Microfinance Focus, September 16, 2011: Small Industries Development Bank of India (SIDBI) will be disbursing Rs 1,000 crores to microfinance companies this fiscal year, 20% higher than what it did in 2010-11, said an ET report.

Sidbi chairman and managing director S Muhnot said that the government and Reserve Bank of India have laid out a long term growth path for the MFI sector. The MFIs should see orderly growth in the future.

Muhnot said the government will soon finalise a Rs 100-crore microfinance equity fund for smaller MFIs, in line with what was proposed by finance minister Pranab Mukherjee in the Union Budget. SIDBI however is not keen to take fresh equities in MFIs of its own at this juncture.