‘Fundraising woes ahead for microfin firms’

NEW DELHI: India Ratings and Research has maintained an overall negative outlook on the microfinance sector for 2021-22 (Apr-Mar) in view of the challenges faced by them in raising funds and managing credit costs.

Challenges could emerge from urban regions post CCOVID-19 and from microfinance institutions focused in Assam and West Bengal, it said.

In 2021-22, nine states, including West Bengal and Assam, are expected to go to polls and the political risks could be a large overhang on the sector, India Ratings said in a note.

It maintained a stable outlook on large microfinance institutions with assets under management of over Rs 50 bln rupees.