Kotak Mahindra Bank revamps microfinance play, cuts JLG exposure amid cyclical stress
Published on: Dec. 17, 2025, 12:39 a.m. | Source: The Economic Times
Kotak Mahindra Bank is restructuring its microfinance portfolio, significantly reducing joint liability group (JLG) loans to focus on individually underwritten loans. The bank aims to rebuild its microfinance book to previous levels, cautiously expanding to manage the cyclical nature of the business. Early indicators for its new underwriting model are encouraging, with improved collection efficiency.
