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Struggling Since Note-Ban, Report Loans Shooting up to 14%
May 25, 2017
The demonetization drive has affected the Micro Finance Institutions badly as they report their assets ratio growing by 14.1 %. The PAR (Portfolio at Risk) that stood at 0.40% a year ago, has shot to 14.1% now, as told by the industry regulation organization Microfinance Institutions Network.
The organization said that the rapid increase in PAR is because of the reduced loan recoveries in the wake of the note-ban that led to a cash crisis, especially for those belonging to low-income families.
MFIN CEO Ratna Vishwanathan is confident, however, that the situation will improve soon as liquidity will increase.
