Tuesday, December 07, 2010

Crisis in microfinance?

In an India Development Blog post The Identity Crisis in Indian Microfinance Brajesh says:
"In a recent meeting I had with a CEO of a MFI, he told me that he had over a decade of experience in micro finance but no experience in development."
There is an announcement of an Event: The Global Implications of India’s Microcredit Crisis at Center for Global Development. It seems that Swaminathan Aiyar may participate.
My take: leave it to essentially non-profit local micro organizations. See also C.S.Reddy's article Will the Indian SHG Movement Withstand the Competition offered by MFIs?

1 comment:

Rajan Alexander said...

Can SKS Microfinance buck the industry’s momentum to doom?

When Akula naively disclosed that collections have come in lower than normal post the Andhra Pradesh government ordinance, the effect was a virtual invitation to bears to hammer the stock. And the bears responded with glee. SKS share touched a historic low of Rs 601 in the National Stock Exchange (NSE) - a fall of 60% from its all time high of Rs 1,490 - trading stopped by triggering the 20% downward circuit breaker! Feeling the pinch, Akula and his CFO, Dilli Raj walks into CNBC-TV 18 Newsroom to give an interview in an attempt to stem the tide. The interview succeeded in arresting the decline of the stock, giving it a small bounce and is trading around Rs 710 since.

The question is whether SKS can hold on to its strong support between Rs 705-711 or would this range instead turn into a strong resistance level for that stock? To answer this we need to revisit Akula’s claims on November 18th to ascertain their veracity on the basis of new information now available to the market.

Read More: http://devconsultgroup.blogspot.com/2010/12/can-sks-microfinance-buck-industrys.html