NPAs rise in tandem as MFIs gross loan portfolios grow by 29% in FY20

More than 92 per cent of MFI loan disbursement in FY20 were in cashless mode, as compared to 85 per cent in FY19

Even as the gross loan portfolio of the microfinance sector registered a growth of 29.26 per cent on a year-on-year basis last financial year, the portfolio at risk continued to be on the higher side.

According to data released by MFIN (Microfinace Institutions Network), the microfinance representative body, the gross loan portfolio (GLP) of the MFI sector as on March 31, 2020 was Rs 2,31,788 crore, against 1,79,314 crore as on 31st March 2019. 

At the same time, the PAR>30 (portfolio of risk for more than 30 days), increased from about one per cent at the end of Q4 of