MFIs need more external cap­i­tal

Banking Frontiers - - News / Mfi -

Rat­ing agency ICRA says in a re­port that mi­cro­fi­nance in­sti­tu­tions and small fi­nance banks in In­dia would need an external cap­i­tal of `9,000-`11,000 crore to grow at a CAGR of 25-30% over the next three years. It said the credit costs for the in­dus­try are likely to be in the range of 5.5-8% for the fi­nan­cial year 2017-18. In FY17, MFIs and SFBs raised an ag­gre­gate of `4,713 crore of equity cap­i­tal, of which `1,155 crore was raised af­ter de­mon­e­ti­za­tion, in­di­cat­ing con­tin­ued sup­port from equity in­vestors. For the fi­nan­cial year 2017-18, ICRA ex­pects a to­tal cap­i­tal re­quire­ment for MFIs and SFBs at `4,000-5,000 crore.

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