Collections by microfinance institutions (MFIs) in India rebounded to 70-75 per cent in July on gradual easing of restrictions imposed in lockdown to contain the Covid-19 pandemic, according to rating agency Crisil.
The repayments by borrowers had plunged to near zero in April due to the nationwide lockdown to stem the pandemic.
While the bounce-back in July has been faster than that envisaged earlier, improving it to the pre-pandemic levels of 98-99 per cent will be an important monitorable from an asset quality perspective.
Crisil said MFIs are expected to focus on raising additional equity capital over the near to