Research Report-Micro Credit
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.