Microfinance disbursements almost at pre-Covid level: MFIN
Microfinance loan disbursements are nearing pre-Covid levels, supported by increased demand, with NBFC-MFIs gross loan portfolio (GLP) increasing about 11% year-on-year in the third quarter of this fiscal year, a said the microfinance sector association MFIN on Monday.
MFIN said the gross loan portfolio of non-bank financial corporations and microfinance institutions (NBFC-MFIs) stood at Rs 74,712 crore as of December 31, 2020, up from Rs 67,255 crore a year ago. The microfinance industry’s gross loan portfolio in the third quarter of FY21 grew 10.1% year-on-year to Rs 2.32.648 crore.
“Fourteen banks hold the largest share of the microcredit portfolio with a total outstanding loan of Rs 97,956 crore, or 42.10% of the total microcredit universe. NBFC-MFIs are the second largest microcredit provider with an outstanding loan amount of Rs 72,128 crore, representing 31% of the industry’s total portfolio. SFBs (Small Finance Banks) have a total outstanding loan amount of Rs 39,062 crore with a total share of 16.79%. NBFCs represent an additional 9.06% and other MFIs represent 1.04% of the universe, ”said the industry association.
The top 10 states (based on universe data) constitute 82.16% in terms of GLP. West Bengal regained its position as the leading state in terms of outstanding portfolio, followed by Tamil Nadu and Bihar. Among the top 10 states, West Bengal has the highest average loan per single borrower at Rs 55,585, followed by Assam at Rs 48,578.
Alok Misra, CEO and Director of MFIN, said: “It is encouraging that the green shoots seen at the end of the second quarter have turned out to be true and that sector disbursements are nearing pre-Covid levels, supported by increased demand. ready to restart. means of subsistence. Disbursements during T3FY21 are around 96% of T3FY20, indicating that they are expected to reach normal levels by the end of T4FY20-21.
Lenders and investors continued to show full confidence in the microfinance industry, as evidenced by debt financing up 10.4% from the previous quarter and equity up 16%. 6% compared to the corresponding quarter last year, Misra said.