Bankers Trust:

MFIs need to alter business model

India’s finance minister Pranab Mukherjee says the government doesn’t want to “strangulate” the microfinance industry that is in the business of giving tiny loans to poor people. At the same time,he asserts that the industry should bring down interest rates to a “reasonable” level and stop using “coercive methods” to recover loans. Mukherjee is also in no hurry to act.