By Tricitynews Reporter
Chandigarh
22nd August:- According
to the recently released report by Microfinance Institutions Network, the first
RBI appointed Self-Regulatory Organization(SRO) and an industry association,
Non-Banking Finance Company-Microfinance Institutions (NBFC-MFIs) have
registered 8% growth over last quarter and 26% growth YoY in Q1 FY18.
The size of the microfinance industry
stood at Rs 106,823 crore in Q1 FY18 basis the total outstanding loan
portfolio. Banks have become the largest provider of micro-credit with a
loan outstanding of Rs. 38,486 crore and 36% share in the micro credit
business. This includes both direct lending as well as indirect lending through
business correspondent partnerships. NBFC-MFIs share stands at 31% with loan portfolio
of Rs. 32, 820 crores. There has been a decline of debt funding by 20% on a YOY
basis.
Other key lenders such as Small
Finance Banks, NBFCs and Non-profit MFIs account for rest of the business.
Speaking on the report Ratna
Vishwanathan, CEO, MFIN said that the microfinance business has been
stable over the past quarter. The latest data also shows that there was a minor
increase in the total number of loans disbursed by NBFC-MFIs over the last year
which stands at 55.82 lakh but the increase in loan amount disbursed registered
21% growth YoY. Portfolio at risk numbers have also seen improvement which
shows that NBFC-MFI business is slowly returning to normalcy. However, we will
have to wait for another few quarters as we expect it to come back to pre-demonetization
level of under 1% by that period. We are optimistic about the industry growth
in the coming months.
NBFC-MFIs witnessed the growth of 19%
in number of clients which stands at 2.08 crore towards the end of Q1 FY18. The
loan amount disbursed in Q1 FY 17-18 by NBFC-MFIs increased by 21% compared to
Q1 FY 16-17 reaching to Rs. 11,959 crore. The latest data also shows that there
was a minor increase in the total number of loans disbursed by NBFC-MFIs over
the last year which stands at 55.82 lakh but the increase in loan amount
disbursed registered 21% growth YoY. Post demonetization due to delay in
repayments, there was a sudden deterioration in portfolio quality. However, PAR
>30 (Portfolio at risk) has decreased from 10.80% in Q4FY17 to 7.46% in
Q1FY17-18 which exhibits improvement in loan repayments.
The distribution of GLP is the
highest in South India at 31%, followed by North India at 26%, West India at
22% and East India at 21%. Over half of the total disbursements (which accounts
for 58%) during the concerned quarter came from five states, namely-Karnataka,
Odisha, Bihar, Maharashtra, and West Bengal.
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