Why do lenders rush where angels fear to tread

Only a forensic audit can answer the questions that lenders to Bhartiya Micro Credit have, but don't dare to ask

The Central Repository of Information on Large Credits (CRILC) is an electronic filing platform for exchanging business information. This platform, created by the Reserve Bank of India, draws credit information of banks with aggregate exposure of at least Rs 5 crore to borrowers.

The payment history of the Bhartiya Micro Credit (BMC), a Lucknow-based non-profit microfinance company, on CRILC, reads like a puzzle. In the past one-and-a-half years many banks that have lent to it have been reporting the BMC account moving to “default” and getting “out of default” categories. Take the case of Indian Bank: On January 1, 2018,