According to the business standard, the microfinance sector in India plays a crucial role in financial inclusion, serving approximately 80 million low-income clients. As of March 2024, the portfolio outstanding reached ₹3,77,706 crore, with 6.6 crore unique borrowers. However, growth is projected to slow significantly to 4% in FY25, down from 28% in FY24 due to tighter lending conditions.
On January 2, the MicroFinance Institute Network (MFIN) postponed the implementation of restricting the number of lenders to three per borrower for three months. According to these sources, the revised deadline for implementing these guidelines is April 1, 2025.
In a report dated December 31, UBS stated that microfinance overdues are up 110 basis points month on month in November 2024. It forecasts reduced growth in fiscal year 2025 as stress and disbursement criteria tighten further.
Here are the stock jumped up to 9% after MicroFinance Institute Network (MFIN) deferred the implementation of limiting:-
Sundaram Finance Ltd
Sundaram Finance Limited is engaged in the business of financing commercial vehicles, cars, construction equipment, other vehicles, and housing finance in the retail segment, business of investments, mutual funds etc.
With a market capitalization of Rs 52,289.92 crore, the shares closed at Rs 4,706.40 per share, increased around 16 percent as compared to the previous closing price.
Cholamandalam Financial Holdings Ltd
Cholamandalam Financial Holdings Limited is an India-based investment company, holding investments in its subsidiary/associate / joint venture and other group companies. It operates through two segments: Financing, and Insurance.
With a market capitalization of Rs 28,237.97 crore, the shares closed at Rs 1,497.55 per share, increased around 8 percent as compared to the previous closing price.
CreditAccess Grameen Ltd
CreditAccess Grameen Limited is registered with the RBI as a non-deposit-taking NBFC – Microfinance Institution. It provides microfinance services to women who are members and structured into Joint Liability Groups. It also leverages its distribution channel to provide many additional financial goods and services to its members.
With a market capitalization of Rs 15,121.02 crore, the shares closed at Rs 954.10 per share, increased around 10 percent as compared to the previous closing price.
L&T Finance Ltd
L&T Finance Holdings Limited (LTFH) is an India-based non-banking financial company (NBFC), offering a range of financial products and services through its subsidiary L&T Finance Limited under the L&T Finance brand. The Company’s segments include Retail business, Wholesale business, Defocused business, and Others.
With a market capitalization of Rs 34,359 crore, the shares closed at Rs 142.90 per share, increased around 5 percent as compared to the previous closing price.
Jana Small Finance Bank Ltd
Jana Small Finance Bank is a prominent small finance bank in India, established to promote financial inclusion. It offers a wide range of banking services, including deposits, loans, and digital banking solutions, catering primarily to underserved segments like small businesses, low-income households, and micro-enterprises.
With a market capitalization of Rs 4,278.20 crore, the shares closed at Rs 408.45 per share, increased around 2 percent as compared to the previous closing price.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
