MFI stress is easing, festive season to bring better times: KVS Manian, Federal Bank

Federal Bank’s MD, KVS Manian, believes micro finance slippages peaked last quarter. The bank anticipates better festive demand and growth in gold loans. Net profit declined in Q1 due to increased provisions. However, collection efficiencies improved in July. The bank expects NIM to bottom out soon. Federal Bank is optimistic about growth in secured MSME and gold-backed lending.

​Federal Bank’s MD, KVS Manian, believes micro finance slippages peaked last quarter. The bank anticipates better festive demand and growth in gold loans. Net profit declined in Q1 due to increased provisions. However, collection efficiencies improved in July. The bank expects NIM to bottom out soon. Federal Bank is optimistic about growth in secured MSME and gold-backed lending.