Some part due to lower cost of funds, some part due to lower leverage and some part due to high yields (~24%). They have been saying they will pass on recent lower cost of funds advantages to customers once predictability with (rising) interest rates increases.
Their incremental and overall cost of funds decreased even during rising interest rate environment.
And, from here on they will try to increase leverage as well, again statements made in concall. Spreads as well as NIMs should decrease going forward. Guiding for no further equity dilution for next 3-5 years.
And, I have not studied fedfina and sbfc. My takeaways for micro finance are from bandhan, asirvad micro finance, etc
Not invested.
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