Microfinance loan portfolio rises 29.26 pc in FY20 to Rs 2,31,788 cr
Kolkata/UNI: The microfinance industry served 5.89 crore unique borrowers through 10.54 crore loan accounts as on March 31, 2020.
Microfinance Institutions Network (MFIN), an RBI recognized self-regulatory organization and industry association of the microfinance industry in India, today released its 33rd issue of its Micrometer report for January-March 2020 i.e. Q4 FY 2019-20.
The industry currently has a total loan portfolio of Rs 2,31,788 crore for loans originating after February 2017.
Speaking on the occasion, Harsh Shrivastava, MFIN CEO said, “In a difficult year, it is heartening that microfinance was able to get more liquidity from its lenders and in turn increase its outreach by adding new branches, hiring more staff, and thus reach more borrowers.”
Banks hold the largest share of portfolio in micro- credit with total loan outstanding of Rs 92,281 Cr, which is 39.8% of total micro-credit universe. NBFC-MFIs are second largest provider of micro-credit with a loan amount outstanding of Rs 73,792 Cr, accounting for 31.8% to total industry portfolio. SFBs have a total loan amount outstanding of Rs 40,556 Cr with total share of 17.5%. NBFCs account for another 9.8% and other MFIs account for 1.1% of the universe.
As on 31 March 2020, aggregated GLP of MFIN Member NBFC-MFIs stood at Rs 74,371 Cr with a growth of 31% in comparison to 31 March 2019. The average ticket size of these NBFC-MFIs at Rs 27,754 during FY 2019-20 is an increase of 6% over FY 2018-19.
In terms of regional distribution of portfolio (GLP), East and North East accounts for 34% of the total NBFC MFI portfolio, South 27%, North 13%, West 15% and Central contributes 11% percent.
Five top states in terms of loan amount outstanding for MFIN Member NBFC-MFIs are Bihar, Karnataka, Tamil Nadu, Maharashtra and Odisha. They account for 49 per cent of GLP and top 10 states account for 79 per cent of the total loan amount outstanding.
During FY 19-20, MFIN Member NBFC-MFIs disbursed 2.78 crore loans worth INR 77,072 crore and compared with FY18-19, there has been a YoY increase of 16 per cent in number of loans disbursed and 23 per cent in loan amount disbursed. Top 10 MFIs in terms of loan amount disbursed accounted for 70 per cent of industry disbursements in FY19-20.
During FY 19-20, MFIN Member NBFC-MFIs received a total of INR 42,150 crore in debt funding (from Banks and other Financial Institutions).
This represents a growth of 33 per cent compared to FY18-19, when they received INR 31,688 crore.
As on 31 March 2020, NBFC-MFIs, on aggregated basis, have a network of 14,275 branches and employee base of 1,16,738.
Based on Q4 FY19-20 data available for 54 NBFC MFI Members, loan amount disbursed through cashless mode is 92%. Majority of Members MFIs (83 %) have reported that more than 90% of their disbursement happen in Cashless mode.
The Asset Liability Management (ALM) analysis shows that all sizes of NBFC-MFIs are well placed in terms of ALM across various buckets.
It is evident from the ALM analysis that borrowings of MFIs are of longer term while assets are of shorter-term. As a result, they have a comfortable gap as on 31 March 2020 to manage their obligations for the current quarter (April–June 2020).
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