SHARE Microfin Limited (SHARE), a microfinance institution (MFI) based in Hyderabad, India, has announced that ICRA Limited (formerly known as Investment and Credit Rating Agency of India Limited), a financial rating agency in India that is partially held by Moody’s Investors Service of the US, awarded SHARE with the highest microfinance grade of M1, up from a grade of M2 that was awarded last year. The ICRA grading system involves an evaluation of business risks, financial risks, governance structure and asset quality, among other factors. Grades range from M1 to M4, with M1 indicating that an MFI is able to manage its activities at the highest level of financial and social sustainability. SHARE is reportedly the only MFI that has been rated at this level by ICRA.
ICRA also reportedly upgraded SHARE’s long-term bank loan rating from LBBB+ to LA- [1]. Its short-term bank loan rating was upgraded from A2+ to A1. SHARE reports to Microfinance Information Exchange (MIX) that as of March 31, 2010, it has USD 576.9 million in assets, a gross loan portfolio of USD 490 million, 990 branches, 2.3 million active borrowers, return on assets of 5.5 percent and return on equity of 45.18 percent.
About ICRA Limited: Formerly known as the Investment and Credit Rating Agency of India Limited, ICRA Limited was established in 1991 through the collaboration of commercial banks, investment companies and financial services institutions. It is a public, limited company with its shares listed on the Bombay Stock Exchange and the National Stock Exchange of India. Its largest shareholder is Moody’s Investors Service of the US.
About SHARE Microfin Limited: SHARE Microfin Limited is a microfinance institution (MFI) based in Hyderabad, India. It began operations in 1989 as a nonprofit. It has been a non-bank financial institution since 2000. It offers loans primarily to women as well as training and consulting [1]. SHARE Microfin reports to Microfinance Information Exchange (MIX) that as of March 31, 2010, it has USD 576 million in assets, a gross loan portfolio of USD 490 million, 990 branches, 2.3 million active borrowers, return on assets of 5.5 percent and return on equity of 45.18 percent.
By Diana Baide, Research Assistant
Sources and Additional Sources:
[1] Press Release supplied to MicroCapital by SHARE Microfin Limited
MicroCapital’s Microfinance Universe profile: Share Microfin Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SHARE+Microfin+Limited
MicroCapital’s Microfinance Universe profile: ICRA Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ICRA
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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