New Delhi, Oct. 9 -- The Reserve Bank of India's recent repo rate hike could tighten credit availability for microfinance institutions (MFIs) and put pressure on their margins, industry executives said, while noting that the extent to which lenders pass on higher borrowing costs to borrowers remains uncertain.

Speaking to ANI on the sidelines of Sa-Dhan's 21st Annual National Conference on Inclusive Growth, Jiji Mammen, Chief Executive Officer of Sa-Dhan, said the 25-basis-point increase in the repo rate from 5.25 per cent to 5.50 per cent was unlikely to have a major immediate impact on the microfinance sector, as most institutions were adequately capitalised.

"I don't think it is going to create much kind of a problem, especially in m...