Cyclone Fani' Odisha carnage may weigh on micro-financiers' asset quality

State is the second-largest state in terms of MFI gross loan portfolios with total AUM of Rs 6,800 cr as of December 2018

Cyclone Fani, which hit Odisha's coast last Friday, could hurt the asset quality of some micro finance lenders such as Bharat Financial Inclusion (BFIL), Ujjivan Financial Services, L&T Finance Holdings, CreditAccess Gramen and Bandhan Bank.

Odisha is the second-largest state in terms of gross loan portfolios of microfinance institutions (MFIs) with total assets under management of Rs 6,800 crore as of December 2018. The state's share is about 11 per cent of MFIs gross credit. Non-banking finance companies classified as MFI have the largest share of 37 per cent in the overall micro credit pie, says the September 2018 data