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Do not write an obit for Indian Microfinance sector just yet

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The global pandemic that hit the world in 2020 has changed the way of managing businesses all across. The post-COVID era thus urges us to look at things differently. Liquidity management has become a lot different now, due to changes in the behaviour of underlying assets and liabilities. While a significant number of NBFC-MFIs granted moratorium to most of their customers, they did not receive the same relief from their lenders. This has led to the creation of an asset liability mismatch in the books of NBFC-MFIs.
Given the current macro-environment, lenders’ appetite has gone down significantly, in as much as …

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