Fresh surge in Covid infections could dampen MFI asset quality outlook: ICRA
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Synopsis
India reported more than 2 lakh fresh Covid infections on Thursday, with lockdown and weekend curfew announced in various states including Maharashtra and New Delhi. The second wave is likely to dent the sluggish recovery in consumer and corporate confidence.
Agencies As a result, the collection efficiency improved to nearly 102% in December 2020.
Renewed surge in coronavirus infections in India could further disrupt asset quality scenario for the micro-finance industry, domestic rating agency ICRA said on Thursday. The MFI industry which is already reeling under Covid related disruptions could see credit costs rise to 6-7% from 1.5% in FY2020.