Bank to Securitize a Series of Micro-loans in India that Cumulatively Amount to USD 38.3 Million
https://www.microcapital.org/microcapital-story-sks-microfinance-share-mi…
MICROCAPITAL BRIEF: Local Government in Indian State of Andhra Pradesh Considers Additional Microfinance Regulation, Requires Disclosure of Operational Procedures
https://www.microcapital.org/microcapital-brief-local-government-in-india…
MicroCapital Universe Profile: Ujjivan Financial Services
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ujj…
MicroCapital Universe Profile: Equitas Micro Finance India Private Ltd
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Equ…
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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