MICROFINANCE
The great Indian money hunt: Why India's shadow banks are pulling in billions of dollars
Blackstone is negotiating a significant investment in IIFL Finance, indicating rising global interest in non-bank lenders. Recent deals include investments by Carlyle and Advent International in housing finance firms. The demand for credit in India is growing, with NBFCs playing a crucial role in accessing underserved markets. Foreign investments in the financial sector have exceeded $20 billion since 2025, reflecting confidence in stability.
Up to 12,000% growth! 181 companies more than doubled profits in Q2 earnings boom for India Inc
India Inc witnessed a strong earnings recovery in Q2 FY27, with 181 companies more than doubling their net profits year-on-year, according to Ace Equity data. Gains spanned banking, metals, energy, pharmaceuticals and consumer sectors. From Indian Oil and JSW Steel to Paytm and Lenskart, here are the biggest profit gainers and what drove their growth.
ETMarkets Management Talk | Northern Arc sees D2C lending contributing over 75% of its loan book in the next few years
In this edition of ETMarkets Management Talk, Ashish Mehrotra, Managing Director and CEO of Northern Arc Capital, discusses the company's next phase of growth, its plans to expand the D2C business, and how a higher share of direct lending could support margins and return ratios. He also explains Northern Arc's broader strategy of combining a growing balance-sheet-led lending business with a capital-light, fee-based Credit Solutions platform to drive sustainable long-term returns.
Satya Micro Capital to sell its housing finance arm to address liquidity crunch
Satya Micro Capital plans to sell its housing finance subsidiary for ₹150-200 crore to ease liquidity pressure and strengthen its financial position. The microfinance lender has shortlisted three buyers and expects to close the deal within a month. The move comes amid mounting debt repayments, weak asset quality and losses.
IIFL Finance board to weigh Blackstone, Advent proposals for Rs 5,000 crore capital raise
IIFL Finance's board will consider separate investment proposals from Blackstone and Advent International for a nearly Rs 5,000 crore capital raise, as the lender also explores a potential transaction involving Fairfax's stake sale.
Muthoot Microfin to raise $40 million from responsAbility, BlueOrchard
Muthoot Microfin has initiated the process to raise $40 million in external debt from two Swiss investors. After previously delaying due to high hedging costs, the company expects completion by December. It aims to secure $25 million from ResponsAbility Investments and $15 million from BlueOrchard. Hedging costs had spiked due to the West Asia crisis but have recently stabilized.
These large-, mid- and small-cap stocks have upside potential of up to 31% in 1 year, according to analysts
In the last two years, the world has learnt that you can never quite predict what US President Trump will do next. Tomorrow, to pull attention one way or another, there could well be some more action against Iran, changing the mood again in a single afternoon. So, the improvement in sentiment is real, but it is also fragile.
Microfinance lenders tread cautiously amid rural stress
The microfinance sector experienced varied performance in the second quarter of FY27, reflecting economic uncertainty. Bandhan Bank and CreditAccess Grameen saw declines in their microfinance portfolios, while IndusInd Bank grew its portfolio. Lenders are concerned about the impact of drought and inflation on rural borrowers. Estimates for the sector's growth varied between credit information companies, indicating inconsistencies. Collection discipline has improved, but localized climate disruptions continue to pose risks.
Muthoot Microfin Q2 profit jumps 3.6 times to Rs 111 crore
Muthoot Microfin reported a 3.6-fold year-on-year rise in Q2 net profit to Rs 111 crore, supported by secured lending growth and improved asset quality. Total income increased 27% to Rs 733 crore, while gross NPAs declined to 3.38%.
Utkarsh Small Finance Bank reports sixth consecutive quarterly loss
Utkarsh Small Finance Bank experienced a loss of Rs 70 crore in the second quarter, marking six consecutive quarters of decline. The lender’s operating profit was Rs 85 crore, but provisions of Rs 166 crore led to the net loss. Its gross non-performing asset ratio improved slightly, standing at 5.96% at the end of September. The bank's gross loan portfolio saw a year-on-year growth of 7.5%, reaching Rs 20,062 crore.
Fusion Finance swings to Rs 86.5 crore profit as asset quality improves
Fusion Finance reported a net profit of Rs 86.5 crore in Q2, reversing a year-ago loss of Rs 22.1 crore. Gross NPAs improved to 1.6%, AUM grew 14%, and NIM expanded to 12.5%.
Spandana Sphoorty reports Rs 7.8 crore cyber fraud in bank account
Spandana Sphoorty reported cyber fraud that led to unauthorized transactions of Rs 7.8 crore. The fraud was discovered on Sunday, prompting immediate action from the microfinance company. A senior official stated that the company has insurance that covers the losses incurred due to the fraud. Services associated with the fraud were halted, and investigations are currently underway. The company has requested its bank to reverse the transactions and investigate further.
Spandana Sphoorty Financial reports cyberattack involving its bank account
Spandana Sphoorty Financial encountered a cyber fraud incident with unauthorized transactions on November 1. The amount involved was approximately 78 million rupees, which was transferred to multiple beneficiary accounts. Upon detection, the company promptly stopped affected services and notified its bank. A request for reversal and account freezing was also made to the bank. Additionally, Spandana registered a complaint with the National Cyber Crime Reporting Portal.
Banks seek microloan guarantee extension
IDFC First Bank and small finance banks such as AU, Jana and Suryoday were among the biggest users of the scheme to reduce credit risk. They have set aside the guarantee fee for the current fiscal year, expecting the government to reopen the window soon, people aware of the matter said.
Muthoot Finance Q2 cons profit jumps 36% YoY to Rs 3,278 crore
Muthoot Finance reported a 36% year-on-year rise in consolidated net profit to Rs 3,278 crore in Q2, while assets under management grew 42% to Rs 2.09 lakh crore. However, standalone gross NPA ratio rose to 3.87% from 2.28% in the previous quarter, indicating a deterioration in asset quality
Spandana Sphoorty makes profit in Q2 against a loss year-ago
Spandana Sphoorty Financial reported consolidated Q2 profit of Rs 18 crore, reversing a Rs 249 crore year-ago loss. Assets under management grew 31% to Rs 5,364 crore, while improving asset quality reduced gross and net NPAs.
Satin Creditcare Q2 profit surges over three-fold as asset quality improves
Satin Creditcare Network reported a more than three-fold rise in consolidated net profit to Rs 176 crore in the second quarter, helped by lower microfinance provisions, portfolio growth and improved asset quality. Its gross NPA ratio improved to 1.9% from 3.5% a year earlier, signalling a recovery from earlier stress.
Book microfinance brass if farmers face recovery harassment: Maharashtra CM Devendra Fadnavis
"All superintendents of police have been instructed to immediately file a case if anyone (microfinance companies) is found harassing any farmer for repayment of dues. We have told them that if they find that microfinance companies are threatening or using force against farmers, they should take action and file a case against their top officials. The state government has taken a decision in this regard," said the chief minister.
'Talked to RBI, forcible recovery from farmers should be stopped': Maharashtra CM
Maharashtra Chief Minister Devendra Fadnavis announced efforts to halt forceful loan recoveries by microfinance companies affecting farmers. As drought conditions worsen, the state government will provide Rs 5,000 relief to farmers during Diwali. The government approved Rs 1.5 lakh crore for additional assistance while ensuring direct fund transfers to farmers. Deputy Chief Minister Eknath Shinde confirmed that multiple benefits would be offered to farmers declared under drought.
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