The Risks in the Post COVID World with Harsh Shrivastava

--:--
Investec India hosted Mr Harsh Srivastava, CEO - MFIN, an Indian microfinance sector association. So far, most listed players have indicated as high as 50%+ collection efficiency in the first half of June’20. However, Mr Srivastava believes that this could still be limited to a few large players while most of the system might continue to struggle with collections of ~25% currently. This is expected to gradually improve to a 50-60% level by Sept’20 before fully normalizing by Dec’20. From a political risks perspective, between the two states of Bihar and West Bengal (WB) which are heading into elections, West Bengal seems more vulnerable but the industry seems to be banking on Bandhan to smoothen any unwanted events. Finally, liquidity flow to the sector remains the biggest risk which can force smaller MFIs to pursue aggressive collections which could lead to potential political risks.
20 Jun 2020 English South Africa Business · Investing

Other recent episodes

Investec India - UK Economic Crisis and its impact on India with Mr Philip Shaw,

Last week saw continued turmoil in financial markets, culminating in the Bank of England acting with an (up to) £65bn emergency intervention, in an attempt to calm domestic markets and restore financial stability. This was in response to the reaction in longer-dated gilt markets – particularly at the 30-year maturity…
6 Oct 2022 52 min

Investec India Auto Series Expert Speak with Andrew Schultz, SA Strategiest

We hosted Andrew Schultz from our South Africa office yesterday for an on the ground perspective on the Nigerian economy. Andrew expects the near term to remain volatile (dollar crunch, inflation spike) until the general elections (to be held in Feb’23). This shouldn’t hurt demand though, as revenues of FMCG…
2 Oct 2022 54 min