The Hindu Business Line : Share Microfin to expand activities

SHARE Microfin Ltd (SML), an Indian partner of the Bangladesh - based Grameen Trust, plans to open additional branches taking its network to 500 branches in the country by 2009. During this period, it also plans to provide services to 1.2 million poor women disbursing over Rs 3,990 crore, according to Mr Udaia Kumar, Chairman and Managing Director of SML.

SML, one of the large micro finance institutions in the country, is currently working in 3,997 villages with a network of 167 branches and has disbursed Rs 582.97 crore to 3.83 lakh rural women. The repayment rate is stated to be 99.99 per cent though loans are provided without any collateral but on mutual trust.

Addressing a press conference on the sidelines of an international workshop on Grameen Generalised System here on Friday, Mr Kumar said that in order to provide services to 1.2 million poor women, SML needed Rs 761.5 crore towards revolving loan funds and Rs 71.50 crore towards equity.

Hence, the company was inviting participation from investors. The workshop was held jointly by SML and the Grameen Trust.

He said that SML was successful in sourcing funds from various financial institutions in the country as well as from abroad. The US-based venture capitalist, Mr Vinod Khosla, had also invested $2 million in the company.

Mr Vijay Mahajan, Managing Director of BASIX, another organisation engaged in micro financing, said that there was no Government support for micro finance activities though it had emerged as a $1-billion industry in Andhra Pradesh.

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