“Banks have always struggled to find the right priority sectors to lend to, in order to meet their PSL requirements. With the growth that microfinance sector has witnessed, coupled with the favourable metrics of the business, such as low rate of NPAs and high return on equity, the sector has become an attractive space for PSL lending for banks and thus the strong interest to take a direct exposure by acquiring these businesses.”

Khushroo B. Panthaky
Director, Grant Thornton Advisory Private Limited

This article apeared in Live Mint on 12th October, 2016.