Svatantra Microfin-Chaitanya deal not trailer of M&A wave in MFI space

The big-ticket acquisition of Chaitanya India Fin Credit by Ananya Birla-controlled Svatantra Microfin comes when non-banking finance companies (NBFCs) working as microfinance institutions (MFIs) have increased their market share, overtaking banks.

Also, this deal is not a precursor to a consolidation wave as growth opportunities abound in the sector, according to MFI industry executives and bankers.

This acquisition, though a significant transaction, is not an indicator of mergers and acquisitions (M&A) becoming the norm.