‘Six more months needed to recover from demonetisation’

Our Bureau Kolkata | Updated on January 18, 2018

It will take another six months for the micro-finance industry (MFI) to completely recover from the effect of demonetisation, which saw collection rates falling substantially resulting in the rise of non-performing assets (NPA).

According to Ratna Vishwanathan, former CEO, MFIN (Microfinance Institutions Network), the NPAs have come down from 23 per cent in the period immediately following demonetisation to 4 per cent at present within a span of one year. This is expected to come down further to 2 per cent moving forward.

“Post February 2017, collection rate of the industry improved to over 90 per cent. Within a span of next six months things should be back on track,” Vishwanathan told newspersons on the sidelines of a microfinance summit organized by Association of Microfinance Institutions–West Bengal (AMFI–WB) here on Thursday.

Published on January 18, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like