2 days Ago By CNBCTV18
Stocks with exposure to the Microfinance segment like Equitas, Bandhan Bank Ltd., CreditAccess Grameen Ltd., Ujjivan Financial Services Ltd.
, Spandana Sphoorty Ltd., and IndusInd Bank are in focus on Thursday, January 2. Share Market View All Nifty Gainers View All Company Value Change %Change Reports are indicating that the MicroFinance Institute Network (MFIN) has deferred the implementation of limiting the number of lenders to three per borrower by three months.
The new timeline for the implementation of these rules is now April 1, 2025, according to these reports. This is being done to give time to lenders to manage their stress and delinquencies. According to the companies, the January-March period is generally a strong one for the micro finance segment and had hence asked for a delay in the implementation of these norms, the reports suggested further.
In November last year, the MFIN had introduced a new cap of three lenders per borrower along with a few other guidelines. Most of these stocks have seen a correction between 20% to 40% in 2024. IndusInd Bank was the worst performer on the Nifty 50 index last year, with a fall of over 40%.
In a note on December 31, UBS wrote that micro finance overdues are up 110 basis points on a month-on-month basis in November 2024. It expects muted growth in financial year 2025 due to stress & disbursement norms getting further tightened. CNBC-TV18 has been reporting about the stress in the micro finance space since May last year.
You can read more on that here. Also Read: 4 out of the top 5 mid-cap losers of 2024 affected by microfinance meltdown.
