Bharat Financial Inclusion reveals stressed loan book

Loan stress and gradual recovery to weigh in near term

On Monday, Bharat Financial Inclusion Ltd (BFIL) revealed rising stress on its loan book. And this is unlikely to be taken lightly by markets.

Cash crunch from demonetisation and worsening repayment in Uttar Pradesh and Maharashtra have started pulling down loan quality. With the states in election mode, the buzz around possible loan waivers has gathered momentum and led to disruption in repayment cycle. Thus, the microfinance body now has Rs 306 crore or 4.5 per cent of loan book where there have been no payments for more than eight weeks. Though collections have started improving, BFIL believes it will take