Covid 2.0 unleashes credit stress for MFIs, small NBFCs
The impact of the second Covid wave has raised concerns over the recovery of the microfinance (MFIs) and the small NBFC sector, which was already battling the elevated credit stress and declining AUM in FY21
A report by Acuite Ratings said that collection efficiencies which were seen recovering above 90 per cent in Mar-21 have dropped to between 65-85 per cent levels during Q1FY22. Source: Reuters