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Ind-Ra downgrades FY26 outlook for microfin companies

Ind-Ra downgrades FY26 outlook for microfin companies

The sector-specific headwinds are expected to inflate operational and credit costs for microfinanciers in the medium term, Ind-Ra said. The rating agency expects asset quality stress for micro finance companies to continue in the near term with tightening of funding by banks and capital raising constraints expected to add to the challenges of the sector.

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