 "banks")
Despite a fall in the cost of funds over the past year, banks remain shy of lending to microfinance institutions (MFIs), especially mid-size and small-size ones.
In general, about 60 per cent of funding for MFIs come from banks. The rest was met through instruments such as securitisation (the market for which had dried after demonetisation) and debentures, among others.
However, most banks have now restricted their funding to large MFIs, said entities in the segment.
“In the past year, the cost of funds for MFIs has gone down by 60-70 basis points. However, banks have remained cautious in lending, due to
