Non-banking financial companies (NBFCs) working as micro finance institutions (NBFC-MFIs) overtook commercial banks in terms of market share in micro loans in the second quarter of financial year 2022-23 (Q2FY23).
To sustain this lead, NBFC-MFIs will need to maintain a year-on-year (YoY) growth rate of over 25 per cent in disbursements, ensure robust underwriting and quality services, said MFI industry executives and analysts.
According to Sa-Dhan, an association of MFIs, the NBFC-MFI market share has dominated the sector for the first time in years with a share of 37.53 per cent, while banks have slipped to second position with a