The microfinance industry is currently experiencing tailwinds, but sustained growth at present levels remains favorable. After approximately six to eight months of subdued performance, we anticipate this trend could continue for another twelve months. Companies like Credit Access Grameen are facing challenges.
A notable risk is the recent action by the Reserve Bank of India (RBI), which has directed four Non-Banking Financial Companies to cease new loan sanctions and disbursements. According to a report by Morgan Stanley, more lending companies may face similar scrutiny. However, this situation presents an opportunity for companies that steer clear of such practices; growth potential may shift towards Northern Arc as a result.
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