MFI witnessed 84% growth in GLP in Q2, says MFIN

Microfinance industry witnessed 84 per cent year-on-year growth in aggregate gross loan portfolio (GLP) of microfinance institutions in second quarter of the financial year 2016-2017, says a report.
"The aggregate GLP of MFIs stood at Rs 57,941 crore in the second quarter of the financial year 2016-2017 as compared to Rs 31,551 crore in the same period last year," Microfinance Institutions Network (MFIN) said in a report here today.
MFIN is a self-regulatory organisation (SRO).
South India leads the way with 31 per cent share in GLP followed by north at 28 per cent and west at 25 per cent and east contributing 16 per cent, MFIN said.

As of end September, MFIs provided microcredit to over 3.3 crore clients, an increase of 54 per cent over the second quarter of the financial year 2015-2016.
"It is important to note that numbers for the second quarter of this financial year shows NPAs still at under 1 per cent and the loan recovery rate is well above 99 per cent," MFIN chief executive officer, Ratna Vishwanathan, said.

She said post November 8 the ground situation has undergone a certain change and the impact will be felt for the subsequent quarter.
Tamil Nadu, Karnataka, Maharashtra, Uttar Pradesh and Madhya Pradesh account for 54 per cent of the total Gross Loan Portfolio in the country, with Karnataka having the largest share.

During the quarter, MFIs disbursed 88.48 lakh loans worth Rs 18,955 crore.
Average loan amount disbursed per account last year was Rs 21,469 which represents a growth of 25 per cent over the second quarter of the last financial year.
MFIs indirectly provide life insurance to over 4.3 crore clients with total sum insured of over Rs 100,000 crore.
MFIs also indirectly facilitate over 23 lakhs pension accounts.
In the period under review, portfolio at risk (PAR) remained under 1 per cent, MFIN said.
Prime Minister Narendra Modi had announced his government's decision to demonetise Rs 1,000 and Rs 500 notes on November 8.