(MFIs), which are currently feeling the pinch of the
coronavirus pandemic with their operations being suspended
during the nationwide lockdown, are concerned about the near-
term growth of the industry, officials said on Monday.
The MFIs will concentrate more on protecting their
existing portfolios, once the lockdown will be lifted, and
many of them may shelve their expansion plans for the time
being, a self-regulatory organisation of the sector,
Microfinance Institutions Network (MFIN) chairperson Manoj
Kumar Nambiar said.
Speaking on the outlook for the industry, he told PTI:
“Performance of the MFIs in the current fiscal which has just
begun, will depend on when the lockdown will be lifted and how
quickly the governments, both the Centre and the states,
arrest the pandemic.
“The first quarter will certainly get affected as
collections will fall in April and May because many borrowers
will opt for the moratorium package.”
Nambiar, further said, disbursements to existing
customers will continue but micro-lenders will be cautions to
extend credit to the new ones during this crisis period.
The short-to-medium-term impact of the coronavirus
outbreak and the subsequent measure of the lockdown to combat
the pandemic seems to be more on the urban in-formal sector as
compared to agriculture-based rural activities, another self
regulatory organisation of the sector, Sa-Dhan executive
director P Satish told PTI.
“MFIs with more…