December, 2016: Microfinance industry has witnessed 84% YoY growth in Aggregate Gross Loan Portfolio (GLP) of microfinance institutions in second quarter of this financial year, according to the recently released quarterly report by Microfinance Institutions Network (MFIN), a Self-Regulatory Organisation (SRO) of the RBI regulated NBFC MFIs. There was an increase of 11% in the aggregate GLP from the last quarter. In its 19th edition of the ‘Micrometer Report’ for Q2 FY16-17, MFIN observed that the microfinance industry’s total loan disbursements grew by 20% in Q2 FY2016-17 over the last year.
The aggregate Gross Loan Portfolio (GLP) of MFIs stood at Rs 57,941 crore in Q2 FY16-17 as compared to Rs 31, 551 crore in Q2 FY15-16. South India leads the way with 31% share in GLP followed by North at 28% and West at 25% and East contributing 16%.As of 30th Sep 2016, MFIs provided microcredit to over 3.3 crore clients, an increase of 54% over Q2 FY 15-16.
According to Ms. Ratna Vishwanathan, Chief Executive Officer, MFIN, “Continuing a steady momentum of growth microfinance industry witnessed 84% of YoY growth in the aggregate Gross Loan Portfolio in the last quarter. It is important to note that numbers for Q2 FY16-17 shows NPAs still at under 1% and the loan recovery rate is well above 99%.Post November 8 the ground situation has undergone a certain change and the impact will be felt for the subsequent quarter.”
Tamil Nadu, Karnataka, Maharashtra, Uttar Pradesh and Madhya Pradesh account for 54% of the total Gross Loan Portfolio in the country, with Karnataka having the largest share. During Q2 FY 16-17, MFIs disbursed 88.48 lakh loans worth Rs 18,955 crore. Average loan amount disbursed per account last year was Rs 21,469 which represents a growth of 25% over Q2 FY 15-16.MFIs indirectly provide life insurance to over 4.3 crore clients with total sum insured of over Rs 100,000 crore. MFIs also indirectly facilitate over 23 Lakhs pension accounts.In Q2 FY16-17, portfolio at risk (PAR) remained under 1%.
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