Motilal Oswal - MOSL: FINANCIALS | Microfinance-Collections picking up in troubled states-Vast opportunity, yet clouded by political uncertainty

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Motilal Oswal

Alpesh Mehta

MOSL: FINANCIALS | Microfinance-Collections picking up in troubled states-Vast opportunity, yet clouded by political uncertainty

â€‹Financials | Microfinance: Collections picking up in troubled states; Vast opportunity, yet clouded by political uncertainty

We recently attended the MFIN Conclave - Microfinance in Asia: A Mosaic. Based on discussions with the delegates and industry experts, the consensus is around improvement in the asset quality situation from February levels. However, in certain pockets, the situation remains grim.
The top-5 states, which accounted for ~50% of the AUM at the end of February, had 70%+ of the problems.
Borrowers are gradually coming to terms now with the importance of maintaining a good credit record - they are realizing that repayments are the only way to ensure future loans from organized financiers.
Amongst the larger states, Uttar Pradesh (10% of industry AUM and 20%+ problem at PAR >0DPD) is improving at a healthy pace. However, certain pockets in Maharashtra (Vidharbha region) remain areas of concern.

04/05/2017 6 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Alpesh Mehta

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MOSL: FINANCIALS | Microfinance-Collections picking up in troubled states-Vast opportunity, yet clouded by political uncertainty

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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