The talks have begun, three people familiar with the matter told ET. There s no certainty on which of the negotiations would conclude in a transaction.
Are loan repayments in lockdown mode?
May 10, 2021
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With the pandemic still not under control, collection efficiency of MFIs may be hit and risk perception for the sector remains high
The spurt in fresh infections following the second wave of Covid-19 pandemic and the lockdown being announced in several States mayimpact the collection efficiency of microfinance institutions.
Industry experts, however, feel it is still too premature to gauge the exact impact on loan growth and repayments, as there is still a lot of uncertainty around when the second wave will peak out.
According to Alok Misra, CEO and Director, MFIN (Microfinance Institutions Network), the first quarter is likely to be tepid as there is still uncertainty, but going by various mathematical and statistical predictions, the curve is likely to flatten out in end May or early June. Post that there could be a pick-up in business activity, given that there is a lot of pent-up demand.
Microfinance cos’ ECB more than halve in FY21
April 16, 2021
Sharp decline in fresh disbursements, competitive interest rates key reasons
After a steady growth in last few years, external commercial borrowings (ECBs) of domestic microfinance companies have more than halved in FY21 amid a sharp decline in fresh disbursements, coupled with ample liquidity and competitive interest rates in the domestic market.
According to RBI data, overseas borrowing of microfinance institutions (NBFC-MFIs) fell to $59.29 million between April 2020 and February 2021. In contrast, their borrowing during the corresponding period last year stood at $137 million.
“One of the primary reasons (for lower borrowing) could be the overall cut back on fresh disbursements by MFIs, especially in the first two quarters of FY21,” said Aastha, Partner, Argus Partners, adding: “Microfinance borrowers, having been the worst hit by the pandemic and the consequent lockdown, were unable to repay their loans an
Arohan plans to raise up to ₹1,800 crore via share sale
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MUMBAI :
Kolkata-based Arohan Financial Services Ltd on Monday filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) to raise funds in an initial public offering (IPO).
The Aavishkaar group promoted lender is planning a ₹1,750-1,800 crore IPO, a person aware of the matter said requesting anonymity.
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The public offer include new shares worth ₹850 crore, and an offer for sale of 27.06 million equity shares by Maj Invest Financial Inclusion Fund II, Michael and Susan Dell Foundation, Tano India Private Equity Fund II, TR Capital III Mauritius and Aavishkaar Goodwell India Microfinance Development Co. II Ltd.