In this edition of Ideas for Profit, Moneycontrol's Sakshi Batra finds out which microfinance institute should be on investors’ radar given the improving collection efficiencies witnessed after the lifting of lockdown restrictions
Most businesses are facing significant headwinds, but non-bank microlenders, NBFC and MFIs in particular, have been most impacted by the nationwide lockdown.
However, the good news is that with restrictions being lifted gradually, the collection efficiency, which had plunged to near zero in April, has rebounded sharply in July and August for most MFIs. Though there is still a long way to go before reaching pre-pandemic collection levels of 98-99 percent, the bounceback has been faster than that envisaged by the Street.
So, given the improving business activities, which MFI should be on investors’ radar? Let's find out in this edition of Ideas for Profit.