Share Microfin, an Indian microfinance institution (MFI), has reportedly reached agreements with a number of banks, including ICICI Bank Limited, to restructure debt owed by Share worth about INR 12 billion (USD 245 million). The term of the debt is to be extended over a seven-year period, and the new interest rate has been reported to be fixed at 12 percent per year.
As of March 31, 2011, Share reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 553 million, a gross loan portfolio of USD 465 million, return on assets (ROA) of 0.33 percent, return on equity (ROE) of 2.4 percent and 2.84 million borrowers.
By Cameron Milani, Research Associate
About Share Microfin: Share Microfin Limited is a microfinance institution (MFI) based in Hyderabad, India. After beginning operations in 1989 as a nonprofit, Share was converted into a non-bank financial institution (NBFI) in 2000. It offers loans—primarily to women—as well as training and consulting to microentrepreneurs. As of March 31, 2011, Share reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 553 million, a gross loan portfolio of USD 465 million, return on assets (ROA) of 0.33 percent, return on equity (ROE) of 2.4 percent and 2.84 million borrowers.
Sources and Additional Resources:
Bloomberg Businessweek, “Share Microfin’s Banks Agree to 12 Billion Rupee Restructuring,” http://www.bloomberg.com/news/2011-09-29/share-microfin-s-banks-agree-to-12-billion-rupee-restructuring.html
FirstPost, “Share Microfin Gets Rs 1,200 CR Debt Restructuring Deal,” http://www.firstpost.com/fwire/share-microfin-gets-rs-1200-cr-debt-restructuring-deal-95736.html
MicroCapital Article, August 17, 2011: “MICROCAPITAL BRIEF: Indian Microfinance Institutions (MFIs) Share, Spandana Sphoorty, Asmitha Consider Merger, Continue Debt Restructuring Talks,” https://www.microcapital.org/microcapital-brief-indian-microfinance-insti…
MicroCapital Article, October 12, 2011: “MICROCAPITAL BRIEF: Microfinance Institutions in India’s Andhra Pradesh State Seek Government, Commercial Bank Assistance in Restructuring Loans” https://www.microcapital.org/microcapital-brief-microfinance-institutions…
MicroCapital Universe: Share Microfin, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SHARE+Microfin+Limited
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