Indian Express

‘MFIs should tap capital markets’

Press Trust of India Posted online: Thu Nov 29 2012, 01:16 hrs
New Delhi : Micro-finance institutions need to explore the option of raising funds from the capital market and take advantage of the government schemes for investment purposes, a top finance ministry official said today.

“We perhaps need to look at the issue of resource for micro-finance institutions. We have not yet looked at possibility of tapping the capital markets specially when we have several new schemes like Infrastructure Development Fund (IDF),” department of economic affairs (DEA) secretary Arvind Mayaram while speaking at the Microfinance India Summit 2012 here.

SKS Microfinance has been the only MFI to come out with a public issue so far. Mayaram also asked the MFI industry to initiate steps to dispel the impression that giving funds to vulnerable sections of society was a risky proposition. “The issue (of) this risk perception of lending to poor has been very high. And this aspect needs to be looked at and also it is important have a study on this area,” he said.