Microfinance Cracking the Capital Markets, South Asia 2010: Conference Highlights
This paper presents highlights of the conference, Microfinance Cracking the Capital Markets, South Asia that ACCION International organized in New Delhi, India, on July 27, 2010.
Conference participants stated that Indian microfinance has the potential for more growth. It is, however, curtailed by lack of funding, regulatory changes and oversaturation. Key points in the conference included:
- Equity investors evaluate MFIs’ growth not solely by number of clients they serve, but by the diversity, suitability, and quality of their financial products;
- New debt and equity funding can raised from the Indian capital markets and private wealth of individuals;
- Large number of foreign debt funds are ready to provide capital to Indian MFIs if the non-convertible debentures framework is approved on a permanent basis;
- Effective management is as important as a strong balance sheet for equity investors to place their money with an MFI.
While the Indian microfinance sector has made inroads into the capital markets, there is further scope to raise funds and provide financial services to people who are as yet unserved.