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THE MICROBANKING BULLETIN No. 20 - Microfinance Information ...

THE MICROBANKING BULLETIN No. 20 - Microfinance Information ...

THE MICROBANKING BULLETIN No. 20 - Microfinance Information ...

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FEATURE ARTICLESThe debt-equity ratio in the industry is expectedto stabilize at between 4x and 5x, given the morestringent capital adequacy norms that will requireNBFCs to maintain a 15% CAR starting in <strong>20</strong>12.Most NBFCs are already working toward complyingwith this stricter requirement, which explains theirreducing debt-equity ratios.Portfolio Quality: Deterioration inPockets, Healthy OverallWhile global PAR > 30 deteriorated from a medianof 2.2% to 4.7% during the first five months of<strong>20</strong>09, 65 the average PAR > 30 for Indian MFIsstood at

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