Debt funding in MFIs up 63% to Rs 35,759 cr in FY19, equity rises 42%

Liquidity improved, despite a challenging scenario, due to better portfolio quality. Barring few pockets where recovery was impacted due to debt waivers, overall delinquencies came down: Experts

Banks and financial institutions disbursed about of Rs 35,759 crore to microfinance institutions in FY19, representing a growth of 63 per cent over FY18, according to a report by MFIN (Microfinance Institutions Network).

In tandem, the total equity grew by 42 per cent during the same period to Rs 14,206 crore.  

According to experts, improvement in liquidity, despite challenging situation, was possible on account of better portfolio quality. Barring a few pockets, where recovery was impacted due to debt waiver schemes, the overall delinquencies came down,

According to Harsh Shrivastava, CEO, MFIN, “In 2018-19, microfinance in India showed rapid, regionally-balanced, and resilient growth.