An extended run of setbacks for microfinance lenders might finally be ending.
Non-banking financial companies microfinance institutions (NBFC-MFIs) have in recent times managed a number of challenges like unfavourable macro conditions, unforeseen calamities and policy measures like demonetisation; while more recently the Covid-19 pandemic seriously hampered their asset quality.
The second wave of the pandemic, in particular, had affected the earning capacity of borrowers from low-income groups, to which these lenders typically cater to.
As a result, the sector witnessed a relatively higher restructuring compared with other asset classes - the only option to support its borrowers at that time.
Most of the larger NBFC-MFIs lived up to the challenge, focusing on maintaining adequate liquidity, provisioning and capitalisation buffers.
Then in March this year, the Reserve Bank of India came out with new harmonised lending norms that CRISIL Ratings expects will level the playing field for NBFC-MFIs to some extent.
The landscape is now starting to look up for NBFC-MFIs.
But some questions remain. Has the pandemic worn down the players’ credit profiles? Has the asset quality deterioration cycle bottomed out? Will the recent regulatory changes boost or impede the sector’s growth prospects?
In this milieu, we invite you to participate in our webinar on the microfinance sector on July 5, 2022, where we will deliberate on some of these aspects.
At the event, our experts will make a presentation on:
The outlook on growth and asset quality
Fund raising trends and changes in resource profile
Earnings and Capitalisation trends
Impact of recent regulatory changes
The webinar will be followed by a panel discussion with leaders from the industry, and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
