on Jun 25, 2021)Chennai: Microfinance institutions (MFIs) saw their collection efficiency drop below 70%, as borrowers in both rural and urban areas defaulted on repayments, either due to loss of business or an indirect impact of the coronavirus pandemic.
said its collection efficiency for March 2021 was 105%, which marginally dipped to 93% in April, 2021 and fell lower to 75% due to the extended lockdown in May 2021.
For Asirvad Microfinance, a subsidiary of
, collection efficiency dropped to 80-85% in June, as against 90-95% in March 2021. Its NPA level has also gone above 2.5% in the April-June quarter, as compared to 1.2-1.5% in the previous quarter.
For Spandana Sphoorty Financial, collection efficiency dipped from 96% to around 80% in April-May, and disbursements have been on a pause and approach will be calibrated in the near term, according to Yes Securities.
