InvestorQ : I am a shareholder in Grameen Credit Access and saw the stock doing well in last few days? What is reason?
prachi Patwardhan made post

I am a shareholder in Grameen Credit Access and saw the stock doing well in last few days? What is reason?

Answer
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3 months ago


Most of the micro finance institutions (MFIs) are doing extremely well in the last few days and Grameen Access is one such example. One reason has been that despite the moratorium, rural customers of MFIs are clearing their dues on time. That is proving to be cash flow accretive to these MFIs. Most MFIs like Grameen have admitted that more than 50% of their recoveries in the month of June may be driven by rural borrowers. Interestingly, the robust Rabi crop has helped immensely as also the essential nature of rural occupations. It has been seen that has helped rural borrowers have become more resilient to the economic slowdown and that has helped collections. For Credit Access Grameen, this is specifically an advantage as nearly 85% of its MFI customers come from the rural areas. One reason has been that rural livelihoods have been less impacted by COVID-19 pandemic.