The 9th Eastern India Microfinance Summit 2025 to be organized by AMFIWB in Association with M2i, Equifax, MFIN & Sa-Dhan

Title of the Summit: Microfinance - On the path to $5 trillion Economy through Women Entrepreneurship & Financial Empowerment.

Kolkata, 2nd January 2025: The Association of Microfinance Institutions – West Bengal (AMFI-WB) will be organizing the 9th Edition of Eastern India Microfinance Summit 2025 in Association with M2i, Equifax, MFIN & Sa-Dhan. This year the theme of the Summit is Microfinance - On the path to $5 trillion Economy through Women Entrepreneurship & Financial Empowerment. The 9th Eastern India Microfinance Summit 2025 will be held on 10th of January 2025 from 9.00 AM onwards at Biswa Bangla Convention Centre, HIDCO, New Town, Kolkata.

Microfinance is widely recognized as a powerful tool, contributing to and propelling towards achieving sustainable development goals. Its multifaceted roles encompass some of the key aspects instrumental in fostering sustainable development. Through financial inclusion, microfinance democratizes access to capital, empowering marginalized communities and amplifying economic participation. It contributes to poverty alleviation, offering avenues for entrepreneurship and job creation. Microfinance also champions gender equality by providing women with access to financial services. As a catalyst for change, microfinance intertwines financial empowerment with social empowerment, paving the way towards a more inclusive and sustainable future. This year's session is expected to be attended by the MFI practitioners, regulators and funders to discuss most pertinent issues facing the sector.

India’s ambitious goal to achieve a USD 5 trillion economy by 2027 places key emphasis on the contribution of its three broad sectors: services, manufacturing, and agriculture. Of the targeted GDP, the service sector is expected to contribute USD 3 trillion, while the manufacturing and agriculture sectors are projected to collectively contribute USD 2 trillion. Microfinance and other regulated financial entities are poised to play a crucial role in achieving this target by supporting the financial needs of these sectors, particularly manufacturing and agriculture with special focus on women as entrepreneurs.

The landscape of India's financial sector is rapidly evolving. Traditionally served by Banks, the financial system has seen the rise of innovative and alternative intermediaries, such as Microfinance institutions (MFIs), Fintech companies, Digital Service providers and a completely new set of innovative and efficient models and products. These organizations are enhancing the flow of credit, financial and other services, particularly to underserved segments of the population, contributing to growth across multiple sectors. The use of advanced technologies in digital financial services, Generative AI is transforming the way services are reached, financial transactions are processed and financial inclusion is achieved, significantly boosting the financial sector’s contribution to India's economic growth.

An interesting aspect of this financial evolution is the adoption of digital financial services by the base of the pyramid and underserved communities, including those in remote areas. By providing access to financial services, technology is fostering new livelihood opportunities, improving family incomes, social security and offering better access to essential services such as healthcare and education. Additionally, these developments are helping build resilience to climate risks and natural disasters, which are becoming more prevalent in India.

The 9th Eastern India Microfinance Summit in 2025, themed "Microfinance – On a Path to USD 5 Trillion Economy through Women Entrepreneurship and Financial Empowerment," presents a critical platform for practitioners across various sectors—Banking, Microfinance, Investors, Insurance, Fintech, and Health services—to come together. The summit will provide an opportunity for stakeholders to share insights and collaborate on strategies to contribute toward the overarching goal of building a USD 5 trillion economy, with a special focus on women’s entrepreneurship and financial empowerment as drivers of this transformation. Besides, will provide an opportunity to identify common opportunities for partnership.

Some of major eminent personalities, who would speak at the summit are:
1. Shri Ajit Kr. Maity, Chairperson, AMFI-WB and Chairman VFS Capital 2. Shri Avirup Sarkar, Chairman of the Fourth State Finance Commission of West Bengal, the Chairman of West Bengal Infrastructure Development Finance Corporation, Vice Chairman of West Bengal Industrial Development Corporation, a member of the West Bengal State Planning Board and a past member of the Group of Advisors to the Union Finance Minister on G20 matters. 3. Dr. Sudip Kumar Sinha, Secretary and Nodal Officer, IAS, Government of West Bengal 4. Shri Chandra Shekhar Ghosh, Founder, Bandhan Bank Ltd and and Founder Secretary, AMFI-WB 5. Shri. Partha Pratim Sengupta, MD and CEO, Bandhan Bank Limited 6. Shri Aditya B. Chatterjee, MD & CEO, Equifax, Mumbai 7. Dr. Alok Mishra, CEO, MFIN. 8. Shri Jiji Mammen, Executive Director, Sa-Dhan 9. Shri K. Paul Thomas, MD and CEO, ESAF Small Finance Bank. 10. Ms. Carol Furtado, Executive Director, Ujjivan Small Finance Bank 11. Shri. H P Singh, MD & CEO, Satin Creditcare Network Limited 12. Shri George Jhon (Bobby), Executive Director, ESAF Small Finance Bank. 13. Shri. Sudatta Mandal, DMD, SIDBI, or, Shri. Prakash Kumar, DMD,SIDBI, or, Shri. Satyaki Rastogi, CGM, SIDBI, or, Shri. S N Singh, CGM, SIDBI - Mumbai Office 14. Smt. Kalpana Sankar, MD, Belstar Microfinance 15. Shri K. B. Balakumaran, ED, Belstar 16. Shri. P K Bharadwaj, CGM, NABARD, Kolkata (Subject to Confirmation) 17. Smt. Deepmala Ghosh, GM, NABARD, Kolkata (Subject to Confirmation) 18. Smt. K S Jyotsna, CGM, RBI Mumbai or Regional Director RBI Kolkata or CGM RBI Kolkata or DOS CGM Kolkata 19. Shri. Sadaaf Sayeed, MD, Muthoot Finance, New Delhi 20. Mr. Manoj Nambiar, MD, Arohan Financial Services Ltd. 21. Shri. Ganesh Narayanan, CEO, CAGL & Mr. Firoz Anam, Chief Risk Officer, CAGL 22. Shri Kartick Biswas, MD, Uttrayan Financial Services Pvt. Ltd. and Treasurer, AMFI-WB 23. Dr. Kuldip Maity, MD, VFS Capital Ltd and Secretary AMFI-WB 24. Shri Anjan Dasgupta, MD, ASAI 25. Shri Alok Biswas, MD Janakalyan Financial Services Pvt. Ltd. Or Shri Sunanda Mitra, Chairman, Janakalyan Financial Services Pvt. Ltd. 26. Shri Abhijit Ray, MD, U.C Inclusive Credit, Bangalore 27. Shri. Pramod Kumar Vijayvargia, GM, SIDBI, or , Shri. Siddhartha Mandal, DGM, SIDBI – Kolkata Office 28. Shri Vivek Tiwari, MD, Satya Micro Capital Ltd. 29. Shri Sudipto Roy, MD & CEO, L&T Finance, Mumbai, or, Smt. Sonia Krishnankutty, Chief Executive – Rural Business Finance, Customer Service & Operations, L&T Finance, Mumbai 30. Shri. Manoj Kumar, CGM, IDBI Bank, or, Shri. Prasad Prakash Revdekar, GM, IDBI Bank – Mumbai Office 31. Shri. Ashutosh Kumar, National Head – Inclusive and Social Banking | Business Monitoring Team, YesBank, Mumbai 32. Shri Deepak Srinivas, Executive Vice -President, Kaleidofin Pvt. Ltd, 33. Shri. Praveen Kumar Saha, Chief Business Officer, Inclusive Banking, Unity Small Finance Bank, Mumbai 34. Shri. Ritesh Gupta, Head – Corporate Coverage – West & East Wholesale Banking Group, IDFC First Bank, Mumbai 35. Shri. Deepak Alok, Research Partner, M2i 36. Shri Tamal Bandapadhyay, Consulting Editor, Business Standard and Senior Advisor, Jana Small Finance Bank. 37. Senior Leader, CMS 38. Manish Rathi, CEO & Director, Nelito 39. Shri Rahul Johri,Chairman cum MD,Vector Finance Private Limited

Discussions in the 9th Eastern India Microfinance Summit 2025 will focus on the following themes:

Inaugural session

The Inaugural Session of the 9th Eastern India Microfinance Summit 2025 will deliberate upon the following key issues relevant to the theme of the Summit, “Microfinance - On the path to $5 trillion Economy through Women Entrepreneurship & Financial Empowerment”.

Role of Un-Organized Sector and its contribution to GDP of India…… Microfinance Role to Unorganized sector is very significant there by will play very important role toward the contribution of $5trillion Economy of India

  • The agriculture sector employs 45% of the workforce and contributes 15% to the national GDP.
  • The non-agricultural sector in India—comprising industries like services and manufacturing—contributes around 85% of the country's GDP.
  • 2/3 of the workforce employed in the unorganized sector is engaged in low-productivity work.

Session 1: Strengthening Creditworthiness: The Impact of Credit Bureaus in Microfinance

Session Overview: Credit bureaus are pivotal in the microfinance industry, enabling accurate credit assessments that help mitigate lending risks. For borrowers, maintaining a strong credit history can open doors to essential financial services, promoting financial inclusion and stability. This session will explore best practices in credit bureau operations and the significant impact these practices have on supporting both microfinance institutions (MFIs) and their clients. Industry experts will discuss effective strategies and standards for reliable credit evaluations, empowering MFIs to make informed lending decisions while offering clients sustainable financial pathways.

Key Discussion Points:

  • How do credit bureaus contribute to accurate credit assessments, and what role do they play in mitigating risks for MFIs?
  • What are the best practices for maintaining and improving credit bureau operations in the microfinance sector?
  • How can a strong credit history empower borrowers, ensuring they have continued access to essential financial services?
  • What standards and regulatory measures are necessary to ensure that credit bureaus provide reliable and fair credit evaluations?
  • How can MFIs leverage credit bureau data to make informed lending decisions, supporting both financial inclusion and long-term client stability?

Session 2: Digital Transformation in Microfinance: Potential for Enhancing Efficiency, Security, and Client Protection

Session Overview:As technology reshapes the financial landscape, microfinance institutions are increasingly adopting digital solutions to minimize operational risks, improve process efficiency, and elevate customer service standards. This session will delve into the transformative role of technology in the microfinance sector, focusing on how digital tools can streamline operations while safeguarding the interests of clients. The discussion will highlight practical approaches for fraud prevention, ensuring that clients are protected within a digital-first framework.

Key Discussion Points:

  • How can microfinance institutions leverage technology to streamline operational workflows, reduce errors, and improve decision-making processes?
  • What are the key digital tools that can enhance customer service and build stronger client relationships?
  • What are the essential measures for fraud prevention in a digitalized microfinance environment, and how can institutions ensure clients’ data security and privacy?
  • In what ways can technology-driven solutions reinforce institutional resilience, promoting both efficiency and trust within the sector?
  • How can microfinance institutions balance the adoption of technology with accessibility, ensuring that digital tools remain inclusive and beneficial for all client segments?

Session 3: Navigating India’s Regulatory Landscape: Aligning Microfinance Growth with Stakeholder and Client Expectations

Session Overview:India’s regulatory and policy framework for microfinance has been instrumental in advancing financial inclusion, particularly for the unorganized sector and women clients. By supporting accessible, affordable, and secure financial services, regulatory bodies like the RBI, SROs, and other governing authorities have set the foundation for sustainable sector growth. This session will examine recent regulatory changes, the challenges of compliance, and the sector’s collaborative efforts with regulators and stakeholders. Panelists will discuss how these frameworks support responsible growth, while focusing on stability, fair pricing, and the sector's mission of fostering financial inclusion.

Key Discussion Points:

  • What are the recent regulatory changes affecting the microfinance sector, and how are they shaping the operational landscape?
  • How can microfinance institutions navigate compliance in an evolving policy environment to maintain both sustainability and adherence to sector goals?
  • What role do SROs and regional associations play in fostering a transparent, fair, and enabling environment for the sector?
  • How can collaborative approaches with regulators, stakeholders, and competitors support a healthy operating environment with shared objectives?
  • What are the best practices for risk management, client servicing, and debt recovery in a volatile landscape? How can MFIs handle fraud challenges while ensuring accessibility?

Session 4: Innovating Financial Services for Low-Income Communities: Customized Solutions and Strategic Partnerships

Session Overview: Financial inclusion requires a dual focus on product innovation and strategic collaboration to meet the evolving needs of underserved communities. This session explores how tailored financial products, strategic partnerships, and technology-driven solutions can enhance outreach, efficiency, and resilience in serving low-income populations. Discussions will cover the importance of empowering clients through digital literacy, leveraging credit bureaus for comprehensive credit histories, and utilizing colending models and fintech collaborations to drive sustainable financial inclusion.

Key Discussion Points

  • How can service providers design innovative and efficient financial products tailored to the unique needs of low-income groups?
  • How can partnerships between MFIs, fintech, and banks streamline processes, reduce costs, and enhance client experience?
  • How can partnerships between MFIs, fintech, and banks streamline processes, reduce costs, and enhance client experience?
  • How do co-lending models and the regulatory sandbox foster innovation and expand financial outreach to underserved markets?
  • What strategies can address funding challenges for MFIs and ensure resilience during economic downturns?

In West Bengal, this industry (among the AMFI-WB Members i.e. MFIs and Banks)) directly employs at least 33,000 people and most of them are from low income families with limited educational qualifications with total investment of 32000 Crores as loanoutstanding as on September 2024. The MFI segment created huge micro and small entrepreneurship in the state, covering more than 7.8 million women who are mostly from the underprivileged segment. The government needs to be more proactive in terms providing safeguards to this industry in matter of issuance of trade license, shop and establishment registration and other compliance processes. We may seek a single window option for trade licenses and shop and establishment for a one time fixed fee per branch.

Scenario in Eastern India as well Pan India level:

As on 31 March 2024,

Universe highlights

  • As on 31 March 2024, 82 NBFC-MFIs hold the largest share of portfolio in micro-credit with Gross Loan Portfolio (GLP) of Rs 1,38,310 Cr, which is 39.7% of total micro-credit universe
  • Banks are second largest provider of micro-credit with a GLP of Rs 1,19,113 Cr, accounting for 34.2% to total industry portfolio
  • SFBs have a total GLP of Rs 57,828 Cr with total share of 16.6%
  • The overall YoY (31 March 2022 to 31 March 2023) growth of GLP is 22.0%
  • As on 31 March 2023, 3.9 Cr clients have loan outstanding from NBFC-MFIs, which is 20.0% higher than clients as on 31 March 2022.
  • The Asset Under Management (AUM) of MFIs is Rs 1,31,163 Cr as on 31 March 2023, including owned portfolio Rs 1,07,232 Cr and managed portfolio (off BS) of Rs 23,931 Cr. The owned portfolio of MFIN members is about 77.5% of the NBFC-MFI universe portfolio of Rs 1,38,310 Cr
  • On a YoY basis AUM has increased by 38.7% as compared to 31 March 2022 and by 15.7% in comparison to 31 December 2022.
  • Loan amount of Rs 1,30,563 Cr was disbursed in FY 22-23 through 3.1 Cr accounts, including disbursement of Owned as well as Managed portfolio. This is 59.3% higher than the amount disbursed in FY 21-22.
  • Average loan amount disbursed per account during FY 22-23 was Rs 42,010 which is an increase of around 12.9% in comparison to the last financial year.
  • As on 31 March 2023, the borrowings O/s were Rs 97,420 Cr. Banks contributed 60.3% of borrowings O/s followed by 22.2% from Non-Bank entity, 9.3% from AIFIs, 4.1% from other sources and 4.1% from External Commercial Borrowings (ECB).
  • During FY 22-23, NBFC-MFIs received a total of Rs 74,787 Cr in debt funding, which is 59.2% higher than FY 21-22. Banks contributed 69.2% of the total Borrowing received followed by Non-Bank entities 21.0%, AIFIs 6.7%, ECB 1.8% and Others 1.3%.
  • Total equity increased by 25.4% as compared to end of Q4 FY 21-22 and is at Rs 26,332 Cr as on 31 March 2022.
  • Portfolio at Risk (PAR)>30 days as on 31 March 2023 has reduced to 4.0% as compared to 9.7% as on 31 March 2022.
  • MFIs have presence in 27 states and 5 union territories.

Some of the key discussion points to understand the microfinance industry nationally as well in Eastern India Perspective:

The following are the most important issues to consider to further increase the resilience of the microfinance sector and creating enhanced value for the under privileged sections of the society.

1. The government should further increase the funding and liquidity support to the sector particularly the smaller MFIs. 2. The interest rate calculation formula specified by the RBI will prevent lenders from enjoying huge margins and especially banks, which have low-cost deposits, will be discouraged from charging the same rate as the MFIs. But should insurance charges be included for pricing micro loans? Most of the customers in this segment are not insured and death rates are high. Inclusive of insurance charges, the interest rates will be high, which may not be politically palatable. The calculation of internal rate of return, or IRR, for a lender should exclude insurance though it should be mandatory to declare it. 3. Finally, cash collections of micro loans run into thousands of crores a month. Shouldn’t the RBI look for a differential pricing for digital offerings? That will help speed up digitisation in this segment. 4. Apex financial institutions like SIDBI and NABARD need to further enhance equity and loan support to the MFIs particularly the smaller ones. 5. Investment in client education needs to be enhanced to increase productivity of their businesses and enable them to take advantages of the available opportunities 6. There is scope to further support the MFIs in improving their capacity to develop more products and understand needs of the clients better. 7. The Government should further increase the funding and liquidity support to the sector particularly the smaller & medium sized MFIs like continuation of CGSMFI scheme for another 2 years. 8. Apex financial institutions like SIDBI, NABARD and MUDRA need to further enhance equity loan and long term sub-ordinate debt support to the MFIs particularly the smaller ones in line with IMEF Fund as earmarked in earlier budgets. 9. More & More ‘Financial Literacy Workshop’ for Clients may be organized so that they can embrace the digital transactions more freely. Capacity Building support is also required. 10. It is high time for the Government to create ‘Microfinance Regulatory Authority’ exclusively for regulating and promoting NBFC-MFIs. 11. Creation of an ‘Autonomous Finance Corporation’ for MFIs that may address the problems of liquidity of Small & Medium sized MFIs 12. Creation of special window by the Banks for funding of NBFC-MFIs & special budgetary allocation for this purpose. 13. Regulators have prescribed guidelines for responsible lending but there is no such guidelines related to responsible borrowing. Code of Conduct for responsible borrowers may also be framed forthwith. 14. Rating & Grading agencies must formulate separate guidelines of rating / grading for Small & Medium sized MFIs. 15. A dedicated funding facility and providing MFIs some scope for diversification will help expand market outreach.