SKS Microfinance Wednesday said Micro Units Development and Refinance Agency (Mudra) has sanctioned a refinance line of Rs 100 crore to the company at 10 percent per annum to extend finance to micro entrepreneurs.
Continuing with the bullish stance on SKS Microfinance, foreign investors have hiked their stake in it to all-time high of 44.72 percent during the July-September quarter amid a sharp rise in the company's share price.
The diversified group, which nets its maximum income from the gold loan business, started its MFI business in April, 2010. As part of diversification and to offer more focus to the MFI business, the company had bought city-based Pancharatna Securities in January, 2012.
Ujjivan Financial has raised Rs 45 crores (USD 9 million) equity capital from IFC and an additional Rs 2.28 crore (USD 0.45 million) from FMO (Netherlands Development Finance Company), the company said in a statement.
An Andhra Pradesh Law, said to be the root cause of the collapse of microfinance in India and the state in particular, has no jurisdiction over microfinance institutions registered as Non-Banking Financial Company (NBFC), the RBI has told the AP High Court recently.
Nearly nine million Indian households, or 45 million individuals, saw their incomes rise above the threshold of USD 1.25 a day, or Rs 56, in the two decades ended 2010, reflecting the success of microfinance, says a survey.
About 30 persons have committed suicide in the last 45 days, apparently due to the coercive methods of MFIs in Andhra Pradesh, a shocking figure that prompted the state government to issue a special ordinance to rein in the MFIs.