💨 Abstract

The report by Mavenark Advisors predicts a shrinkage in the Net Interest Margins (NIMs) of microfinance institutions (MFIs) in the financial year 2025, due to increasing delinquencies and declining yields. This follows two years of improvement driven by the Reserve Bank of India's lending rate cap removal, better asset quality, and reduced leverage.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖