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Micro-finance institutions plan to raise about ₹20,000 crore over the next 18 months, according to a senior official at MFIN (Microfinance Institutions Network).
“About ₹2,000 crore worth of capital will be raised from private equity and other multilateral institutions, such as IFC. Further, about ₹2,000-3,000 crore will be raised through non-convertible debentures (NCDs) over the next 18 months,” said R Bhaskar Babu, Vice-President, MFIN and CEO, Suryoday Microfinance, on the sidelines of an MFI event.
The balance incremental funding of approximately ₹15,000 crore will be raised from banks, Babu added.
In FY2015, MFIs’ gross loan portfolio grew 61 per cent to ₹40,000 crore, according to a report by MFIN. MFIs attracted 84 per cent more debt funding in FY2015 compared to the previous fiscal.
At a panel discussion, MFI players said the sector is poised to expand further as government programmes such as Jan Dhan Yojana and other social security schemes give a fillip to financial inclusion. The client base of the MFI industry, which is currently at three crore, is set to grow by another 25-30 per cent.
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