ICICI Securities: Micro Finance Institutions Though Vulnerable, Quickest Of The Lot To Recover

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Micro Finance Institutions Though Vulnerable, Quickest Of The Lot To Recover

ICICI Securities: Micro Finance Institutions Though Vulnerable, Quickest Of The Lot To Recover

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