Microfinance collections may dip 8-10% sequentially in April: Icra

With the surge in Covid-19 infections and lockdowns in various states, collections by India's microfinance Institutions may drop sequentially by 8-10 per cent in April, according to rating agency Icra.

The microfinance industry continues to witness uncertainty on asset quality amid the expected drop in collections, given the rapidly rising Covid-19 infections since March 2021. But, healthy liquidity buffers maintained by most entities provide some comfort.

Sachin Sachdeva, Vice-President, Icra, said several states/Union Territories (UTs) have either imposed lockdowns or have placed significant restrictions on people movement and gatherings to curb the spread of pandemic. This is creating disruptions in the economic