Pexels With increasing COVID-19 cases and the resultant restrictions in movements imposed by many states, the microfinance industry is likely to see an impact on their collections and may continue to witness asset quality pressures in the near term, says a report. However, good on-balance sheet liquidity and sizeable provisions created by most of the Microfinance Institutions (MFIs) in FY2021 will provide a cushion to them for absorbing further shocks, Icra Ratings said in a report on Tuesday. "Asset quality pressures for the microfinance industry to continue in the near term amid the rising COVID-19 infections and localised restrictions/ lockdowns," the agency's vice president and sector head (financial sector ratings) Sachin Sachdeva said.