Assam continues to be a pain point for MFIs as defaults remain high

With little respite from spate of defaults in Assam, the microfinance industry is witnessing stress, particularly in North East.

According to data from CRIF MicroLend for Q3 of this financial year, the portfolio at risk (PAR) for the industry for repayment between 31 and 180 days stood at 1.5 per cent, which was 50 per cent higher on a year-on-year basis.

The report further says that banks, which had been at the least risk in the previous quarter, have shown deteriorating asset quality with an increase in both 1-30 and 31-180 days’ buckets across rural and urban geographies.

North eastern region which has