Inverting the Pyramid - The Changing Face of Indian Microfinance

This report on the Indian microfinance landscape focuses on the unique business potential of Indian MFIs to attract commercial financial and human resources to reach out to hitherto un-banked segments of the population. The report analyzes:

• Market dynamics of Indian microfinance;
• Key trends in the microfinance industry in institutional structures, profiles and operational strategies;
• Demand for microfinance in India;
• Ongoing initiatives that provide microfinance services across geographies and client segments;
• MFIs that have shown aggressive growth, financial performance and movement towards sustainability;
• Key drivers of microfinance growth in the future.

The report highlights innovations in financial instruments, delivery channels and business partnerships and points that MFIs are fast overcoming the legal and market-related constraints in reaching out to the poor. Finally, the report emphasizes that:

• Progressive regulation, innovative business strategies and investments in institutional capacities have important roles to play in promoting this growth;
• Indian MFIs are expected to build a portfolio of USD 6.27 billion over an active borrower base of 48.7 million by 2012 in the most likely growth scenario;
• To support this growth, both large and small MFIs will require cumulative equity capital of USD 535 million and debt of USD 5.46 billion.