Microfinance industry growth slows to 24.22 pc in Q3
As on December 31, 2019, the industry served 5.64 crore unique borrowers through 10.11 crore loan accounts with operations in 619 districts in 36 states and union territories, according to a quarterly report released by Microfinance Institutions Network (MFIN).
"The industry has reached 30 per cent of the potential households in the country that need microfinance. There is hence immense scope for growth and expansion," MFIN chief executive officer Harsh Shrivastava said in the report.Banks hold the largest share of portfolio in micro-credit with total loan outstanding of Rs 83,876 crore, of the total micro-credit universe mainly due to merger of Bharat Financial Inclusion (BFIL) with Induslnd Bank during the first quarter of FY2019-20.
Small finance banks (SFBs) have a total loan amount outstanding of Rs 37,282 crore, NBFCs with total loan outstanding of Rs 21,591 crore and other MFIs account for Rs 2,395 crore in the microfinance universe.Based on the third quarter data available for 48 NBFC-MFI members, loan amount disbursed via cashless mode stood at 90 per cent.
Close to 80 per cent of the MFI members reported more than 90 per cent loan disbursements through cashless mode, according to the findings.In terms of regional distribution of portfolio (GLP), East and North-east accounts for 40 per cent, South accounts for 28 per cent, North holds 10 per cent, West has a share of 14 per cent and Central contributes 8 per cent. During October-December, NBFC-MFIs received a total of Rs 10,960 crore in debt funding, which was an increase of 16 per cent from the second quarter of FY2019-20, the report showed.
(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)
- TTD approves Rs 2,938-crore budget for 2021-22
- Wholesale growth expected to continue for tractors, passenger vehicles and two-wheelers, says equity research firm Emkay
- Centre finalises One District One Focus Product to promote in cluster approach
- A Mumbai-based EV startup launched the cheapest electric car with a 200 km range
- HP's worldwide shipments grow 5.6% in fourth quarter of 2020, says IDC