Structured Finance - Decline In Collection Efficiency Seen In Retail Pools Across Asset Classes: ICRA
A customer holds Indian rupee notes at a store in the Dadar wholesale flower market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)  

Structured Finance - Decline In Collection Efficiency Seen In Retail Pools Across Asset Classes: ICRA

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICRA Research Report

The average monthly collection efficiencies again took a beating in April 2021 and dropped in the range of 8-20% in April 2021 from the previous month due to the disruption caused by the second wave of pandemic.

On an industry level, a majority of the originators have reported higher bounce rates and consequently, lower collections during April and May 2021.

We expect collections to rebound from June 2021, at least in some geographies that are now far below the peak levels of daily infections, on account of the gradual easing of restrictions/lockdowns.

Considerable drop in collections recorded in microfinance and unsecured small medium enterprise loan pools in April 2021 compared to March 2021.

Click on the attachment to read the full report:

ICRA SF Thematic - Collection & Delinquency Trends - June 2021.pdf

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