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Improving collections, growth revival provide solace to MFIs: ICRA

Improving collections, growth revival provide solace to MFIs: ICRA
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Fresh surge in Covid infections could dampen MFI asset quality outlook: ICRA


Fresh surge in Covid infections could dampen MFI asset quality outlook: ICRA
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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. ....

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Asset quality headwinds to impact NBFCs performance in FY22: ICRA


Asset quality headwinds to impact NBFCs performance in FY22: ICRA
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ICRA. (Photo: ICRA). Image Source: IANS News
New Delhi, April 14 : Domestic retail-assets under management (AUM) are facing asset quality headwinds which will moderate growth in FY21, ratings agency ICRA said.
These headwinds are also likely to affect NBFCs performance in FY22, following resurgence of the Covid-19 pandemic.
Asset quality pressures because of the Covid-19-related business disruptions unfolded partly in Q3 FY2021 with the 90+ days past due moving up following the closure of the moratorium window in August 2020.
In line with overall sectoral trends, the Retail-NBFC 90+dpd also inched by about 60 bps in Q3 FY2021 and are expected to remain elevated in Q4 FY2021. ....

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