MFI stocks make a comeback in financial landscape after two-year hiatus

Betting on pure-play MFI players such as CreditAccess Grameen and Spandana Sphoothy may be safer compered to MFI-oriented banks

Ever since the Bharat Financial Inclusion’s acquisition by IndusInd Bank came through in 2018, the interest in the microfinance segment from an investment perspective waned off. While Equitas Holding and Ujjivan Financial Services were available as options, broiled in corporate structure issues, the merits in investing in microfinance (MFI) stock thinned over time.

Thanks to faster than expected recovery post the pandemic led lockdown and more importantly the rural markets heavy-lifting much of the economic comeback, MFI stocks are back in limelight after a two years hiatus. Not just that, for investors, gamut of available stocks has also increased. While