Huge spike in loan defaults after demonetisation, says Equitas Holdings

The company may have to make further provisioning this fiscal also, on the growing delinquencies

Delinquencies in the microfinance business of Equitas Holdings Ltd have risen by almost five percentage points post demonetisation, the company's management said on Friday. The company may have to make further provisioning during the current fiscal related to the increase in delinquencies.

"Delinquency in microfinance used to be under one per cent consistently for many years, but in the last few months it has moved substantially up and today it is just under six per cent ," P N Vasudevan, MD and CEO , Equitas Small Finance Bank Ltd told shareholders at the company's annual general meeting in Chennai. The delinquency