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Note ban impact: Rising defaults by MFI borrowers turn investors cautious

Securitisation volumes drop 20% in F&17 after two years of rapid growth

Abhijit Lele  |  Mumbai 

The amount raised by micro finance institutions (MFIs) through securitisation was 20 per cent lower in 2016-17 as compared to the previous year, as investors turned cautious about taking exposure on MFIs hit by loan defaults after demonetisation. MFIs, including some erstwhile MFIs that turned small finance banks, raised Rs 7,150 crore in 2016-17, down from Rs 9,000 crore 2015-16. The impact of demonetisation on microfinance securitisation volumes has been severe, according to Icra. This fall comes after two years of rapid growth. The securitisation volumes had grown 80 per cent to ...

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First Published: Tue, April 18 2017. 02:04 IST
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