Categories: Business

Micro-finance institutions will get relief from restarting economic activities: ICRA

Micro Finance
Image Source: PTI

new Delhi. The resumption of economic activities in the Green and Orange zones across the country will provide relief to the Micro Finance Institutions (MFIs). According to the report by rating agency Icra, this may change their condition rapidly. Icra made this report by assessing the potential impact on the loan portfolio and loan costs of 30 MFIs and Small Finance Banks (SFBs) on a zone basis. According to the report, nearly 69 percent of all the companies involved in the assessment are in the areas falling in the Green and Orange zones. Many companies have more than 50 percent distribution in the Green and Orange zones.

Icra said that in such a situation, the start of economic activities in these areas will give relief to the MFI companies and their health will be seen faster in these areas than in the Red Zone. It is noteworthy that the government has divided the country into three zones Red, Orange and Green according to the threat of Kovid-19 in the third phase of lockdown (bandh). The maximum exemption from lockdown rules is given in the Green Zone, while in the Orange Zone, this exemption is partial. The most stringent lockdown restrictions apply in the Red Zone. 56 percent of the country's land is in the Green and Orange zones. While the remaining 44 percent is in the Red Zone.

This post was published on May 13, 2020 11:20 pm

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