India: Ujjivan Financial Services & Bharat Financial Inclusion Are Our Top Picks...

Print
 
Jul 2017
India, July, 05 2017 - Microfinance institutions (MFIs) are in focus as the improvement in collections that the microfinance industry witnessed during demonetisation seems to have slowed significantly in the past six months. In an interview to CNBC-TV18, Digant Haria, AVP Research at Antique Stock Broking analyses the sector.

Microfinance institutions (MFIs) are in focus as the improvement in collections that the microfinance industry witnessed during demonetisation seems to have slowed significantly in the past six months.

In an interview to CNBC-TV18, Digant Haria, AVP Research at Antique Stock Broking analyses the sector.

After Uttar Pradesh (UP) farm loan waiver was announced, the collections in UP improved significantly. MFI repayments are reaching 98 percent levels, he said.

Farm loan waivers may not dent the profitability or the collections for microfinance companies. Microfinance companies are still suffering from demonetisation impact in 5-6 districts of Maharashtra, Karnataka and UP, he added.

Discipline on ground by Bharat Financial Inclusion is far better than its peers. Strong players who have very good grip over operations will suffer much less compared to the weaker guys, said Haria.

Players like Ujjivan Financial Services and Bharat Financial Inclusion are present in more than 16 states and more than 300 districts in India.

Ujjivan Financial Services and Bharat Financial Inclusion are our top picks here because they are very well diversified geographically, he mentioned.

He believes they will escape this entire demonetisation crisis by writing off around 3-4 percent of their portfolios.

He expects MFI sector to come back to normalcy within next three months.

Antique Stock Broking has downgraded Equitas Holdings because it is constantly moving away from the microfinance segment.A



Source : Money Control
 

Research Analysis Tools

The fund indexes, institution benchmarks and other market information displayed here are all Symbiotics designed analysis tools, created in-house by our analysts and experts. Symbiotics has one of the oldest track records in microfinance investment analysis dating back to the late 1990s; its indexes and benchmarks have been regularly used as markers by investors, asset managers, financial institutions and practitioners. These, as well as several other research products, are available through the Research Account. Click on the link below to find out more.

Learn More