Some 14 years back in 2010, then a fledgling microfinance industry, was knocked down by a spate of suicides by borrowers of in Andhra Pradesh. Coercive recovery tactics of some microlenders were blamed for the fiasco that eventually led the state, which was home to the highest number of microfinance institutions (MFIs), to promulgate an emergency ordinance.All hell broke loose after what the industry termed as a draconian rule came into force. It severely restricted microlenders’ operations as major business restrictions were imposed on collections and field visits. The blaze was so harsh that it spread even beyond the borders of Andhra. The collection rates fell sharply from 99 percent…
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Banking Central | The making of Bandhan Bank and the end of an era as Ghosh plans to retire
