MFIs have bigtime designs for India

Accion International, a leading microfinance institution MFI, is planning big for India. The company 8212; operating currently in Mumbai and Bangalore 8212; wants to expand up to a dozen cities with an investment of 80-100 million over two to three years. 8220;We will look to build strong MFIs with a minimum capital of 5 million and provide them with technical assistance, training and also capital if required,8221; said Accion president and CEO Maria Otero.

NPA8217;s have been a concern for the MFIs. According to Maria, globally the loss percentage in the microfinance business as a result of NPA ranges between two to three per cent and Accion is looking to keep the loss for India around the same levels. Responding to concerns on the farm loan waiver that the government has recently offered, Mario expressed her concern, 8220;We have seen that happening in Bolivia but the government took it back within a few months. It affects MFIs and the business as a whole.8221;

Standard Chartered 8211; which is working closely with Accion 8212; is also looking to expand its microfinance base in India. Currently operating with 15 MFIs with a total lending of Rs 172 crore, the bank plans to increase its scale. 8220;Within one year we plan to increase our base to 20-22 MFIs and increase our capital to Rs 400 crore,8221; said Standard Chartered Bank MD and global head, development organisation Vibhuti Sharma.