Microfinance business may attract closer scrutiny on the way it is done

The outstanding microfinance portfolio at Rs 236.1K crore as of June 2021 marks a seven per cent quarter-on-quarter de-growth and less than a per cent in year-on-year growth.

Is all well among microfinance institutions (MFIs)? Just about everybody will tell you that collections are back on track. But the latest Micro-lend report by CRIF High Mark notes the portfolio-at-risk (PAR) in the 30 days past the due date bucket worsened to 15.4 per cent in June 2021 from 9.7 per cent in March 2021. In the case of PAR 90 days past the due date, it improved to 3.3 per cent from 4.4 per cent, but PAR 180s day past the due date rose to 7.1 per cent from 4.9 per cent. Then, you have the variance on