Microfinance companies are expected to face profitability challenges in FY25, driven by rising credit costs and a potential compression in interest rate margins, according to ICRA. Tighter lending practices and a significant increase in overdue loans will negatively impact business volume and loan quality.
Market expects one more rate cut as inflation stays benign
Indian economists and bond market experts expect another quarter percentage point cut in policy rates. This follows the Reserve Bank of India’s recent rate reduction