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ICICI Securities Report
In our transitory trend reports, until now, the focus was more on moratorium trends.
However, now with moratorium-2 benefit getting over (on August 31, 2020), we will focus incrementally on collections, restructuring, customer activation and disbursement rebound.
In this report, we specifically chose to deep-dive into the progress of Micro Finance Institution segment.
At the onset of Covid-19 crisis, this segment was anticipated to be the most vulnerable, given high human intervention and unsecured nature.
However, it is quickest among the lot to rebound (zero to less than 10%, 10-30%, 35-70% and 40-90% collection efficiency in April, May, June and July) and players conservatively have provided adequately (average 200 basis points) on portfolio (to cushion earning volatility).
Trends have been varying across players, geography etc but what is certain is leaders with high vintage, more frequent (weekly/bi-weekly) collections, adequate liquidity would gain market share.
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