Page 6 - Microfinance

Microfinance loans grow 11% to Rs 71,916 crore in Q2 FY23: Report

Microfinance loans in the country grew by nearly 11 per cent to Rs 71,916 crore during the second quarter of the current fiscal, industry data showed. Microfinance loans worth Rs 64,899 crore were disbursed during the same period a year ago. In terms of volume, a total of 1.81 crore loans were disbursed during Q2 FY2022-23, as against 1.85 crore loans in Q2 FY2021-22, as per the latest report by Microfinance Institutions Network (MFIN). According to the MFIN Micrometer Q2 FY2022-23 report, the country's microfinance loan portfolio stood at over Rs 3 lakh crore at end-September 2022, serving 6.2 crore unique borrowers with 12 crore loan accounts. "The overall microfinance industry currently has a total gross loan portfolio (GLP) of Rs 3,00,974 crore as on September 30, 2022... an increase of 23.5 per cent year-on-year over Rs 2,43,737 crore as on September 30, 2021," the report said. Of the total micro loans outstanding, the largest share of 37.7 per cent is held by 13 banks, amoun

Microfinance sector grows over 16-fold to Rs 2.85 trn in last decade: Study

The microfinance industry grew over 16-times in the last decade with a loan portfolio of Rs 2.85 lakh crore, a study has said. Going forward customer engagement and protection will lay ground for the long-term sustainable growth. According to the 'Micro Matters: Macro View - India Microfinance Review FY 2021-22' report by Microfinance Institutions Network (MFIN), NBFC-MFIs (microfinance institutions) were the only regulated entity offering micro loans till 2012. The portfolio of the industry grew by 16.5-times from Rs 17,264 crore in March 2012 to Rs 2,85,441 crore as of March 2022. Banks and NBFCs started disbursing micro loans from 2016 while small finance banks (SFBs) joined in 2017. The functioning of MFIN as an SRO (self-regulatory organisation) since 2010 has enabled the sector to build its growth on strong pillars such as customer protection, industry code of conduct and policy advocacy, all of which contribute towards the building a responsible finance ecosystem, Devesh ...

We're moving away from volatile corporate bulk deposits: RBL Bank MD & CEO

In a Q&A, R Subramaniakumar dwells on the lender's strategy to fuel growth in credit cards and microfinance, and plans to mop up deposits in an increasingly difficult market

Customer protection the core of new RBI microfinance rules: Dy governor Rao

These measures, along with a cap on repayment obligations and steps to check over-indebtedness introduced by the regulator, will eventually bring down interest rates for the borrowers, he says

MFI loans decline in June qtr; NPA situation improves, says report

The June quarter witnessed a marginal decline in the overall microlending outstanding on a sequential basis, but there was an improvement in the asset quality, a report said on Tuesday. There was a 0.2 per cent decline in the overall microfinance book to Rs 2.85 lakh crore during the three months to June when compared with the number as of March-end, the report by CRIF High Mark said. The micro loans were up 18 per cent when compared with the year-ago period, the report by the credit information company added. The April-June quarter last year, which saw the devastating second wave of the pandemic, had led to a massive impact on microlenders both from loan growth as well as delinquency perspective. The June quarter saw Rs 49,788 crore of loans being disbursed, which was 39.2 per cent lower than what was achieved by the industry in the preceding March quarter, but 88.9 per cent higher than the year-ago period, the report said. The value delinquency for loans overdue for over 90 days

Having more than one SRO is good for business: Sa-dhan CEO Jiji Mammen

'Multiple SROs mean a greater number of watchful eyes'

Ujjivan SFB reports 44 % YoY growth in advances in Q2, loan book expands

Lender reports 45% growth in deposits to Rs 20,389 crore at the end of the quarter

Microfinance disbursements slowed in Q1 FY23 after new regulations: MFIN

Lenders needed time to make policy changes after norms were updated in March 2022, says industry group

Expansion and advancement of Prayatna

.

Microfinance loans grow 24% YoY in Q1 of FY23; credit quality stable

Fund flow to the sector has improved but some smaller MFIs still find it difficult to access finance from banks

Microfinance loan securitisation grows over two-fold YoY in Q1FY23

Better recoveries, adequate credit enhancements spark investor confidence

Macro challenges of micro lenders

The freedom to fix interest rates has encouraged a few MFIs to jack up rates on Day One. It will take a while for borrowers to get the benefit as products, processes and digitisation evolve

ADB and HSBC India establish $ 100 mn guarantee plan for microcredit

ADB and HSBC programme will help women running small businesses and microfinance institutions lending after the pandemic.

Stress in 30 plus day dues in micro-loans declines in December quarter

Disbursements take a knock on Omicron concerns

Spandana Sphoorty looks to steady ship after over 4 months of uncertainty

The MFI, backed by private equity fund Kedaara Capital, experienced a jolt in November 2021 after Padmaja Reddy, founder and managing director (MD), quit abruptly.

New chapter in microfinance: End of overleveraging?

The RBI finally had to step in since self-regulatory organisations have failed to address a few banks' enthusiasm for overleveraging hapless small borrowers

BS Views of the week: Blow to globalisation, risks of imported energy, and more

Developments around the Russia-Ukraine war and elections in five states of India made the biggest news headlines in the week gone by. Besides these, Business Standard's opinion pages focused on risks of imported energy, poverty landscape, and a lot more

Northern Arc Group to acquire SMILE Microfin

The transaction will involve the takeover of the microfinance portfolio of S.M.I.L.E., along with its network of nearly 150 branches catering to over 0.2 million customers.

MFI Spandana Sphoorty expects to disburse Rs 1,000 cr in Q4 of FY22

The company had put disbursements on hold in Q3FY22 after its managing director Padmaja Reddy resigned abruptly last November

Spandana Sphoorty posts consolidated net profit of Rs 45.1 cr in Q3FY22

The income from operations of Spandana Sphoorty Financial on a consolidated basis, in the reporting quarter, rose marginally to Rs 346.1 crore compared to Rs 337.9 crore in Q3FY21.