The microfinance industry is likely to bounce back to pre-Covid levels both in terms of disbursements and collection efficiency by the third quarter of this fiscal.
Manoj Kumar Nambiar, Chairperson, MFIN and MD of Arohan Financial Services Ltd, said that disbursements in July have been nearly 50 per cent of that registered during a normal month before the Covid-19. The industry should be able to sustain the momentum and build upon it in August and take disbursements up to nearly 85-90 per cent registered in a normal month.
“April was a lockdown month so nothing really moved. In the last week of April the unlocking started but there were hardly any disbursements. In May, the formal process of unlocking started and we could get most of our staff back and more than 90 per cent of our branches open so we had three full weeks of activity,” Nambiar told BusinessLine