NBFC-MFIs show moderation in leverage for three consecutive quarters

The leverage of non-banking financial companies (NBFCs), which are working as microfinance institutions (MFIs), has improved for three consecutive quarters, from 3.5 per cent in March 2019 to 3 per cent in December 2019, on the back of a rise in outstanding equity capital.
 
During the December quarter (Q3FY20), NBFC-MFIs received a total of Rs 10,960 crore in debt funding, up 16 per cent from Q2FY20. Total equity grew 8 per cent during the same period and is at Rs 15,567 crore.
 
Harsh Shrivastava, chief executive, Microfinance Institutions Network (MFIN), said capital inflows are rising in the NBFC-MFI