Microfinance Industry Back on Growth Path

Thursday, September 10, 2015

After going through a crisis period, the country's microfinance industry has returned to the growth phase, especially in the light of stable regulatory framework, says a report. 

With the industry seeing better growth prospects, companies like SKS Microfinance are expected to benefit, Karvy Stock Broking said in a report today. 

The microfinance industry in India has returned to growth phase in terms of gross loan portfolio value on the back of a stable net interest margin of over 10 per cent, total number of borrowers, branch network in the light of stable regulatory framework after going through a crisis in last few years, it added. 

"SKS Microfinace is expected to benefit from the rebound in the microfinance sector's growth in the light of regulatory clarity post the AP MFI crisis," the report said. 

It added that the company's well diversified presence, credit rating, strengthened balance sheet, track record in handling crisis, efforts to get small finance banking licence augurs well in the long term. 

The microfinance industry in India had witnessed phenomenal growth from the year 2000 till the crisis in Andhra Pradesh during 2010. 


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

lending, microfinance