MFIs' gross loan portfolio dips 1.1% to Rs 2.25 trn at Sep-end: Report

The gross loan portfolio (GLP) of microfinance lenders marginally dipped by 1.1 per cent to Rs 2,25,331 crore in the September quarter, according to a report by Sa-Dhan.

The gross loan portfolio stood at Rs 2,27,843 crore in the corresponding period of the previous fiscal.

Sa-Dhan, a self-regulatory organisation for the microfinance sector, has 229 members, including SHG promoting institutions, MFIs (for-profit and not for profit), banks, rating agencies, capacity building institutions etc.

Total disbursement of all lenders during the second quarter of FY22 was Rs 66,694 crore compared to Rs 34,135 crore disbursed during the same quarter of the last year, the report said.

Sa-Dhan Executive Director P Satish said the sector, which was affected in the first quarter of this financial year due to the second COVID wave, has seen improvement in repayments and fresh disbursements.

The decline is slowing down, although there remains stress on fund access and operations of mid and small MFI's, he added.

We hope and expect a gradual recovery by the next quarter as borrowers' incomes further stabilise, he said.

As of September 30, portfolio at risk (PAR) 30+ stood at 10.18 per cent, and PAR 90+ was at 2.96 per cent, the report said.

While average collection efficiency has increased to over 95 per cent in Q2 FY2022 from 85 per cent in Q1 FY2022, there are 13 states/UTs, including Lakshadweep, Assam, Mizoram, Manipur and West Bengal, with PAR 30+ value higher than the industry average of 10.18 per cent, the report said.