NABARD launches NABFINS to deal microfinance sector
Hyderabad | Tuesday, Jul 3 2007 15:14:35 IST
After the successful pioloting of the Self Help Group Bank Linkage Programme, the National Bank for Agriculture and Rural Development is all set to launch 'NABARD Financial Services' (NABFINS) to deal with various issues facing the Microfinance sector in the country.
Talking to newspersons here today, NABARD Chairman Y S P Thorat said the non-banking finance company with an authorised capital of Rs 100 and an issued capital of Rs 20 crore would be started in Banglore on a pilot basis to deal the issues in the Microfinance sector. The major problems were lack of transparency in accounting disclosure, high transaction costs and higher rate of interest, he said. In the second phase, NABFINS would be started in Andhra Pradesh and Tamil Nadu and later in other parts of the country, NABARD Managing Director K G Karmakar said.
NABARD would hold 51 per cent of the equity in NABFINS, while banks and state governments would contribute to the remaining portion of the equity, they said.
-- (UNI) -- 03MS21.xml
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