NBFC microfinance institutions posted more than 50 percent growth in the gross loan portfolio at Rs 51,878 crore in April-June compared to the same period of last year, industry body Microfinance Institutions Network (MFIN) said today. During the first quarter of the fiscal, NBFC-MFIs disbursed 76 lakh loans worth Rs 17,836 crore witnessing a growth of 36 percent in a number of loans disbursed and 52 percent in loan amount disbursed.
The overall microfinance industry has grown by 39 percent year-on-year in April-June quarter of the fiscal and total size of the microfinance industry stands at Rs 1,48,097 crore, the MFIN said. The microfinance industry has gained pace, showcasing promising growth in the past quarters. As we see more new players entering the space and the current ones growing larger realizing their IPO plans, the coming period will mark a new chapter for the sector,” said CEO of MFIN Harsh Shrivastava. Cashless disbursements by NBFC-MFIs now account for 87 percent of the total disbursements.
In the quarter a total Rs 11,404 crore was disbursed in cash-less mode leading to cash-less disbursements in over 42 lakh loan accounts. In terms of regional distribution of portfolio (GLP), MFIN said east and north-east parts of the country accounted for 35 percent of the total NBFC-MFI portfolio. The south accounted for 26 percent, north 15 percent, west 14 percent and central India contributed 10 percent.
Karnataka, Odisha, Bihar, Uttar Pradesh and Tamil Nadu are the top five states in terms of loan amount outstanding, accounting for 53 percent of total GLP of NBFC-MFI segment. In terms of geographic categorization, 66 percent of the portfolio for NBFC-MFIs is rural and 34 percent is urban. Current membership/associates of MFIN consists of 48 leading NBFC-MFIs.