ASA International set to exit India by year-end

Kolkata: ASA International, the London Stock Exchange-listed global microfinance operator, is in the process of winding down its India operation by the end of this year. ASA said that shrinking margin, pressure on profitability and regulatory complexity are the reasons behind the decision to exit one of the largest microfinance markets in the world.

The global microfinance operator announced that the Reserve Bank of India approved the voluntary surrender of its India subsidiary, ASA International India Microfinance.

"We made significant further progress in winding down our operations in India, including the Reserve Bank of India's approval of the voluntary surrender of ASA India's NBFC-MFI license, bringing us closer to our goal of completing the exit by the end of 2026," ASA said in its business update for the third quarter of the calendar year.


The trouble for the India subsidiary started following Covid, after which the lender saw its financial profile deteriorated and liquidity tightened. Its client base has now reduced to 9,000 as it stopped loan disbursal couple of years back.