Re­search Re­port-Mi­cro Credit

Banking Frontiers - - Contents -

The en­tire mi­cro­fi­nance in­dus­try has wit­nessed a yoy growth of 42.9% with the to­tal loan port­fo­lio (GLP) at Rs1.90 tril­lion as on 30 June 2019, as per the 30th is­sue of ‘Mi­crom­e­ter’ of Mi­cro­fi­nance In­sti­tu­tions Net­work (MFIN). The to­tal num­ber of mi­cro­fi­nance loan ac­counts stood at 92.7 mil­lion as on Q1 FY 2019-20, as com­pared to 66.8 mil­lion a year ago.

Banks hold the largest share of port­fo­lio in mi­cro-credit with to­tal loan out­stand­ing of `780.60 bil­lion, which is 40.9% of the to­tal mi­cro-credit uni­verse. The larger share is pri­mar­ily due to the merger of Bharat Fi­nan­cial In­clu­sion with In­dusInd Bank.

Small Fi­nance Banks (SFBs) have a to­tal loan amount out­stand­ing of `324.06 bil­lion with to­tal share of 17.0%. In Q1 2019-20, 8 SFBs were op­er­a­tional in 596 dis­tricts of 36 states and union ter­ri­to­ries. Over the last one year up to June 2019, the SFBs have shown a rea­son­able growth of around 46% in com­par­i­son to other en­tity types.

As of 30 June 2019, banks had a mi­cro­fi­nance port­fo­lio of `780.60 bil­lion, rep­re­s­en­ing a growth of 74% over last one year. The av­er­age ticket size of the banks was `41,301 for Q1 2019-20, an in­crease of 16% from Q1 2018-19. It is the high­est among all en­ti­ties ac­tive in this space. The av­er­age ticket size of the SFBs at `32,875 dur­ing Q1 2019-20 is com­pa­ra­ble to the NBFC-MFIs and in­creased by 10% in com­par­i­son to the dis­burse­ments dur­ing Q1 2018-19.

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