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Satin Creditcare Network Limited s AUM at Rs 7274 crores as of March 31, 2021

As Covid cases surges, microfinance industrywary of the impact on its collection efficiency

As Covid cases surge, microfinance industry wary of the impact on its collection efficiency April 08, 2021 × Disbursements to new customers may also be impacted if field operations are affected due to increase in restrictions in certain regions The microfinance industry, which has been inching towards pre-Covid levels – both in terms of disbursements as well as quality of portfolio – now seems a little wary of the impact of the sudden surge in Covid-19 cases on its collection efficiency. Any impact on collections may also hurt growth in disbursements, as fresh loans to existing customers will only be sanctioned as and when they foreclose the previous loan.

Financials stocks slide

Financials stocks were trading with losses, with the S&P BSE Finance index decreasing 235.04 points or 3.15% at 7220.35 at 13:49 IST. Among the components of the S&P BSE Finance index, Indiabulls Housing Finance Ltd (down 5.69%), Can Fin Homes Ltd (down 5.53%),Bajaj Finance Ltd (down 5.43%),Canara Bank (down 5.41%),IndusInd Bank Ltd (down 5.33%), were the top losers. Among the other losers were Tourism Finance Corporation of India Ltd (down 5.17%), IFCI Ltd (down 4.99%), Equitas Small Finance Bank Ltd (down 4.68%), Bajaj Finserv Ltd (down 4.56%), and State Bank of India (down 4.47%). On the other hand, Satin Creditcare Network Ltd (up 3.39%), Magma Fincorp Ltd (up 3.25%), and Religare Enterprises Ltd (up 2.63%) turned up.

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