V Vaidyanathan, Managing Director and Chief Executive Officer of the IDFC First Bank, on Tuesday, said that things have changed sharply in the last three months due to liquidity availability for micro, small and medium enterprises (MSMEs).

“Broadly, our feel is that the extent of damage is not as widely feared earlier. Restructuring numbers will not be as what they were initially estimated by ICRA and other rating agencies. So, overall things are getting better even at MSME,” he told CNBC-TV18 in an interview.

MSME business is back to 65-68 percent of pre-COVID levels, Vaidyanathan said.

“However, repayments have touched 95-100 percent, we spoke to a lot of small entrepreneurs, and it shows that when they are collecting about 80-90 percent or 70 percent of the pre-COVID numbers the first money is repaid to the bank.”

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(Edited by : Ajay Vaishnav)