Business Standard

Microfinance industry grew by 42.9 pc in Q1 of FY'20

Image

Press Trust of India New Delhi

The microfinance industry witnessed a 42.9 per cent growth in first quarter of 2019-20 over the corresponding period last year with the total loan portfolio at Rs 1,90,684 crore as on June 30, 2019, Microfinance Institutions Network (MFIN) said in a report.

The total number of microfinance loan accounts stood at 9.27 crore in April-June quarter of financial year 2019-20 (as on June 30, 2019) as compared to 6.68 crore accounts in April-June quarter of financial year 2018-19, MFIN, a RBI recognised self-regulatory organisation and industry association of the microfinance industry in India, said in its 30th issue of its Micrometer report.

 

"The entire microfinance industry has witnessed a growth of 42.9 per cent in Q1 FY 2019-20 over Q1 FY 2018-19 with the total loan portfolio (GLP) at Rs 1,90,684 crore as on June 30, 2019," it said.

As per the report, banks hold the largest share of portfolio in micro-credit with total loan outstanding of Rs 78,060 crore, which is 40.9 per cent of the total micro-credit universe.

"The larger share is primarily due to the merger of Bharat Financial Inclusion Limited (BFIL) with IndusInd Bank," it added.

Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) are the second largest provider of micro-credit with a loan amount outstanding of Rs 57,601 crore, accounting for 30.2 per cent of total industry portfolio, the report stated.

Small Finance Banks (SFBs) have a total loan amount outstanding of Rs 32,406 crore with total share of 17 per cent, NBFCs account for 10.8 per cent share, while other MFIs account for 1 per cent share in the microfinance universe.

"The increase in the loan portfolio and the loan accounts is symbolic of the enhanced needs and growing aspirations of microfinance customers across the country. The fact that this growth is balanced by an equally good portfolio quality is important as it reflects the industry's commitment to grow responsibly," MFIN CEO Harsh Shrivastava said.

Karnataka, Tamil Nadu, Bihar, Odisha and Uttar Pradesh are the five top states in terms of loan amount outstanding and account for 52 per cent of the total loan portfolio, as per the report.

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 29 2019 | 5:20 PM IST

Explore News