Now Reading: Muthoot Microfin delays $25M ECB, waits for RBI clarity
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Muthoot Microfin delays $25M ECB, waits for RBI clarity
Muthoot Microfin is holding back a $25-million external commercial borrowing as it awaits the Reserve Bank of India's decision on lower swap rates and hedging cost concessions for non-public sector undertakings, CEO…
The Story in Brief
Muthoot Microfin is holding back a $25-million external commercial borrowing as it awaits the Reserve Bank of India's decision on lower swap rates and hedging cost concessions for non-public sector undertakings, CEO Sadaf Sayeed told ET. The Kochi-based microfinance company has sanction letters valid till September.
The company's average cost of funds fell 14 basis points to 10.13% in the June quarter. Its gross loan portfolio grew 18% year-on-year to Rs 14,457 crore, even as the overall microfinance sector shrank 4% in the same period.
The Indian Opinion
The narrative that the RBI must extend the hedging-cost concession to all private borrowers ignores why it was created: to boost dollar inflows through PSUs. Muthoot Microfin has time till September, so this is not a crisis. The real test will be the RBI's stance on swap-rate parity for non-PSU firms, and whether other NBFC-MFIs will follow the same wait-and-watch approach.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
