G Dasaratha Reddy, Managing Director of Future Financial Services informed that the microfinance institution (MFI) plans to repay Rs 110 crore of loans restructured in 2011 and it is discussing the same with banks.
If the plan materialises, this would be the first MFI
in the country to opt out of corporate debt restructuring (CDR), nearly two years after it agreed to the exercise.
The company strengthened its financial position through diversification of operation in Karnataka and Tamil Nadu.
The firm feels that if it repays part of the restructured loan, it would be able to secure fresh loans from banks and invest the money in growing its business further.
Following the restrictions imposed by the Andhra government on private micro-lending in the state in October 2010, five of these entities — SHARE Microfin, Asmitha Microfin, Spandana Sphoorty Financial, Trident Microfin and Future Financial Services – had restructured close to Rs 5,000 crore in loans in 2011.
Two more – Bhartiya Samruddhi Finance and SWAWS Credit Corporation – had opted to do so in 2012. Future still has a fourth of its Rs 100-crore loan portfolio in Andhra.
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