Grameen Koota to write off 3-5 per cent of loans

KOLKATA: Microfinance company Grameen Koota may write off 3-5% of its Rs 3075 crore loans owing to non repayment, managing director Udaya Kumar told ET.

All micro lenders are expected to face asset quality stress in varying degree, estimated to be between 1 and 10% of loans, although their collection efficiency has improved significantly compared to what it was during the first few months to demonetisation.

Kumar said the Grameen Koota is looking to make a provision of Rs 100 crore, which is two-third of the possible write-offs.

He is expecting Rs 75 crore profit for FY17, compared to Rs 84 in the preceding one.

Board of directors of the Bangalore-based MFI is slated to meet on May 17 to consider the financials.

The lender operates across the states of Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh and Chhattisgarh.

Netherlands-based Asian microfinance player CreditAccess Asia holds 99% in Grameen Koota.