I’m back in monsoonal Madras, otherwise known as Chennai. It’s wonderful to be back in India – wonderful, exciting, chaotic India.
This trip is all about getting more funds to socially focused microfinance institutions (MFIs). Many poor people are being sidelined while the local and international banks in India are not lending at the rate these MFIs need. People are on the journey out of poverty but they are being parked by lack of funds.
Over the next week I’ll be meeting with people who want to address that very issue – some foreigners, mainly locals. People who can influence local bank leaders and the government. People who are looking to catalyse local and foreign funds to work alongside money provided by Opportunity donors. And I’ll be meeting with two of our key MFI partners: GO Finance in Chennai and Annapurna Mahila Mandal in Mumbai.
Today’s press here is suggesting that BASIX, one of the large MFIs based in Hyderabad, is about to default on its loans. The state of Andhra Pradesh (of which Hyderabad is the capital) has particular challenges not being experienced elsewhere in India. Still, as I was driving in from the airport, Ranjani (our leader in India), sent me this text: "Welcome back to India and the MF sector here in the most historical phase of its existence!"
It is a key time but I’m optimistic. The signs are not all negative. The central government and the Reserve Bank of India have come out strongly in favour of microfinance that focuses on the needs of the borrower. During the last month, the capital markets have again provided funds to the sector.
Opportunity is working with 18 MFI partners in India which serve over 1.5 million families. Our investment is in their lives.
So come with me on this journey as we make a difference. Follow my blogs here and on Twitter at www.twitter.com/roberddunn
Robert Dunn
CEO
Opportunity International Australia
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