New Delhi, Aug. 10 -- The impact of El Niño-related weather disruptions on rural borrowers has eased as rainfall conditions improved, with cash flows showing signs of recovery, Sadaf Sayeed, chief executive officer of Muthoot Microfin, said in an interview with Mint.

"Rain was deficient by 43% initially. The deficit reported now is only around 12% and we are seeing every week that the rain is covering up the deficit," Sayeed said. "The impact is not so much. There is a cash flow which has improved at the bottom of the pyramid. That is why our collection has also improved."

Rural borrowers accounted for over 97% of Muthoot Microfin's Rs.14,457 crore of assets under management in Q1. The company, one of India's large microfinance len...