For the first time since the microfinance institutions (MFIs) in Andhra Pradesh (AP) plunged into a crisis following the promulgation of an ordinance in October 2010 regulating their activities, the state-based MFIs have seen a growth in the gross loan portfolio (GLP) and also disbursements, according to MicroMeter.
MicroMeter is a quarterly industry report released by the Microfinance Institutions Network (MFIN), an association of non-banking finance company (NBFC) MFIs in the country. MFIN claims that the report captures key trends in the microfinance sector in India.
According to the report, the GLP of AP MFIs has increased 4 per cent to Rs 8,564 crore on a quarter-on-quarter basis in the third quarter of the current financial year.
The findings are based on the performance of nine MFIN members belonging to the state. These MFIs include SKS, Share, Spandana, Trident, Asmitha, L&T Finance and BSFL.
The report stated that the loan amount disbursed by AP MFIs during the Q3 of 2012-13 had increased 27 per cent to Rs 1,850 crore. Accordingly, the number of loans disbursed increased 20 per cent to 1.49 million.
On the other hand, the assets and equity of AP-based MFIs decreased 14 per cent and 93 per cent respectively during the period. While assets declined from Rs 9,100 crore to Rs 8,100 crore, equity plunged from Rs 2,100 crore to Rs 200 crore. Decrease in the equity of the state MFIs is attributed to higher provisions for AP portfolios.
On a pan-India basis, the aggregate GLP of the 41 members of MFIN reported a 14 per cent growth to Rs 18,639 crore during the third quarter of this year compared with the same period last year.
The GLP of non-AP MFIs increased 36 per cent to Rs 10,075 crore during the quarter.
Even in the case of disbursement, non-AP MFIs accounted for 70 per cent of the total disbursements in the country. Their loan disbursement during the quarter stood at Rs 4,345 crore.
MFIN chief executive officer, Alok Prasad, stated that the data signalled positive for NBFC-MFIs.
"The pan-India trends reveal that microfinance institutions continue to grow in states other than Andhra Pradesh," he added.
Nevertheless, according to the report, AP remains the top state in terms of client outreach - though largely inactive clients.
MicroMeter is a quarterly industry report released by the Microfinance Institutions Network (MFIN), an association of non-banking finance company (NBFC) MFIs in the country. MFIN claims that the report captures key trends in the microfinance sector in India.
According to the report, the GLP of AP MFIs has increased 4 per cent to Rs 8,564 crore on a quarter-on-quarter basis in the third quarter of the current financial year.
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However, compared with the same quarter in the previous year, the GLP had declined by 4 per cent.
The findings are based on the performance of nine MFIN members belonging to the state. These MFIs include SKS, Share, Spandana, Trident, Asmitha, L&T Finance and BSFL.
The report stated that the loan amount disbursed by AP MFIs during the Q3 of 2012-13 had increased 27 per cent to Rs 1,850 crore. Accordingly, the number of loans disbursed increased 20 per cent to 1.49 million.
On the other hand, the assets and equity of AP-based MFIs decreased 14 per cent and 93 per cent respectively during the period. While assets declined from Rs 9,100 crore to Rs 8,100 crore, equity plunged from Rs 2,100 crore to Rs 200 crore. Decrease in the equity of the state MFIs is attributed to higher provisions for AP portfolios.
On a pan-India basis, the aggregate GLP of the 41 members of MFIN reported a 14 per cent growth to Rs 18,639 crore during the third quarter of this year compared with the same period last year.
The GLP of non-AP MFIs increased 36 per cent to Rs 10,075 crore during the quarter.
Even in the case of disbursement, non-AP MFIs accounted for 70 per cent of the total disbursements in the country. Their loan disbursement during the quarter stood at Rs 4,345 crore.
MFIN chief executive officer, Alok Prasad, stated that the data signalled positive for NBFC-MFIs.
"The pan-India trends reveal that microfinance institutions continue to grow in states other than Andhra Pradesh," he added.
Nevertheless, according to the report, AP remains the top state in terms of client outreach - though largely inactive clients.