I would like to highlight one significant change that has been introduced to address the risks in the business models of some NBFC-MFIs. Earlier, the threshold on microfinance loan portfolio of NBFC-MFIs was calculated as a percentage of net assets which meant that NBFC-MFIs could potentially have a significantly large share of their total assets deployed in the form of 'bank balances'.
Industrial production continues to decline sharply, reflecting such developments in final demand and a further buildup of excess inventories of electronic parts and some materials. Corporate profits and business sentiment are also worsening particularly in manufacturing. Income conditions of households have not yet deteriorated, but the decline in production is starting to affect the household sector mainly through the decrease in hours worked.