Some highlights of a report from LiveMint dated July 13, 2009.

1. The microfinance industry has seen the most active venture capital deal flow within the banking and financial sector since January 2008.
2. Of about 50 private equity deals worth $1 billion (Rs4,940 crore) in banking and finance in the last 18 months, microfinance alone accounted for 20 deals worth at least $200 million.
3. Last week SKS Microfinance, the largest microfinance institution (MFI) in India, announced a $10 million strategic investment from general and life insurance firm Bajaj Allianz Life Insurance Co. Ltd. The two firms had come together last year to launch the first micro-insurance product for the rural poor. The deal signals the significance of how the client network built by MFIs could serve as a distribution channel for products besides credit.
4. Besides SKS, firms such as Equitas Micro Finance India Pvt. Ltd, Bhartiya Samruddhi Investments and Consulting Services Ltd (Basix Group), SHARE Microfin Ltd, Bandhan Microfinance, and Ujjivan Financial Services Pvt. Ltd have acquired larger customer and capital base. So, the sector is bracing to see at least a couple of big ticket fund raisings in the coming months.   SHARE Microfin and Spandana Microfinance are in the process of raising rounds between $50 million and $60 million, say some industry representatives.
5. The credit requirement in India is huge and market penetration is still believed to be around 10% of the total requirement. In fact, 40% of India’s population is unbanked, while MFIs have been able to reach only 114 million people with a loan portfolio of over $1 billion, leaving scope for growth.

On the challenges faced by the microfinance sector, the report had this to say – “Though the sector paints a pretty picture, there are a number of challenges going ahead, players believe. Multiple borrowings by the same customer and hiring of staff to keep up with the growth have emerged as impediments.”

Microfinance Training Academy,has been established with the primary goal of ensuring that the Microfinance success story is not impeded by the staff hiring challenge.    MTA is putting in the infrastructure necessary to ensure a steady availability of trained manpower to the sector.   With the bulk of hiring and staff needs being at the bottom of the H.R. pyramid – Loan Officers aka Centre Managers;  MTA’s initial efforts are focussed on this segment.

As H.R. and Operations heads at Microfinance Institutions decide that  recruitment and training of new staff is a “non-core” activity, that is best outsourced, MTA is positioned to cater to those very needs.    A dedicated team of outreach professionals, trainers and recruiters continues to build and offer a solution to one of the most pressing needs of the sector.

For more information, please contact

General information about MTA – info@microfinancetraining.com
Placements – profiles@microfinancetraining.com

Phone: 91-141-6505014 / 91-9251649014

Microfinance Training Academy