Stressing the role for management graduates in microfinance, Suresh K Krishna , Managing Director of a Bangalore based MFI has urged MBA students to join the sector and take it forward professionally.
In his valedictory speech at the “International Convention on Microfinance” organised by NIAM Institute of Applied Management, Mr Krishna invited the management graduates to join and draw the rules of indigenous management in microfinance in South Asia. A 16-member delegation from Sri Lanka was among the participants at the convention.
On the growth of microfinance in the country, he pointed out that ten years ago the rate of interest charged by microfinance institutions was around 45% which has come down drastically to 24 to 30% at present. He attributed it to the application of technology and cost-effective management techniques followed by Indian MFIs. But management rules are still written abroad, he noted.
“We had to recruit the entire staff, train them and then send them to the field as there was shortage of talent in the sector,” he said recalling his experience ten years ago. with the increasing interest in the sector of late, he hoped that the trend would change soon with more management graduates joining the sector and taking it forward professionally.
Underlining the importance of faith in the sector, he said microfinance loans are given to poor people with no collateral to obtain financial credits from the banks. The expections from the sector as a tool to alleviate poverty are very high, he added.
Terming the microfinance sector as a sunrise industry, he appreciated the increasing interest shown by management schools and urged the graduates to join the microfinance institutions and take them forward professionally. He welcomed the move by many business schools to make microfinance part of their curriculum.
Source: Naagesh Naaraayana, Microfinance Focus Image Source:Siddhartha Chowdri
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