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Member
Registered: Oct 2013
Posts: 7380
लघुवित्त संस्थाहरुलाई जारी गरिएको संशोधित एकीकृत निर्देशन, २०७७ : आयको ८०% मात्र लाभांश वितरण गर्न पाईने, थोक कारोबार गर्नेले ऋणपत्र जारी गर्न सक्ने




Did they increase 80% from 60%?

Kati palta policy change ho. Aru le kamaya ko ta dekhnai na sak ne. All change in policy is the out come of success of some.

Economic development of Nepal is not possible.
Member
Registered: Mar 2018
Posts: 811
@Trader's Word
1. Like it found its old friends 44 & 58.

..Buy and Sell Continues...IF nepse goes up than this scrip will definitely make to new heights....BAKI ISHWOR KO LEELA...
Member
Registered: Mar 2018
Posts: 811
@Trader's Words
1. Price Saturation shall be determined by Market
2. The trading of GBLBS can be summarized as, GBLBS which which arrived with 44 ....had breakfast with 39... later toured with 25...and despite left by all went to trekking solo since yesterday....It may catch some friends in the way...
3. How far its price shall go up shall be further determined by buying revelry to be seen further.

As far as internal matters of company is concerned
4. Bonus is a confirm thing. But how much % bonus is a uncertain.. But minimum 10% can be assumed (10% is a minimum thing and might give even more if it sells its shares of RMDC which NRB has told to sell and we can see it in annual report of GBLBS and also depends on how much profit it will earn in remaining two quarter)... And in subsequent years as well, paid up capital will be increased by bonuses.
5. Company is serious on Merger/Acquisition. Either with SKBBL or Acquistion by RBB. I dont see other options. But gblbs should itself do all the efforts.
6. Employee Expenses is quite a much.
7. Lower interest rate levels in overall credit market will lower expenses will help to boost profits of all MFI. Once its EPS was 52 when cost of fund was 8%.

....Situations are dynamic....One thing which prevails today may be redundant tomorrow.....Internal Matters are policy level stuffs.....If u have made profits in any shares it is always good to book some portion of it...

....BAKI ISHWOR KO LEELA...
« Last edit by पूजीभैरव on Mon Feb 24, 2020 8:42 am. »
Member
Registered: Aug 2015
Posts: 79
Dear Puji G!
As a follower of your thought I have put all the profit from this season to gblbs

As a daily trader I recovered all the losses from 1881 to current level nepse.

Being a trader I have chosen gblbs as a mid term investment scrip because of some reasons :

First one...
Puji Bhirav enlighten me on GBLBS I dont need to go GBLBS web ,annual report to quest infos. You put synopsis of GBLBS in the right way....

Second one..
No matter what paid up or other fundamental and technical targets but its price at least should be above FMDBL,RSDC as a trading point of view .

Third one ....
Besides its huge area coverage its business is getting the better the bigger....

Fourth one...
Comparing fundamental parameters between GBLBS and MERO GBLBS is far better...only the paid up is 13% lesser of MERO but price is 29% bigger than of GBLBS

FIFTH one...
The capital adequacy of GBLBS is just 11.46 where as MERO has 17.47

Sixth one...
I can be attached with micro sector if micro index go massive correction...this is supply based micro where less possibility of huge correction rather than other micro

7th one...
It is better option rather to buy massive supply based banks...this does not mean I wana compare bank vs micro..
« Last edit by Trade wise on Mon Feb 24, 2020 7:48 am. »
Member
Registered: Mar 2018
Posts: 811
@SimrikJee

1. Merger/ Acquistion will is inevitable for Microfinances, not only district level microfinances but even for national level microfinances.
For instance, GBLBS has merger agenda in this AGM and now either it needs to get merged with govt MFI like SKBBL or get acquired by Govt Bank like RBB (Govt Stake converted to RBB Stake). RBB has a plan to launch MFI like NICASIA but may opt for acquistion
If district level MFI dont opt for merger or acquistion than their existence will be lost and if TOO BIG TO FAIL (NATIONAL LEVEL MFI) dont opt for merger or acquistion than their growth will remain stagnant.

2. Common Database of borrowers (LIKE CIC in commercial banks) is very much necessary in MFI to curb the duplication of loans. Effective adoption of this will reduce the lending of overall MFI industry. Also This will reduce the associated inherent business risk.

3. Also adoption of advance MFI core software solutions is important.

4. Most MFI who understand survival is important will also OPT FOR FPO in bullish market. And very soon we will get news of MFI coming with FPO. From Govt MFI to Private Sector MFI should and may come with FPO'S for gaining sustainable financial strength rather than promoter conversion. This is just an envision. A shrewd BOD and serious MFI will obviously opt for it. This statement is not prediction but just expert's opinion.

5. Future is bleak for weak MFI as commercial banks are reaching to every nooks and corners of country. Also govt itself has given non-collateral based lending (As Sahuliyat Loan). If MFI dont emerge and sustain themselves as strong players, the competition in business may shrink them to disappearance.

6. Price of MFI shares and MFI performance is determined by market factors and market participants. Management cant be tied to it.

7. Survival of fittest in coming days.

.....BAKI ISHWOR KO LEELA...
« Last edit by पूजीभैरव on Mon Feb 24, 2020 6:55 am. »
Member
Registered: Dec 2016
Posts: 173
MFIs ko poverty rate ma contribution pakkai hola. Tara, turning point ma aayeko hunu parchha. No doubt, MFI created immense value for stakeholders. Looks like competition has been upped. Many lenders going after same customers. People taking out loans to pay off another lender. Strong/unethical tactics used to make debtors pay the installments.
I think the managements of MFs have to justify the surging stock prices and increase EPS. This doesn't look rosy to me.

1. Mergers
2. Create a common database of borrowers
3. Strong governance, risk analysis.
4. Better training for the staffs.

People may start revolting, bad PR for the industry. People do have other options too, Sahakari and all. NPL may rise significantly.

In the near term, they should print money.
Puji Ji, how would you categorize MFIs besides the district/regional/national level?
How do you think MFIs backed by bigger banks vs old established players vs new and upcoming players?
Which should outperform?
Member
Registered: May 2018
Posts: 18
3. Maximum Lending percentage is 18% capped by NRB.

Earlier MFIs were allowed to determine interest rate on their lending by adding up to 4% administrative expenses
above cost of fund plus maximum of 7% spread with the interest rate ceiling of 18%. However, monetary policy
of 2018-19 changed this provision where MFIs are now allowed to determine interest rate on loan by adding upto
3% administrative expenses above cost of fund plus maximum of 6% spread and the interest rate ceiling (i.e.18%
earlier) is eliminated. As a result of changed NRB provision, MFIs can now pass increased cost of fund to the
borrower which will improve their interest earning capacity.
Member
Registered: Mar 2018
Posts: 811
I have very very closely worked in Banking (Class A,B & D), Hydropower (Above 25MW) & Hotel Sectors (Four Star) as a Consultant & Investor... So i am in a position to break some myths....

Microfinance - Facts & Fictions
...Well Staff of MFI travels daily hundreds of KM in terai, crosses rivers in hills, hikes many kilometers in rural areas to attend the Group Meetings of Borrowers...Its not like fancy commercial banking business where there are tables and chairs and you have classic business conversation with the client....Its down to earth business....
1. Microfinance does not take any collateral and is trust based lending and has very high risk.
2. Microfinance borrows from commercial banks and lends. Now the rate MFI borrows is above base rates of commercial banks which was higher during recent periods.
3. Maximum Lending percentage is 18% capped by NRB.

However there are some faults in the MFI business
1. No CIC systems.
2. Harsh processing/renewal fees.
3. Easy chances of embezzlement.

As in banks private banks have higher lending rates to reap higher profits, whereas govt banks have lower lending rates for sustainable profits... Similarly MFI borrower should avail loans from GBLBS as it is a govt MFI and has lowest lending rates/ processing fees/ renewal fees.....

....MFI has changed lives across the world...It is a good industry....However i am of the opinion that banks should lend to MFI at Maximum 4% and MFI should lend at Maximum at 14%....This will be a policy level decision to make..However again all factors like liquidity might affect the circumstances....Nonetheless that was my opinion about 14%...

...COMING DAYS ARE MORE DYNAMIC. AND MIGHT NEED REVISIONS INDUSTRY PERFORMANCE....BAKI ISHWOR KO LEELA....
Member
Registered: Oct 2013
Posts: 7380
Simrik ji.

My view about micro in this thread.

Today, I have less than 1000 kitta of micro.


There are some bad micro finance company (as per media), but also, in my view, after remittance, micro finance is the second reason, poverty in Nepal is down.
« Last edit by The Rising Sun on Wed Feb 19, 2020 7:47 pm. »
Member
Registered: Mar 2014
Posts: 163
Friends, it is not better to be overoptimistic on microfinance sector. Look at
their interest rate. Is around20% interest rate is justificable for under preveliged
people where rich people are using loan around 14% from commercial banks.
This fact is slowly realizing in local level and many local bodies are probihiting
microfinances in their areas. Rather, the local people groups and cooperatives are
starting colatral free loan at the cheap rate. The local level branches of commercial
banks will also start microfinancing. In this scnerio investing on micrro finances is not
prudent decision .Limited share number is not any fundamental for investors.
Member
Registered: Mar 2018
Posts: 811
Microfinance takes loan from commercial bank
Microfinance gives non-collateral based loan to group of 5 peoples on personal gurantees
Microfinance also gives COLLATERAL BASED LENDING to peoples

YES MFI ALSO GIVES COLLATERAL BASED LENDING

MFI gives loan to under privileged peoples (Shramik Varga)
And these shramik varga are most sincere population in Nepal
Homage to them

There is big scope for MFI
For Instance, Around 50000 pensioners, randomly distributed wants loan but they have no collateral but have pensions to serve the loan (I know this because recently they approached banks requesting banks to develop product based on their pensions)
Those can form groups and take loans from MFI

Similarly there are many other sections of population who exclusively needs MFI

As interest rate goes down
1 - MFI cost decreases
2 -MFI Income have normal growth
3 - Big Profits
5 - Increased EPS
6 - Surge in Price
7 - Buying National Level MFI like GBLBS, NUBL, Chimek can deliver gains

....BAKI ISHWOR KO LEELA...
Member
Registered: Oct 2013
Posts: 7380
microfinance gives loan at high rate but most of the borrower are making good money.

govt projects are giving loan at zero interest and all borrowers are broke and/or criminals.
Member
Registered: Oct 2013
Posts: 7380
:D
Member
Registered: Oct 2016
Posts: 268
Hasaunu bhayo.

Nepse is such a platform jatti paisa vaye pani pugdaina cause returns ramro cha.

Hope all gets good returns in nepse

Happy investment
Member
Registered: Oct 2013
Posts: 7380
How does the monetary policy benefit microfinance companies?
.http://sharesansar.com/c/how-does-the-monetary-policy-benefit-microfinance-companies.html


- k garne. Most of the investors/traders are dumb. They look for right and bonus. Does not understand impact of policy in Business.

I wish I could find unlimited credit so that I could invest for long term. Some body introduce me with some criminal who is trying to hide money. I will hide their money and also give them 10% interest.
Member
Registered: Oct 2013
Posts: 7380
युवा रोजगार कार्यक्रमको प्रभावकारीता न्युन
http://ktv.ekantipur.com/news/2017-03-31/20170331172948.html


those retards who been talking bad about Microfianance should shut up you are fking retards and know nothing about nothing so stop filling news paper with vomit.

may be you retards dont understand what i was trying to say: so called youth employment give loan at 0% interest and micro finance give loan at 20%,

those who took loan from youth employment go on to become criminal and dont pay back loan and those who take loan (most of the) from micro become millionaire.

which means interest has less to do with future success.

look retards, micro dont give loan, they mainly teach people who to make money out of money that is why micro and those who take money from micro are successful while youth employment and those who borrow from them are all criminals.

so shut the f off and stop filling newspaper with garbage.

dont make me, micro, micro borrower angry with your non sense. any person who are happy with your article are retard governor, and other criminals.
Member
Registered: Oct 2013
Posts: 7380
Governor should make zero change in banking policy and reverse what ever he has done in last 1-1.5 year.

If he wants to make any change, change in exchange rate-

0.1% commission for buying foreign currency.

&

3% commission on selling foreign currency.

And make sure illegal trading be punished harshly.
Member
Registered: Oct 2013
Posts: 7380
I also think micro is great but Governor has to go.

He ego is to destroy micro.

When he became Governor, I never saw him as qualified, but he was positive about Share market so i liked him for some year, but today, he turned out to be all- bad for whole banking, bad for share market and incompetent.

He has no idea how his little looking decision make a huge long term impact to the economy, banks, share market.

He is so retard, in the one hand he says, ups and downs in share market is normal, and another he changed margin lending when market was positive.

He hates micro price so he targeted its business.

He has zero I idea how micro works.
Member
Registered: Oct 2016
Posts: 268
I still believe microfinances is the best right now. Huge growth, huge profits. Spread doesn't affect the big ones like cbbl, rmdc, skbbl( this is wholeseller), swbbl.

People panicked. Well good for them the prices are down now. aba long term lai kinne. 5+years ekai choti 200-300% line.

happy investment
Member
Registered: Oct 2013
Posts: 7380
लघुवित्तले बनायो महिलालाई करोडपति
http://www.annapurnapost.com/news/60497
Member
Registered: Oct 2013
Posts: 7380
लघुवित्त कम्पनीहरुले सञ्चालन खर्चभन्दा अधिकत्तम ७ प्रतिशत बढि मात्र कर्जाको व्याज दर लिन पाउँने राष्ट्र बैंकले व्यवस्था गरे गरेपनि लागु गर्न बाँकी छ । सञ्चालन खर्चमा के के शिर्षक समावेश गर्न पाउने भन्ने ढाँचा बनाउन पनि राष्ट्र बैंकले गृहकार्य गरिरहेको छ ।
http://aarthiknews.com/2016/09/22/65873

-- good news for Micro.

Add cost (some topic)-
Documentation
Training
Field Visit
Insurance
Delay Charge
Risk factor
ETC ETC
Member
Registered: Oct 2013
Posts: 7380
Gundruk Ji, for me too, SWBBL is the most undervalued at this time/CBBL is one of the good too but dont follow much.

I believe SWBBL will give around 50B this time.
When NRB makes a change, I think it will grow the most.

When I read about NRB changing policy, I added a few hundred more at 2700 then price crashed the next day to 2500
(: .

I am holding for a long time.

About my view regarding market:
http://www.sharesansar.com/forum/topic.php?id=5170
Member
Registered: Feb 2016
Posts: 60
Dear Rising Sun ji,

Thank you very much for that insightful reply. Much appreciated. Let's hope that NRB has the brains to come up with a decent amendment.

In terms of MFs, two of my favorites are CBBL and SWBBL. Most of the others are overvalued in my opinion. I bought SWBBL at 2800 after which it drooped soon afterwards. I think it will provide handsome dividends though - at least this year.

Would you mind commenting a little on the overall market scenario at the moment? I agree that the rise in NEPSE was too sudden and fast (typical of a strong bull with people going crazy/getting greedy). Yet I feel that the bull market is not done. Especially now that it is time to announce dividends and the fact that most BFs have increased their profits handsomely and PE ratios are not completely out of whack for most companies.

Thoughts?

G
Member
Registered: Oct 2013
Posts: 7380
............ cont.

What happens if NRB dont change their 7% spread rate and dont let micro finance take their cost by increasing service charge?

Actually, with 7%, they can make a lot of money, but they will change the way they do business.

Instead, of doing the business (Like I said Before) they will be force to do business like banks.------------------ open office, wait for customer and provide loan.



Then what happens,
Like I said before, they get their loan paid cause of the service they provide, not cause, borrower thing, they have to pay back loan.
SO, if there is no service they provide, no personal connection, then borrower wont pay back loan like many other Govt. 0% collateral free loan.

The what happens,
Micro finance will collapse due to bad debt, there wont be 25% interest loan to villagers. then there will be war lord who will provide villagers with 200% interest loan, then villagers will commit suicide, then whole economy of NEPAL will collapse.

Micro finance not just provide loan @ 25% interest, they are the second reason, economy of village is growing- after remittance.

If NRB destroy MICRO FINANCE with unworkable policy listening to evil spirit/littleman - media, jealous investor , it wont just destroy Micro finance, but kill villagers and ultimately destroy NEpal's economy.
Member
Registered: Oct 2013
Posts: 7380
THE MOST IMPORTANT POINT: Micro finance is less of a bank and more of a company that teach people how to make money out of money.

Like we all know, govt provided (probably @ 0% interest) uba swo roj gar loan, its interest is close to zero or zero.

Since, its interest is zero, is not it suppose to be, all the loan suppose to be paid back by the borrower, but how much is paid back? I guess close to zero.

People in the village, 25% interest is not big, what is big is, they need loan, skill to make money, motivation, forming group, many services needed to do business, connection etc etc and all those services are provided by Micro Finance.

No body (95%), wont pay back loan if you dont take collateral.
And still, borrower (most of them), pay back loan to micro finance cause not cause they provide loan, more of cause they teach them how to make money out of money, cause of personal relation, personalized service.

And all those service cost money, that is why, interest of MICRO FINANCE is very high compared to banks.

cont.......

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