State-Specific Lockdowns to Hit Microfinance Institutions

Source: Plunge Daily

Microfinance institutions will be negativity hit by the imposition of state-specific lockdowns to stem the further spread of COVID-19 pandemic.

Krishnan Sitaraman, senior director and deputy chief ratings officer at Crisil, said the sector’s collection efficiency has stalled at 90 to 94 percent over the past few months, compared with the pre-pandemic level of 98 to 99 percent. He highlighted that the mini-lockdowns can restrict improvement in the coming months.