 "Indian firms, firm funding, company loans")
Loans disbursed by non-banking financial companies-micro finance institutions (NBFC-MFIs) rose by 45.8 per cent year-on-year (Y-o-Y) to Rs 30,398 crore during April-June 2023 (Q1FY24) against Rs 20,845 crore during April-June 2022 (Q1FY23), according to Micro Finance Institutions Network (MFIN) data.
The surge in disbursements is on the back of slowdown in activity during April-June 2022 when lenders were reorganising working operations as the Reserve Bank of India (RBI) revised regulatory norms.
The changed norms provided a level-playing field for NBFC-MFIs compared to banks, which are also formidable players in the micro finance space.
Sequentially, however, the disbursements were much lower compared to Rs 41,490 crore in January-March 2023 (Q4FY23), the final quarter of FY23.
The loans were disbursed through 6.89 million accounts in Q1Fy24, up from 5.1 million accounts a year ago.
Sequentially, the number of accounts where loans were disbursed declined compared to 9.5 million accounts Q4FY23.
The average loan amount disbursed was Rs 44,114 per account during Q1 FY24, an increase of around 8.3 per cent from the same quarter of the previous financial year, MFIN said.
Assets under management (AUM) grew to Rs 1.26 trillion in June 2023 from Rs 89,005 crore a year ago. It was Rs 1.21 trillion as of March 2023.
Keeping with the rise in business activity, micro lenders added 2,500 branches in 12 months. This took the strength of the branch network to 17,706 in June 2023 against 15,202 a year ago.
On fundraise by NBFC-MFIs, the institution said they received a total of Rs 15,708 crore in debt funding in Q1 FY24, which is 65.7 per cent higher than Q1 FY23.
Banks contributed the most to NBFC-MFIs with a share of 64.5 per cent of the total borrowing. This was followed by external commercial borrowings of 13 per cent, non-bank entities at 12 per cent and financial institutions at 6.4 per cent.
The outstanding borrowings were Rs 93,113 crore at the end of June 2023, up from Rs 69,474 crore a year ago. They stood at Rs 90,902 crore at the end of March 2023.
