But when they fall, and before they go back up… the risk is high… Why…
RBI allows 91% disbursal, but they give only 75%.
The company as a 25% policy buffer. As this buffer gets exhausted, risk increases. Take the recent case, the fall is round 18%, risk is alarming.
What if it fell another 18%?
Muthoot would have a very hard time recovering!
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