Micro Finance Sector Continues To Be Resilient With Stable Collections: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We met Dr. Alok Misra, Chief Executive Officer and Director of MicroFinance Institutions Network, to understand the underlying business trends and key developments in non-banking financial company-micro finance sector. Takeaways:Amid news of mounting regulatory concern over NBFC sector, NBFC-MFIs are better placed given microfinance industry is already operating on cashless disbursements post demonetisation and FY24 year-to-date growth remained around 13%.While weighted average lending rate for top-17 players has increased by 200 basis points to 23.7% since spread cap removal, the increase was largely due to increase in cost of funds as well as on account of losses incurred during Covid. Some players being outlier might have attracted regulator attention but most MFI players are operating as per MFIN’s code of conduct with board approved pricing policy. Total Punjab portfolio stands at Rs 59 billion with exposure to highly impacted districts at around Rs 8 billion; collections have either improved or stabilised since December 2023 levels..Click on the attachment to read the full report:.HDFC Bank To Paytm: Investors Cautious On India Financial Stocks, Says Macquarie.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Micro Finance Sector Continues To Be Resilient With Stable Collections: ICICI Securities

Pan-India collections in January 2024 have either improved or remained stable as compared to Dec-23

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