However, these loans could be worth acquiring if sold at the right price, particularly on a cash-to-security receipts (SRs) basis rather than a full cash basis.
Industry-wide stress in the microfinance sector has built up due to unchecked credit growth and multiple loan disbursements to the same customers, resulting in overleveraging among borrowers.
As delinquencies rise, major banks and microfinance-focused NBFCs are selling off non-performing loans. Recently, IndusInd Bank invited bids from ARCs to offload ₹1,573 crore of non-performing microfinance retail loans from over a million accounts. The bank has invited bids on a full cash basis (100 per cent cash basis) and set a reserve price of ₹85 crore, translating into a recovery of 5.04 per cent for the bank.
This story is from the January 10, 2025 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January 10, 2025 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
SIP OF LIFE
How Makaibari, the iconic Darjeeling tea brand, is seeking to brew a touch of lifestyle and heritage in Kolkata and beyond
Lanka power project not cancelled: Adani group
The Adani group on Friday denied the cancellation of Adani Green Energy's (AGEL's) wind power project in Sri Lanka. The group said the tariffs for the project are being re-evaluated as part of a standard process.
Highways Infra Trust eyes ₹25k cr AUM this FY
Highways Infrastructure Trust's growth is set to be fuelled by the infusion of ₹5,500 crore from its key investors -- KKR and Ontario Teachers' Pension Plan (OTPP), said Gaurav Chandra, executive director and joint chief executive officer.
Patanjali recalls 4 tonnes of red chilli powder
Home-grown fast-moving consumer goods (FMCG) company Patanjali Foods on Friday said that it had recalled four tonnes of red chilli powder (200 gm packs) from the market.
GCPL net down 14.2% at 498 cr
Godrej Consumer Products Ltd (GCPL) on Friday reported a 14.24 per cent decline in consolidated net profit after tax (PAT) of ₹498.31 crore in the third quarter ended December 2023, impacted by demand headwinds in India and surge in palm oil prices.
Sebi bars Suumaya’s promoters for fraud
The Securities and Exchange Board of India (Sebi) on Friday debarred four individuals from the promoter group and management of Suumaya Industries for allegedly manipulating markets (Suum) from accessing the market and engaging in fraudulent transactions, and diverting funds.
DFS secretary: Pension fund market needs diversification
The pension fund industry requires greater participation, given the high concentration of assets, Department of Financial Services (DFS) Secretary M Nagaraj said on Friday.
Future shock for India in technology?
A large chunk of its workforce is unprepared as AI, ML become common
Fall in rupee an investment opportunity for NRIs, GCCs
However, experts warn of risks ahead
Tata Electronics acquires 60% in Pegatron India, bags iPhone plant
Tata Electronics announced on Friday its acquisition of a controlling 60 per cent stake in Pegatron Technology India Private Limited - a subsidiary of Taiwanese electronics manufacturing giant Pegatron Corporation.
