Lenders Meet
Lenders Meet in January 2024, at BKC Mumbai
Sa-Dhan organised a Lender, Investors MFI Confluence (An interface of MFIs and Funders) to boost the flow of funds in the microfinance sector at Jio Convention Centre, BKC Mumbai on 23 January 2024. This was the third edition of such an initiative. The event was graced by CMD SIDBI Mr Raman, Mr G S Rawat DMD NABARD, Mr Paul Thomas MD-CEO, ESAF Bank, Mr P C Saboo CGM, SBI and Mr H P Singh, CMD, Satin along with eminent speakers. All the major public sector banks, private sector banks, NBFC lenders, Investors and MFIs participated and interacted with each other. The primary objective of the event was to delve into several means of finance available to MFIs, some innovative funding solutions, the importance of building the capacity of MFIs to access these funding solutions etc. There was excellent interaction between the lenders and the MFIs.
We thank all our speakers, sponsors and partners for the economic development of India, and for making this mega event happen. We are glad to share that the event was attended by Development Finance Institutions (DFIs), Public Sector Banks, Private Sector Banks, NBFCs and others.
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Lenders Meet in February 2023, at Mumbai
Microfinance Institutions (MFIs) have had three major sources to fund their growth, namely, debt, equity, and deposits (for those allowed to mobilize deposits). However, with changes in the nature of the industry and with the entry of new actors in the microfinance space, the sector is attracting several mainstream and new microfinance-focused investment funds. These funds are dependent on varied instruments such as changes in the fund flows, terms and costs, improving liquidity, better portfolios, healthy repayments etc. Tools such as First Loss Default Guarantees (FLDGs), Peer to Peer Lending (P2P), Microfinance Investment Vehicles (MIVs), Development or Social Investment Bonds (DIBs or SIBs) are being utilized and some of these investments have been able to deliver good financial and social performance. These changes are fueled by expansion of the financial inclusion ecosystem, entry of new players and new regulations etc. The smaller ones are dependent on non-banking finance institutions (NBFCs) while many are adopting new business models; such as increased securitization of portfolios, taking up role of business correspondents to other financial institutions or, acquired by larger NBFCs/Banks.
In order to delve into the several means of finance available to MFIs, some innovative funding solutions, importance of building capacity of MFIs to access these funding solutions etc, Sa-Dhan after a very long period, organised a Lender- MFI interface in Mumbai . More than 120 participants from 30 lending institutions and 30 MFIs attended the Meet. There was excellent interaction between the lenders and MFIs. While the lenders were very positive regarding funding the MFIs, they also indicated that there is a need for greater transparency and better governance practices in MFIs to get the confidence of lenders. Chairman NABARD, Deputy Managing Director SIDBI, Managing Director & CEO IDFC FIRST Bank, Chief General Manager IDBI, CGMs of SBI, NABARD, SIDBI and other senior-level executives. from MUDRA Ltd, NABSAMRUDHI, Ananya, ICICI Bank, HDFC Bank, PNB, YES Bank, BOB, Bandhan Bank etc attended the meet.