Microfinance sector grows 24% to Rs 2.93 lakh crore in June quarter


The microfinance sector grew 24% year-on-year to Rs 2.93 lakh crore with banks retaining its leadership position with 38.4% market share, the Microfinance Institutions Network (MFIN) said Wednesday.

Micro loan disbursals during the June quarter improved sharply to Rs 45,830 crore as compared with Rs Rs 25,503 crore seen in the same period a year ago. The number of loans disbursed rose to 1.16 crore against 71 Lakhs in the same period.

The sector serves 6 crore unique borrowers through 11.8 crore loan accounts.

Bandhan Bank and 11 other banks together hold the largest share of the micro loan portfolio with a total loan outstanding of Rs 1.13 lakh crore. NBFC-MFIs are the second largest provider of micro-credit with a loan amount outstanding of Rs 1.03 crores, accounting for 35% of the total industry portfolio.

Small finance banks have a total loan amount outstanding of Rs 49,646 crore with a total share of 16.9% while NBFCs account for another 8.8% and other MFIs account for 0.9% of the universe.

“Most institutions took some time in making policy changes and adapting to the new harmonised guidelines, but the industry was still able to record a growth of 23.5% in portfolio on a year-on-year basis and 2.7% over the previous quarter, which should see further strengthening in the coming quarters with a supportive operating and regulatory environment,” MFIN chief executive Alok Misra was quoted as saying in a statement issued by the industry body.

MFIN is an association of 56 NBFC-MFIs and 41 associates including banks, small finance banks and NBFCs.



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