Rating agency ICRA lowers MFI asset growth estimate to 12-14% for FY22

Next year to be better; but spurt in Covid-19 cases poses risks

Reflecting the effect of the second wave of Covid-19 infection, rating agency ICRA has revised downwards the estimated growth in assets of NBFC-MFIs to 12-14 per cent in Fy22 from earlier projection of 22-25 per cent.

However, the growth is expected to improve to 18-22 per cent in FY2023, though the recent rise in Covid-19 infections (third wave) poses risk to the estimates. The long-term outlook for non-banking financial companies-microfinance institutions (NBFC-MFIs) is expected to remain robust. This would be driven by the fact that disbursements are expected to have continued in Q3 FY2022, post revival in Q2 FY2022.

Sachin