MFI collections in July spurt to 70-75% of pre-Covid level: Crisil

April was worst, with near zero collection

Collections by microfinance institutions (MFIs) in India rebounded to 70-75 per cent in July on gradual easing of restrictions imposed in lockdown to contain the Covid-19 pandemic, according to rating agency Crisil.

The repayments by borrowers had plunged to near zero in April due to the nationwide lockdown to stem the pandemic.

While the bounce-back in July has been faster than that envisaged earlier, improving it to the pre-pandemic levels of 98-99 per cent will be an important monitorable from an asset quality perspective.

Crisil said MFIs are expected to focus on raising additional equity capital over the near to