Nearly three years after the Covid-19 outbreak, the collection efficiency of microfinance-focused non-banks and unsecured SME (small and medium-sized enterprises) pools has topped 98% of the levels seen in the pre-pandemic days, ICRA has said in a report.
Even the delinquency levels are lower by 300 basis points (bps) from their peak levels during Covid-19, the rating agency said.
Collection efficiency for non-banking financial companies (NBFCs) and housing finance companies (HFCs) has been healthy in the range of 97% to 105% in the nine months of the current fiscal year, as per an analysis done on ICRA-rated retail pools. “Collection efficiencies have remained robust so far in spite of the global uncertainties, inflationary pressures and rising interest rates,” said Abhishek Dafria, vice president of ICRA. The delinquency levels are lower by 300 basis points (bps) from their peak levels during Covid-19, the rating agency said.
