Banks' microloan portfolio contracts 7% to Rs 2.36 trillion in June quarter

Micro loan portfolio of lenders shrunk by 7 per cent to Rs 2.36 trillion in the June quarter (Q1FY22) over Rs 2.53 trillion in Q4FY21 (on economic disruption owing to second wave of Covid-19 pandemic.

 

The quarterly decline in gross loan portfolio (GLP) was seen across all lender types, including commercial banks, finance companies, according to CRIF Highmark.

 

The credit information bureau in Q1 review said the microfinance sector was quick to recover to pre-pandemic level by Q4FY21.

 

The enquiries for loans showed an upturn with month-on-month rise of 7 per cent in September 2021.