Bank credit to Micro Finance
Institutions (MFI) is likely to decline by 50 per cent in the
third quarter of the current fiscal, an official said on
Bank finance typically accounts for 50-70 per cent of
"Since September, bank finance has dried up. We
estimate that on an average, there is a decline of 50 per cent
to the MFI sector in West Bengal," Association of Microfinance
Institutions-West Bengal Chairman A K Maity said.
He was speaking at a programme to announce the 4th
Eastern India Microfinance Summit 2018 on December 14.
However, association secretary and Uttarayan MFI MD,
Kartick Biswas said impact of liquidity crisis is not across
the board, and banks are extending credit based on individual
The outstanding loan book of 36 MFIs under the
association is Rs 27,000 crore.
Biswas said most of MFI growth takes place in the
fourth quarter and he expects the liquidity situation to ease
in the January-March quarter.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)