Up to 10% credit losses for MFIs in COVID years
Deccan ChronicleMumbai: Small loan specialists that cater to people without bank accounts suffered credit losses of up to 10 per cent during the two years of the Covid pandemic, but recovered with stressed asset levels halving with the economy opening up. At a virtual press meet of the Microfinance Institut-ions Network, its CEO and director Alok Misra said the cumulative credit losses for microfinance institutions were 5-10 per cent during the two pandemic-hit years of FY21 and FY22. The head of the self-regulatory organisation said that in FY22, the overall portfolio of 100 lenders including dedicated NBFC-MFIs, banks which do microlending and small finance banks, grew to Rs 2.85 lakh crore, adding that this is a huge jump when compared to Rs 16,000 crore a decade ago. Speaking at the event M. Rajeshwar Rao, deputy governor, Reserve Bank of India, said while microfinance is present in almost all nooks and corners of the country, in terms of geographical distribution, 82 per cent of the loan portfolio is concentrated in ten states.
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