Recovery for Bharat Financial and Ujjivan some time away

Maharashtra accounting for 11% of loan book remains a pain point

Stocks of microfinance institutions (MFIs) and small finance banks (SFBs) are yet to pick up after a weak March quarter (Q4) performance. Ujjivan Financial Services and Bharat Financial Inclusion have seen 6–11 per cent erosion in their stock prices since their Q4 results. It is anticipated the recent developments, particularly on farm loan waiver, may put further pressure on these stocks. As it comes at a time when the overall collection efficiencies are improving, investors need to wait for more clarity on how these developments have affected the collection discipline. This is also an important monitorable as the collection efficiency