MFIs might write off NPAs worth over Rs 4,100 cr in FY18

It was expected that more than 70% of the delinquent portfolio would be written off in FY18

Microfinance lenders in India might have to take a hit of more than Rs 4,100 crore as they would have to write off about 70 per cent of their non-performing assets (NPAs) in 2018.

Rohit Inamdar, group head financial sector ratings, ICRA, said loans worth Rs 5,900 crore were in the 90-day dues bucket. Based on the recovery trends from delinquent buckets, it was expected that more than 70 per cent of the delinquent portfolio would be written off in FY18. Consequently, the likely credit costs — amount to be set aside for delinquent loans — for the industry was