Microlenders struggle for survival despite debt recast

.....these firms can survive only if banks convert their loans to equity and RBI relaxes norms related to provisions to cover bad loans in Andhra Pradesh. While a relaxation from the apex bank is widely expected, commercial banks are reluctant to convert their loans to equity or offer fresh funds fearing they will have to take a further hit on their exposure. RBI norms say MFIs need to make 100% provision on non-performing assets (NPAs) from 1 April 2013.......

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Read - Mint