The RBI has invited views/comments of all stakeholders and the public at large on the Malegam Committee report on MFIs, latest by 13 February 2011
Mumbai: The Reserve Bank of India (RBI) today invited public comments on the Malegam panel report, which suggested among other things capping interest rate at 24% for loans extended by microfinance institutions (MFIs), reports PTI.
The committee, headed by RBI Central Board director YH Malegam, also suggested that small loans cannot exceed Rs25,000 and creating of a separate category of non-banking financial companies (NBFC-MFI) for the MFI sector.
"The RBI has invited views/comments of all stakeholders and the public at large on the Malegam Committee report on MFIs... Latest by 13 February 2011," the central bank said.
RBI constituted the committee in October last year in the wake of allegations of overcharging and use coercive recovery practices by MFIs that led to a spate of suicides in Andhra Pradesh. The committee submitted its report on 19th January.
These recommendations, the committee said, should be implemented from 1 April 2011.
The panel also said small loans of up to Rs25,000 could be given to families having an income up to Rs50,000 per annum. On repayment, it said, the borrowers should be given the option of weekly, fortnightly or monthly return of the loan.
Industry body Microfinance Institution Network (MFIN) has termed the recommendations as balanced.
Emkay Global Financial Services Ltd said its net profit for the December 2010 quarter stood at Rs4.24 crore compared to Rs3.82 crore.
The company's total income for the December 2010 quarter increased to Rs35.33 crore from Rs33.83 crore.
On Friday, Emkay Global ended 7.99% down at Rs61.60 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.54% down at 18,395.97 points.
VIP Industries Ltd said its consolidated net profit for the December 2010 quarter stood at Rs30 crore compared to Rs14.8 crore in the corresponding quarter last fiscal, a growth of 103%.
The company's consolidated sales for the December 2010 quarter increased 20% to Rs200.4 crore from Rs167.3 crore, over Q3 of the previous year.
VIP Industries standalone operating profit for Q3 was Rs33.6 crore as against Rs27.9 crore of Q3 in the previous year, a jump of 20%. The company's standalone sales in the December 2010 quarter were Rs194.4 crore compared to Rs159.6 crore for Q3 of previous year, a growth of 22%.
On Friday, VIP Industries ended 1.95% down at Rs587.15 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.54% down at 18,395.97 points.