Page 5 - Microfinance

Utkarsh SFB surges 17% on heavy volumes; zooms 141% over issue price

Till 12:09 PM, a combined 34.73 million equity shares, representing 3 per cent of total equity of Utkarsh SFB, had changed hands on the NSE and BSE

As indebtedness rises, microfinance industry has amber lights switched on

MFIs are now the largest providers of micro-credit with loans outstanding of Rs 1,42,245 cr at end-May 2023

A new dawn for microfinance

There are many contributing factors to the growth and new-found enthusiasm for microfinance

First time in 4 years, MFIs overtake banks in microlending with 40% share

After a gap of four years, standalone MFIs overtook banks in microlending in 2022-23 with a 40 per cent share of loans in the country, up from 35 per cent in the last year, according to an analysis. On the back of recovery after being hit hard during the pandemic when collections and disbursals plunged, MFIs have clawed back from 32 per cent share in FY20, which declined further to 31 per cent in FY21 before improving to 35 per cent in FY22. As of March 2023, MFIs held a 40 per cent share of the overall microfinance loans, registering a 37 per cent growth, compared to banks' 34 per cent, down 600 bps from the previous fiscal, Care Ratings said in a note on Wednesday. Almost all banks have an MFI book as part of meeting their priority lending targets. Banks controlled 34 per cent of the industry's Assets Under Management (AUM) in FY23 -- down from 40 per cent in FY20 and FY22. Their share had peaked at 44 per cent in FY21. The microfinance industry grew by 37 per cent in FY23 due t

India's microfinance sector will continue to thrive, get bigger

It is important to appreciate the virtues displayed by stakeholders towards the vision of empowering low-income households

Microfinance loan portfolio up 22% to Rs 3.48 trillion in FY23, shows data

Microfinance loan portfolio increased by 22 per cent to Rs 3.48 lakh crore during 2022-23, according to a report. Gross loan portfolio stood at Rs 2.85 lakh crore as on March 31, 2022. Microfinance loan disbursals during FY 2022-23 improved by 23 per cent to Rs 2,96,423 crores compared to Rs 2,39,433 crore in the previous financial year. About 7.17 crore loans were disbursed during FY 22-23 as against 6.30 crore in the previous year indicating higher ticket size of new loans, microfinance institutions network (MFIN), the microfinance industry association and an RBI-recognized self-regulatory organization. The microfinance active loan accounts increased by 14.6 per cent during the past 12 months to 13 crore as on March 31, 2023. In terms of regional distribution of gross loan portfolio, East & Northeast and South account for 63 per cent of the total portfolio. Bihar is the largest state in terms of portfolio outstanding followed by Tamil Nadu and Uttar Pradesh, it said. It furthe

Microfinance grows by nearly 10 times in 10 years to cross Rs 5 trn mark

Microfinance in India has a long history. Since turn of this century, it has been expanding rapidly as a viable financial services business because of influx of Microfinance NBFCs

Microfinance loans grow 21.3% YoY to Rs 3.5 trn in FY23, says report

New regulatory norms have helped industry clocking robust demand

Tata Capital launches payment facility, UPI 123PAY for feature phone users

UPI 123PAY will be useful, especially for payments of low-value and microfinance customers

Muthoot Microfin expects 50% of its collections to come digitally by Sept

The third largest microfinance lender Muthoot Microfin expects 50 per cent of its collections to come digitally by September, up from 34 per cent now. The Kerala-based lender from the Muthoot Pappachen Group, collected as much as Rs 1,000 crore or 34 per cent of its entire collection digitally as of March, which was only Rs 168.30 crore in the previous fiscal. Its monthly collections average at Rs 550 crore now. "For the first time our digital repayments have crossed Rs 1,000 crore in FY22 -- Rs 1,088 crore to be precise, which is 34 per cent of our total collections -- which is a growth of 547 per cent on-year. Already our loan disbursals are only done digitally. And we want to take this to at least 50 per cent by September this year, chief executive Sadaf Sayeed told PTI over phone. The microlender expects to disburse 25-30 per cent more loans this fiscal, taking its assets to around Rs 12,000 crore, on the back of a 47 per cent growth in the just-concluded fiscal. The company ..

Finance ministry to launch three-month campaign to boost micro-insurance

The department has advised chief secretaries of States/ UTs and chairman and CEOs of Public Sector Banks (PSBs) to extend full support during the campaign

Microfinance loan disbursal rise 19% to Rs 77,877 cr in Q3: MFIN Micrometer

Loan disbursals by microfinance companies increased 19 per cent to Rs 77,877 crore during December quarter 2022-23, said the MFIN Micrometer. The total microfinance loan portfolio increased to Rs 3.21 lakh crore as on December 31, 2022, the report said. "Microfinance loan disbursals during Q3 FY 22-23 improved to Rs 77,877 crore as compared to the same quarter of last financial year (Rs -65,392 crore). 189 lakh loans were disbursed during Q3 FY 22-23 as against 165 lakh in Q3 FY 21-22, indicating higher ticket size of new loans," it said. It further said that as on December 31, 2022, the microfinance industry served 6.4 crore unique borrowers, through 12.6 crore loan accounts. "The overall microfinance industry currently has a total Gross Loan Portfolio (GLP) of Rs 3,20,584 crore. GLP as on December 31, 2022, showed an increase of 25.2 per cent YoY over Rs 2,56,058 crore as on December 31, 2021," the report said. As per the 44th issue of MFIN Micrometer, 83 NBFC-MFIs were the larg

We need to have a level-playing field with banks: Manappuram Finance CEO

It makes sense to go for bank gold loans if customers are borrowing larger ticket sizes, like Rs 10 or Rs 15 lakh, and for a longer period

Microfinance portfolio jumps by 26% in December quarter, says report

Microfinance portfolio for lenders grew 26 per cent to more than Rs 3.24 lakh crore at the end of the December quarter, an industry body said on Friday. The micro credit portfolio for all the lenders combined together stood at Rs 2.56 lakh crore in the year-ago period, and Rs 3.04 lakh crore at the end of the preceding September quarter, according to data collected by Sa-Dhan, an association of impact finance institutions. In the December quarter, the Non-Bank Finance Companies-Microfinance Institutions (NBFC-MFI) segment witnessed a faster growth in portfolio at 43.37 per cent as against 9.23 per cent for banks. The fastest growth was reported by the NBFCs segment at 59.14 per cent, which helped its overall market share to grow to nearly 8.50 per cent as against 6.69 per cent in the year-ago period. Sa-Dhan's executive director and chief executive Jiji Mammen said festivities and a resurgent economy helped the industry post a healthy growth in the December quarter. "The overall m

MFIs set for better days, as collection improves, loan sales jump

Microfinance players have already come out of the massive hit they took during the pandemic and are likely to report lower credit cost by the end of this fiscal, as growth momentum is on an upswing, says a report. India Ratings has revised the outlook on the microfinance sector to 'improving' from 'neutral' and has also maintained the 'stable' rating outlook for FY24. It expects the sector to notch up high double-digit growth of 20-30 per cent, on improved collections and disbursals. It sees the credit cost to improve to 1-3 per cent from 1.5-5 per cent this fiscal. Microfinance institutions have already absorbed the impact of the pandemic by the December quarter, India Ratings said in a note on Wednesday. It expects the growth momentum to continue in FY24, as disbursements are picking up, which in turn will lead to higher growth. According to India Ratings, there are two key risks for the microfinance sector over the next 12-18 months -- inflation and elections. These may impact

By March, we'll be closer to pre-Covid levels: ESAF Small Finance Bank MD

Thomas says the bank expects to bring the microfinance portfolio down to 60 per cent of its book

Microfinance attracts renewed attention after RBI's interest rate cap move

Within months of the RBI lifting the interest rate cap on such loans, the industry is seeing a steady rise in borrowing, especially among women in some of India's poorest districts

Focus on core business, entering banking space on hold: Satin Creditcare MD

Disbursement figures rising, pain of pandemic over for microfinance sector: H P Singh

Securitisation volumes see over 40% YoY uptick in 9-month of FY23: Crisil

The commercial vehicle segment witnessed 31 per cent growth and microfinance segment saw 14 per cent growth in the securitisation market

Outstanding microfinance loan portfolio to rise 20.3% in FY23: MFIN

Outstanding loan portfolio of the micro-finance institution (MFI) sector across India will increase around 20.3 per cent at Rs 3.25 lakh crore in 2022-23 compared to the previous fiscal, said the MFIN, a self-regulatory organisation (SRO) recognised by RBI. During the last fiscal, the total outstanding of the MFI sector was Rs 2.7 lakh crore, and the sector had created around 1.32 crore jobs in the country since 2000, Micro-Finance Institution Network (MFIN) CEO Alok Misra said on Tuesday. "The MFI sector's outstanding for the current fiscal will be around Rs 3.25 lakh crore. There will be a 20.3 per cent rise over the previous fiscal year," Misra told reporters here on Tuesday. The collection efficiency ratio of the sector during the pandemic of 2021 and 2022 had been affected as group gatherings did not take place properly. "But the collection efficiency ratio at present has increased to 97 per cent for the sector from 70 per cent during the pandemic," Misra said. According to a