Microfinance industry posts 43% growth in Q3

Microfinance industry posted 43.1 per cent growth in December quarter 2018 as compared to the year-ago period, with a total loan portfolio of  1,66,284 crore, a report by MFIN said on Monday.

The total number of microfinance accounts also witnessed an annual growth of 24.3 per cent with 8.91 crore active loan accounts in the third quarter of 2018-19, the report said.

Microfinance Institutions Network (MFIN) is an RBI recognised self-regulatory organisation and industry association of the microfinance industry.

Non-Banking Finance Company-Microfinance Institutions (NBFC-MFIs) hold largest share of portfolio in micro-credit with total loan outstanding of Rs 60,631 crore, which is 36.5 per cent of total micro-credit universe.

“Among the MFIN members we have observed that 81 per cent of the disbursements to the clients are being done through cashless mode.

“In fact, some of the member NBFC-MFIs have even reported 100 per cent cashless disbursements,” said MFIN CEO Harsh Shrivastava.

MFIN members constitute 50 NBFC-MFIs and collectively they disbursed  19,919 crore in October-December to 77 lakh accounts.

During the latest quarter, member NBFC-MFIs received a total of  8,235 crore in debt funding.

In terms of regional distribution of total portfolio (GLP) in the country, the report said East and North East account for 37 per cent of the total NBFC-MFI portfolio, South 25 per cent, North 14 per cent, West 15 per cent and Central contributes 9 per cent.

In the microfinance industry, NBFC-MFIs’ share stood at 36.5 per cent, banks contribute 32.2 per cent, small finance banks 18.2 per cent and NBFCs 10.7 per cent and non-profit MFIs accounted for 2.4 per cent.

[“source=thehindubusinessline”]