Microfinance Industry Most Vulnerable to Lockdown and Moratorium

Stocks in the microfinance space — whether CreditAccess Grameen or Spandana Sphoorty — and banks with high microfinance institution (MFI) exposure, such as Bandhan Bank, have shed 46–60 per cent in the past one month.

This, despite managements of Bandhan Bank and CreditAccess Grameen repeatedly trying to assuage investor concerns on their business outlook and explaining why a countrywide lockdown may only be a temporary hit on their financials.

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