INSUBCONTINENT EXCLUSIVE:
KOLKATA: The microfinance sector is slowly getting into the fund raising mode with prospects of a revival
of business expansion after
a two-month caution amid credit squeeze.
Kolkata-based Village Financial Services is finalising plans to expand equity by Rs 50-70 crore by
way of raising capital from local investors, while Delhi-based Satin Creditcare Network has just raised $30 million (around Rs 213 crore) in
raised Rs 40 crore from non-bank lender Capital First and Mumbai-based firm Param Capital.
The MFI has more than doubled its loan portfolio
to Rs 943 crore at the end of September and is looking to continue with the momentum before its proposed initial public offer which may
happen sometime in the second half of next financial year.
Meanwhile, Satin, the third largest MFI by loan portfolio, has raised capital
from the Netherlands Development Finance Company (FMO)
Another Delhi-based firm Fusion Microfinance raised $75 million equity (Rs 520 crore) from investors led by US-based Warburg Pincus earlier
company.
The MFI has a portfolio of Rs 5,561 crore at the end of September, which grew 39% year-on-year
This was in contrast to NBFC-MFI sector's 58% growth on an average
Fusion, the ninth largest, grew its books 88% year-on-year to Rs 2,047 crore in the same period.
The sectoral growth was believed to have
slowed down in October and November following the ILFS-led credit crisis
The captains of the industry said that the difficult phase is now over.
Before the liquidity tightness, the overall microfinance industry
which includes banks and small finance banks, witnessed 51% yearon-year growth to Rs 1.47 lakh crore, according to Microfinance Institutions
NBFC-MFIs, which control 37% of the market, has their cumulative loan outstanding at Rs 54,018 crore.
