Loan disbursement continues to fall post demonetisation, says BFIL
Non-banking micro-finance company, Bharat Financial Inclusion Limited (BFIL), on Tuesday unveiled data that showed post demonetisation loan disbursement has witnessed a steady decline.
The company said that the disbursements as a percentage of collections witnessed a steady decline in rates after November 11.
During November 14-18, loans amounting to Rs 170 crore were disbursed while disbursements as a percentage of collection was at 75%. However, from December 12 to December 15 loans disbursed were to the tune of Rs 156 crore while its corresponding percentage of collections dropped to 67%.
The company data showed that a total of Rs 970 crore in loans have been disbursed post the demonetisation announcement on November 8.
Image Source: BFIL report
“99% Loans for Income generating activities and most of our customers undertake economic activities, which cater to non-discretionary spending in the local milieu (Livestock (Eg:Milk) -33%, Grocery -10%, Eateries -4% etc.),” the company said.
The company said that it had also seen a ‘four-week lag’ in terms of debt collection efficiency during the demonetisation phase.
Collection efficiency by the company remained at 97.7% during this period.
Image Source: BFIL report
“We continue to disburse in centers, only if the collection efficiency of that center is 100%,” the company added.
The company further said that disbursement of loans were conducted by recycling cash collections, due to the restrictions on current account withdrawals of up to Rs 50,000 per week.
“Disbursement to customer bank accounts are also limited due to ATM withdrawal limits and limited availability of cash at bank branches,” the company added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
01:46 PM IST