MFI delinquencies to increase by June: Acuite Ratings

    20

    New Delhi, May 10 | Delinquencies of microfinance institutions (MFI) are likely to increase by June amid the severe Covid crisis, according to Acuite Ratings & Research.

    “Acuite expects 30 day delinquencies to increase at least by 30 per cent by June 2021 even if the pandemic intensity starts to taper down from the middle of May and may more than double if there is no taper down of the pandemic intensity and the local lockdowns continue till end of Q1FY22,” said a report.

    It noted that the impact of the second wave has not only been in the large cities but also in the hinterland, sparking a crisis in healthcare infrastructure. While no national level lockdown has been contemplated yet as in last year, the virulence of the second wave has led to lockdowns at local levels in various states and the intensity of such lockdowns may increase if the case load continues to increase further.

    This has already started to impact the improving trend in collections and disbursements particularly from the second half of April 2021.

    Given the wider coverage of the virus across semi urban and rural areas in this cycle, the risks of a sharper impact on the lives and livelihoods of the micro-finance borrower is higher in the near term, it said.

    Source: IANS

    Post Disclaimer by BhaskarLive.in

    The information contained in this post is source form the news agency or PR agency. We do not take any responsibility of accuracy of information. We have not made any modification or changes in original source content. This information only for general information purposes only. The information is provided by BhaskarLive.in and while we Endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.

    Next Story

    Weekly Fundamental Market Outlook

    Weekly Fundamental Market Outlook

    Indian share market posted its first weekly gain in Jun by rising 2.7%.

    This week, the Indian Stock Market rebounded strongly and ended with first weekly gain of 2.7% in June as a drop in commodity prices offered some relief from broadening inflationary pressures. Copper prices, which are often seen as a bellwether for economic output due to their wide range of industrial and construction uses, are heading for their worst week in a year, while oil prices have dropped over concerns of slumping demand.

    While the US recessionary fears are still at the forefront, but the slide in commodity prices has lifted the mood of stock market.Cheaper oil is usually beneficial for oil-importing countries such as India.

    Domestically, on sectorial basis, Auto and FMCG are the top gainers, while Metal index is the top losers. On stock basis, Hero MotoCorp, Eicher Motors, Hindustan Unilever, Maruti Suzuki and M&M were the top gainers and Tata steel, UPL, Reliance Industries, hindalco Inds and Coal India were the top losers.

    In the next week, investors will keep a close eye on crude oil price movement, commodity prices, US economic activity and the geopolitical development.

     

    Post Disclaimer by BhaskarLive.in

    The information contained in this post is source form the news agency or PR agency. We do not take any responsibility of accuracy of information. We have not made any modification or changes in original source content. This information only for general information purposes only. The information is provided by BhaskarLive.in and while we Endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here