)
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 |
