Consequently, the industry is witnessing a reduction in collections and the recovery seen in Q4 FY2021 is being challenged again. Icra
estimates a sequential drop of 8-10 per cent in collections in April 2021. The same may dip further if the infections continue rising and more restrictions are imposed across locations.
The improvement in collection efficiency and pick-up in growth in assets under management (AUM) in H2 FY2021 helped the industry witness a marginal improvement in the overdue portfolio.
The 0+ days past due (dpd) improved to 16.7 per cent as on December 31, 2020, after rising to 18.1 per cent as on September 30, 2020, following the lifting of the moratorium.
The collections continued to improve in Q4 FY2021. As per interactions with various MFIs, Icra
estimates a reduction of 300-400 basis points in the 0+ dpd in Q4 FY2021. However, the improvement in the 90+ dpd is expected to be marginal, as it is challenging for marginal borrowers to repay multiple instalments.
Among major states as per portfolio size, Assam led the chart on 90+ dpd, which stood at about 20.3 per cent as on December 31, 2020. The 90+ dpd for other major states are Maharashtra (7.8 per cent), West Bengal (6.1 per cent), and Kerala (6.1 per cent) respectively as on December 31, 2020 compared to a pan-India average of 4.9 per cent.
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