Page 5 - Microfinance

Micro loans grow 27% in March quarter, stress levels inch up: Report

The micro loans portfolio of various lenders grew by 27 per cent year-on-year for the March 2024 quarter, a report said on Tuesday. After remaining stable or improving over the last many quarters, the stress levels in terms of loan default inched up marginally during the quarter, the report by credit information company Crif High Mark said. At a time when the regulator is flagging concerns on unsecured loans, the data pointed out that personal loan outstandings of microfinance borrowers witnessed the second fastest growth among other retail assets with a portfolio growth of over 38 per cent. The gross loan portfolio grew 28 per cent to Rs 4.42 lakh crore in December, the report said, adding that the growth was 8.5 per cent as compared to the preceding December quarter figure. The top 10 states account for 83.5 per cent of the Gross Loan Portfolio (GLP), it said, adding that West Bengal, Bihar and Uttar Pradesh posted the fastest growth during the January-March period. However, the

Microfinance loans up 24.5% to Rs 4.3 trn in FY24, NBFC-MFIs see moderation

The total loan accounts rose to 149 million at the end of March 2024 from 130 million a year ago

A rethink on priority sector norms for SFBs can be helpful: ASFBI CEO

The Report on Trend and Progress of Banking in India (FY23) notes that some microfinance institutions among SFBs earlier retained their business models

No of MFI loans extended by lenders dips in Q2, average ticket sizes grow

The number of microfinance loans extended by all lenders declined in the September quarter, but an increase in the average ticket sizes helped in the quantum of lending to grow, a report said on Tuesday. The industry's self-regulatory body Microfinance Industry Network (MFIN) said the overall loan portfolio grew to Rs 3,76,110 crore at the end of September, up from Rs 3,55,977 crore in the previous quarter and Rs 3,00,974 crore in the year-ago period. The financiers made loans of Rs 76,054 crore in the September quarter as compared to Rs 71,916 crore in the year-ago period, but the number of loans declined to 1.69 crore from 1.81 crore. The average loan size increased to Rs 45,124 at the end of September as against Rs 39,725 in the year-ago period, and Rs 43,298 in the quarter-ago period, the report said. MFIN's chief executive and director Alok Misra said the industry added 1.9 crore unique borrowers in the first six months of the new fiscal, helping the wider agenda of financial

'Microfinance loan portfolio stands at Rs 3.76 trn at end of Q2FY24'

Microfinance loan portfolio at the end of the second quarter of the current financial year stood at Rs 3.76 lakh crore, serving 7.1 crore borrowers, an industry body report said. According to the report prepared by Microfinance Institutions Network (MFIN), a self-regulatory body of the NBFC-MFIs, microloan disbursals during the July-September quarter of 2023-24 touched Rs 76,054 crore, as compared to Rs 71,916 crore in the same period of the previous financial year. Gross loan portfolio (GLP) of the microfinance industry stood at Rs 3.76 lakh crore, reflecting a rise of 25 per cent over the year-ago period, the report said. NBFC-MFIs totalling 91 are the largest provider of microfinance, followed by banks, small finance banks and non-banking financial institutions. In terms of regional distribution of GLP, the east, the northeast and the south account for 63 per cent of the total portfolio, the report said. Among the NBFC-MFI members of MFIN, assets under management (AUM) stood at

NBFC-MFIs the largest provider of microfinance in India: MFIN Report

Microfinance Industry Network (MFIN), an umbrella body of microfinance institutions (MFIs) of the country, in its report said that NBFC-MFIs are the largest provider of micro-credit amongst other regulated entities. In a report of the MFI sector prepared by MFIN for the year 2022-23, it said that in the microfinance space, NBFC-MFIs provided finance with loan outstanding of Rs 1,38,310 crore as on March 31, 2023, accounting for 39.7 per cent of total industry portfolio. Banks, on the other hand, hold the second largest share of portfolio of micro-credit with total outstanding of Rs 1,19,133 crore, comprising 34.2 per cent of the total in the microfinance space. Small finance banks (SFBs) have a total outstanding of Rs 57,828 crore with a total share of 16.6 per cent, the report said. At the end of the last financial year, the total MFI portfolio stood at Rs 3,48,339 crore. According to the report, the MFI sector has immense growth potential with the market size estimated by MFIN t

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