Kolkata: The impact of demonetisation on microfinance securitisation volumes has led to a slump of 79 per cent in the second half of FY17′.
“The decline is to the tune of 79 per cent in the second half of the FY17′ at Rs 1,650 crore compared to Rs 8,000 crore in the six months of the previous year,” ICRA Head–Structured Finance, Vibhor Mittal told.
The bold demonetisation measure was announced in November, 2016. “After two years of rapid growth, volumes for micro loans securitisation transactions witnessed a trend reversal with around 20 per cent drop observed for the full 2016-17,” a recent ICRA study said, reports PTI.
MFIs (including some erstwhile MFIs – now small Finance Banks) raised nearly Rs 5,500 crore through the securitisation route in the first six months of FY17′.