NBFC-MFIs see 26% growth in Q1 FY'18: MFIN Report

Indicating improvement in non-banking finance company-microfinance institutions (NBFC-MFIs) business, the industry has seen 26 per cent growth during the first quarter of the current fiscal, says a report.
According to industry association Microfinance Institutions Network, the size of the microfinance industry stood at Rs 1.07 lakh crore in April-June period of 2017-18.
Going by the report, banks have become the largest provider of micro-credit with a loan outstanding of Rs 38,486 crore and 36 per cent share in the micro credit business.
NBFC-MFIs share stands at 31 per cent with loan portfolio of Rs 32,820 crores.
"There has been a decline of debt funding by 20 per cent year-on-year," the report said.

"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 per cent growth year-on-year," MFIN CEO Ratna Vishwanathan said.

"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-demonetisation level of under one per cent by that period," she added.

Further, Vishwanathan said she is optimistic about the industry's in the coming months.
NBFC-MFIs witnessed the growth of 19 per cent in number of clients which stands at 2.08 crore towards the end of the first quarter of the current financial year.
Over half of the total loan disbursements (58 per cent) during the concerned quarter came from five states, namely - Karnataka, Odisha, Bihar, Maharashtra, and West Bengal, the report said.