Micro-lenders' advances jump 46 pc to Rs 13,260 crore in Q3

Micro-finance lenders' loan disbursals have jumped 46 per cent in the December quarter to Rs 13,260 crore, up from Rs 9,090 crore a year ago, as these entities expanded their reach to over 28.7 million borrowers, says an industry report.
The clientele of the sector rose over 23 per cent as compared to the corresponding period last year to reach 28.7 million, the mutual fund industry's umbrella body Micro Finance Institutions Network (MFIN) said in its report.
The network has 47 members.
The aggregate gross loan portfolio of MFIs jumped by a massive 51 per cent to Rs 31,450 crore, excluding the non-performing portfolio in Andhra Pradesh, which is close to Rs 2,900 crore.

"We are witnessing a sustained revival of the micro-finance industry which augurs well for the national financial inclusion agenda.
"I am confident the industry will grow by over 40 per cent in gross loan portfolio terms this fiscal," MFIN chief executive Alok Prasad said.

While the number of loans grew 33 per cent, the average loan amount disbursed per account stood at Rs 16,194 for the December quarter, it said.
The top 10 MFIs control 80 per cent of the market -- led by Bandhan -- which saw 59 per cent surge in disbursements, followed by SKS Microfinance, whose disbursals grew at a tepid 10 per cent.

Among the states, West Bengal and Tamil Nadu are at the forefront, both in terms of the number of clients and branches, it said.
During the quarter, there was 162 per cent jump in debt funding received by MFIs, at Rs 9,070 crore.
Of this, 77 per cent came from banks and the rest from other financial institutions, the report said.
Securitisation by the micro-lenders also doubled during the period.
These lenders sold insurance policies to 30.3 million clients with the total sum insured at Rs 59,250 crore, while pension accounts were extended to 1.6 million clients.