MFI portfolio outside Andhra registers 39% growth

Compared to FY12-13, gross loan portfolio witnessed a rise of 23% on a pan India with AP MFIs growing 7% and non-AP MFIs witnessing a growth of 39%

 

The Microfinance Institutions Network (MFIN) on Tuesday said that during FY12-13 growth was witnessed mostly outside Andhra Pradesh (AP) with MFIs in the state showing a relatively slower pace of growth. Significant increase in lending was observed in states such as West Bengal, Tamil Nadu, Kerala, Bihar, Assam and Uttar Pradesh.

There was also a return of investor confidence as witnessed in the last quarter of FY 12-13 which was observed with the increase in debt funding to MFIs which rose by 79%. Compared to FY 11-12, the Gross Loan Portfolio witnessed a rise of 23% on a pan India with AP MFIs growing by 7% and non-AP MFIs witnessing a growth of 39%.

The study is based on data collected from 41 Non-Banking Finance Companies – Micro Finance Institutions (NBFC-MFI), who are members of MFIN and represent 85% of the microfinance business in the country (excluding SHGs).
 
Alok Prasad, CEO, MFIN, said, “At a pan India level, MFIs witnessed a growth of 23% during FY 12-13, a strong bounce back from last year when growth had slumped to a 14% decline in growth. This shows the inherent strength of the MFI business model and the need for micro-credit by BoP segment borrowers.”
 
Hinting at a better growth possibility in the coming fiscal year, Mr Prasad said that the role played by NBFC-MFIs in promoting financial inclusion can be strengthened if the Microfinance Bill gets enacted as it will then provide an overarching regulatory framework for the sector.

Key highlights:
 

Pan India increase in Gross Loan Portfolio by 23% as compared to FY 11- 12

Loan disbursals in FY 12 – 13 increased by 13% over the last fiscal year

22% increase in client base outside Andhra Pradesh

Increase in assets of non-AP MFIs by 38% and AP MFIs by 7%

As of March 31, 2013, MFIN members received total debt funding of Rs 102.03 bn, which is an increase of 79% over previous financial year FY 11-12

In FY 12- 13, Bandhan Microfinance registered the highest growth in clients and loans disbursed among MFIN member MFIs

Punjab, Kerala, Uttar Pradesh, Bihar and Haryana have been the fastest growing states in terms of Gross Loan Portfolio, followed by Jharkhand, Odisha, Gujarat, Madhya Pradesh and Maharashtra

Outside AP, West Bengal and Tamil Nadu have largest outreach followed by Karnataka and Maharashtra

Andhra Pradesh, West Bengal, Tamil Nadu, Karnataka and Maharashtra in total account for 63% of the clients

West Bengal has the largest branch network of MFIs, accounting for over 15% of all India network

Tamil Nadu tops the list in terms of loans disbursed followed by West Bengal, Karnataka, Maharashtra, Uttar Pradesh and Madhya Pradesh