Global fin giants to go micro in India

Saturday, March 24, 2007

India?s growing microfinance segment may soon see the entry of global financial services giant, Morgan Stanley and the Switzerland-based Blue Orchard Finance. Both these firms are in talks with the banking regulator Reserve Bank of India to foray into the local microfinance segment.

Indian microfinance institutions have already started looking at diversifying their avenues to raise funds as part of the effort to lower their dependence on banks especially after their experience in Andhra Pradesh. The two new entrants could look at infusing funds aggregating up to Rs 500 crore, if approvals come through.

With banks having choked off funding for microfinance firms in Andhra Pradesh, fresh inflow of capital could help ease the strain on liquidity for these firms. Morgan Stanley is a leading global financial services firm providing services in the fields of investment banking, securities, investment management, wealth management and credit services in more than 30 countries.

Blue Orchard Finance specialises in the management of microfinance investment products. The company assists banks and financial intermediaries seeking to invest in the microfinance industry by offering a comprehensive package of services.

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Source: The Economic Times (link opens in a new window)