BNP Paribas, a France-based bank, recently informed MicroCapital that it has issued a loan to Madura Micro Finance of India for the first time. The bank lent INR 500 million (USD 7 million) to the Chennai-based microfinance institution (MFI), which is scheduled to repay the loan in eight quarterly installments.
Madura, founded in 2005, is licensed as a non-bank finance company – MFI and mainly lends to women’s self-help groups. It has 350 branches in 7 states and union territories. As of March 2019, it serves 960,000 people with a portfolio of INR 19.6 billion (USD 275 million). Its return on managed assets for the year was 4.7 percent, and its return on net worth was 29 percent. Its top shareholder, with a 32-percent holding, is the MFI’s managing director, Dr Tara Thiagarajan.
BNP Paribas, which was formed when Banque Nationale de Paris (BNP) acquired a majority stake in Paribas in 1999, operates in 72 countries. As of December 2018, BNP Paribas had total assets of EUR 2.04 trillion (USD 2.29 trillion). As of August 2019, it has EUR 220 million (USD 246 million) invested in microfinance institutions, largely in India, but also in 16 other low- and high-income countries.
Sources and Additional Resources
Information provided directly from BNP Paribas to MicroCapital
ICRA (formerly known as the Investment Information and Credit Rating Agency of India Limited) profile on Madura
https://www.icra.in/Rationale/ShowRationaleReport/?Id=87413
BNP Paribas homepage
https://group.bnpparibas
BNP Paribas financials
https://invest.bnpparibas.com/en/consolidated-financial-statements
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