· Aggregate Gross Loan Portfolio grows by 89% since Q1 FY15-16
· Employee base has grown by 43%
Chandigarh, 06 September, 2016: Microfinance industry has witnessed 29% growth in loan disbursements in the first quarter of FY2016-17 over the last year, according to the recently released quarterly report on the industry by Microfinance Institutions Network (MFIN), a Self-Regulatory Organisation (SRO) of the RBI regulated NBFC MFIs. In its 18th edition of the ‘Micrometer Report’ for Q1 FY16-17, MFIN observed that the microfinance industry has experienced a growth of 89% since Q1 FY15-16 and has grown by 9% over the last quarter.
The aggregate Gross Loan Portfolio (GLP) of MFIs stood at Rs 60, 165 crore in Q1 FY16-17 as compared to Rs 31, 869 crore in Q1 FY15-16. South India leads the way with 35% share in GLP followed by North at 25% and West at 24% and East contributing 16%. The industry also witnessed the Y-O-Y increase of 48% in client base where MFIs provided microcredit to 3.58 crore clients.
According to Ms. Ratna Vishwanathan, Chief Executive Officer, MFIN, “The Microfinance Industry has seen a substantial growth over the last one year. With the increase in number of branches, MFIs have been able to increase their outreach thus expanding their beneficiary base. Total number of loans disbursed has also seen an increase of 29% which significantly contributed to the expansion of the sector. Overall the growth has been healthy and it is an indicator of the fact that confidence in the sector has been growing and there is an evident interest in greater investments in NBFC MFIs.”
Over half (57 %)of the total disbursement during the quarter came from 5 states which include- Tamil Nadu, Karnataka, Maharashtra, Uttar Pradesh and West Bengal. Average loan amount disbursed for each beneficiary has also witnessed a growth and stands at Rs 19,930 with a growth of 27% since Q4 FY15-16. The employee base has grown 43% and the NBFC-MFIs now employ 98,287 employees which were 68,578 in the corresponding quarter of the last year. Branch network has also seen an increase of 28% in last one year and now stands at 10,458.
Number of loans disbursed grew by 29% over Q1 FY15-16 and loan amount disbursed grew by 64%. The total loan amount disbursed in Q1 FY16-17 was Rs 18,811 crore which was Rs 11, 487 crore in the corresponding quarter of the last year. In Q1 FY16-17, portfolio at risk (PAR) remained under 1%. The analysis presented in this issue is based on data collected from 57 NBFC–MFIs.
Given below are the Highlights from the quarter:
· As of 30th 2016, MFIs provided micro credit to over 3.58 crore clients, an increase of 48% over Q1 FY15-16
· The aggregate gross loan portfolio (glp) of MFIs stood at Rs 60,165 crore (excluding non performing portfolio i.e. PAR>180days in Andhra Pradesh). This represents a yoy growth of 89% over Q1 FY15-16 and an increase of 9% over the last quarter
· Disbursements (loan amount) in Q1 FY16-17 increased by 60% compared to Q1 FY15-16
· Total number of loans disbursed by MFIs grew by 29% in Q1 FY16-17 compared with Q1 FY15-16
· Portfolio at Risk(PAR) figures remained under 1% for Q1 FY16-17
· Average loan amount disbursed per account is now Rs 19,930. The figure for Q1 FY15-16 was Rs 15,662
· In terms of regional distribution (for glp), south is 35%, east at 16%, north at 25% and west at 24%
· Pension accounts were extended to over 21 Lakhs clients through MFI network
About Microfinance Institutions Network
Microfinance Institutions Network (MFIN) is the premier industry association and Self-Regulatory Organisation (SRO) for the microfinance industry in India and its current membership/associates consists of 53 leading NBFC (Non-banking Financial Company) Microfinance Institutions (MFIs) in the country. The aggregate business of MFIN members constitutes over 90 per cent of the Indian microfinance industry (excluding SHGs). MFIN seeks to work closely with regulators and other key stakeholders to achieve larger financial inclusions goals through microfinance.