44% yoy rise in GLP of 54 NBFC-MFIs: East, NE tops

NBFC-MFIs are the second largest provider of micro-credit with a loan amount outstanding of Rs576.01 billion, accounting for 30.2% to total industry portfolio. With respect to 54 NBFC-MFIs members of MFIN, the aggregate loan portfolio (GLP) of these members stands at Rs568.27 billion as on 30 June 2019. This represents a yoy growth of 44% and 4% qoq. NBFCs account for 10.8% and other MFIs accounts 1% share in the microfinance universe. Further, loan amount of Rs 161.37 billion was disbursed in Q1 FY2019-20 through 6.1 million accounts. The total loan accounts as on 30 June 2019 stood at 32 million with a 39% yoy growth as compared to last year.

According to Harsh Shrivastava, CEO, MFIN, the increase in the loan portfolio and the loan accounts is symbolic of the enhanced needs and growing aspirations of microfinance customers across the country. The fact that this growth is balanced by an equally good portfolio quality is important as it reflects the industry’s commitment to grow responsibly, he adds.

For MFIN members, Portfolio at Risk (PAR)>30 as on 30 June 2019 is 1.76% which has come down from 2.66% in the corresponding quarter of last financial year. This indicates a good overall health of the portfolio. In terms of regional distribution of portfolios, east and north east accounts for 34% of the total NBFC-MFI portfolio, south accounts for 27%, north holds 14%, west has a share of 15% and central contributes 10%. In terms of geographic spread, 74% of the portfolio is rural and 26% is urban. Five top states in terms of loan amount outstanding are Karnataka, Tamil Nadu, Bihar, Odisha and Uttar Pradesh which account for 52% of GLP.