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MFI loan portfolio increases 25% year-on-year: Report – Banking and Financial News
The microfinance industry’s gross loan book rose 25% year-on-year to 4.3 trillion rupiah as of March 31, a Micro Finance Industry Network (MFIN) report said on Monday. The industry served 78 million unique borrowers through 149 million accounts.
NBFC-IMF are the largest microcredit provider, representing 39.4% of the total industry portfolio.
The outstanding loan of NBFC MFIs was Rs 1.7 billion as on March 31.
Assets under management of NBFC MFIs increased by almost 30% year-on-year to Rs 1.6 trillion. The AUMs include an off-balance sheet exposure of Rs 30,641 crore. The average loan amount disbursed per account increased by 9.9% to Rs 45,024 in 2023-24.
On an aggregate basis, NBFC-IMFs have a network of 20,348 branches with 1,83,842 employees.
During 2023-24 (April-March), NBFC MFIs received a total of Rs 89,308 crore in debt financing, which is 29.1% higher compared to 2022-23.
The total capital of NBFC MFIs increased 39% year-on-year to Rs 34,435 crore as of March 31. “This additional capital will enable entities to leverage and expand their operations in the coming years,” Alok Misra, CEO and director, MFIN, said.
Banks hold the second largest portion of the microcredit portfolio, which represents 33.2% of the total microcredit universe. The total outstanding loan from banks was Rs 1.4 trillion.
Small financial banks have a Marketplace market share of 17.1%, while diversified non-bank financial companies hold a market share of 9.3% in the microfinance segment.
In terms of regional distribution of the gross credit portfolio, the East, Northeast and South regions account for 62% of the total portfolio. Bihar continues to be the largest state in terms of backlog, followed by Tamil Nadu and Uttar Pradesh.