Microfinance firms, NBFCs may struggle to provide loans in cyclone affected Odisha
Updated : May 09, 2019 08:59 AM IST
The financial firm in its note added that in spite of Odisha having one of the best credit cultures at 0.5 percent, one of the lowest in the PAR>30 portfolios, larger NBFCs are restricting their balance sheet growth, followed by their medium and smaller counterparts, which has made it challenging in providing loans.
The NBFC and micro-financing companies may see negligible to little write-offs from Odisha, which was recently battered by cyclone Fani.
Microfinance companies like CreditAccess has the lowest exposure at 2 percent, while Bharat Financial Inclusion (BFIL) has the highest exposure at 16 percent of total loans in Odisha, the report added.