You are here: Home » Economy & Policy » News
Business Standard

Microfinance loan portfolio grows 11.9% as on March-end, says MFIN

The industry's gross loan portfolio (GLP) surged to Rs 259,377 crore

Topics
microfinance industry | Microfinance | microfinance institutions

Press Trust of India  |  Mumbai 

Image via Shutterstock
Representational image

The overall industry's gross loan portfolio (GLP) surged by 11.9 per cent to Rs 2,59,377 crore as on March 31, 2021 from Rs 2,31,787 crore as on March 31, 2020, says a report.

The growth was driven by an addition of 4 lakh borrowers during the pandemic-struck 12-month period ending March 2021, according to a report Micrometer, released by Institutions Network (MFIN).

MFIN is an industry association comprising 58 NBFC-MFIs and 39 associates including banks, small finance banks (SFBs) and NBFCs.

As on March 31, 2021, the industry served 5.93 crore unique borrowers, through 10.83 crore loan accounts, the report said.

It said 13 banks hold the largest share of the portfolio in micro-credit with a total loan outstanding of Rs 1,13,271 crore, which is 43.67 per cent of total micro-credit universe.

Non-banking financial companies- (NBFC-MFIs) are the second largest provider of micro-credit with a loan amount outstanding of Rs 80,549 crore, accounting for 31.05 per cent to total industry portfolio, the report showed.

Small finance banks (SFBs) have a total loan amount outstanding of Rs 41,170 crore with a total share of 15.87 per cent.

NBFCs account for another 8.36 per cent, and other MFIs account for 1.05 per cent of the total microfinance universe, it said.

The report further showed that the gross loan portfolio of NBFC-MFIs increased by 11 per cent to Rs 81,475 crore as on March 31, 2021, compared to Rs 73,412 crore as on March 31, 2020.

This GLP on NBFC-MFIs includes owned portfolio of Rs 68,894 crore and managed portfolio of Rs 12,581 crore, it said.

The association said its NBFC-MFI members disbursed Rs 57,891 crore of loans in fiscal 2020-21 through 1.70 crore accounts.

Average loan amount disbursed per account during FY20-21 was Rs 35,726, an increase of around 20 per cent in comparison to last financial year, the report said.

During FY2020-21, NBFC-MFIs received a total of Rs 40,797 crore in debt funding which is 9.2 per cent higher than FY2019-20.

Total equity of the NBFC-MFIs grew by 15 per cent to Rs 18,663 crore as on March 31, 2021.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, June 30 2021. 15:15 IST
RECOMMENDED FOR YOU
.