MFIs need more external capital
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.