Speaking on the first Issue of Micrometer for FY 21-22, Dr Alok Misra - CEO & Director, MFIN said, “Q1 21-22 saw both portfolio and disbursements rise on a YoY basis, though muted in comparison to Q4 20-21. This growth, despite difficult operating environment due to second wave of COVID-19 shows the ability of the industry to learn quickly and adapt to challenges. The Credit Guarantee Scheme for Micro Finance Institutions with focus on small and medium sized MFIs would ensure growth of MFIs in the short-term as fresh loans need to be disbursed using the funds received under this scheme. In the medium to long-term, the asset-class based regulations proposed in RBI’s consultative document, expected soon, would provide the much-needed impetus to industry to transform for a better future, leveraging on the past experience.”
Microfinance Universe (based on loans originated after February 2017)
- As on June 30, 2021, the microfinance industry served 5.68 crore unique borrowers, through 10.30 crore loan accounts. The overall microfinance industry currently has a total Gross Loan Portfolio (GLP) of INR 2,37,369 crores.
- GLP as on June 30, 2021, showed an increase of 4.2 per cent YoY over INR 2,27,727 crores as on June 30, 2020.
- 13 Banks hold the largest share of the portfolio in micro-credit with a total loan outstanding of INR 1,02,405 crores, which is 43.14 per cent of total micro-credit universe. NBFC-MFIs are the second largest provider of micro-credit with a loan amount outstanding of INR 75,021 crores, accounting for 31.61 per cent to total industry portfolio. SFBs have a total loan amount outstanding of INR 38,624 crores with a total share of 16.27 per cent. NBFCs account for another 7.89 per cent, and other MFIs account for 1.09 per cent of the Universe.
- The microfinance active loan accounts decreased by 0.67% during the past 12 months to 10.30 crores as on June 30, 2021.
- In terms of regional distribution of GLP, East & Northeast and South continue to accounts for 66% per cent of the total portfolio.
- GLP of NBFC-MFIs stood at INR 76,237 crores as on June 30, 2021, a 6.9 per cent YoY rise as compared to INR 71,301 crores as on June 30, 2020.
- The GLP includes owned portfolio of INR 65,206 crores and managed portfolio of INR 11,031 crores.
- As on June 30, 2021, NBFC-MFIs, on an aggregated basis, have a network of 15,066 branches with 1,22,024 employees.
- Loan amount of INR 6,511 crores was disbursed in Q1 FY 21-22 through 17.97 lakh accounts, as compared to INR 561 crores disbursed in Q1 FY 20-21 through 1.99 Lakh accounts.
- Average loan amount disbursed per account during Q1 FY 21-22 was INR 36,243 which is an increase of around 28.8% in comparison to same quarter of last financial year.
- NBFC-MFIs received a total of INR 3,596 crores in debt funding during Q1 FY 21-22, which is a 39.6 percent decrease from Q1 FY 20-21.
- Total equity of the NBFC-MFIs grew by 11.9 per cent YoY to INR 18,660 crores as on 30 June 2021.