February 11, 2025 / 08:24 IST

In the last six months, shares of most microlending institutions and banks with exposure to microcredit have faced significant pressure. For instance, Bandhan Bank shares are down 24 around percent in the last six months, Jana Small Finance Bank slipped by a similar 25 percent, CreditAccess Grameen down by 17 percent, and Fusion Microfinance fell by around 41 percent.

What’s causing the selloff? Aside from the overall market downtrend, microcredit companies have been facing repayment pressure from their