Microfinance Loan Disbursements grow by 50%

Microfinance Institutions Network (MFIN) released the seventh issue of the MicroMeter on the status of the Indian microfinance industry, as of 30 September 2013.

This report provides a comparative analysis with the corresponding quarter of previous fiscal year (Q2 FY 12-13) and previous quarter of the current fiscal year (Q1 FY 13-14). The aggregate Gross Loan Portfolio (GLP) of Micro Finance Institutions (MFIs) grew by 54%, with over 90% MFIs (other than CDR MFIs) showing positive Year on Year growth over Q2 FY 12-13.

The Total Loan Disbursals increased by 50% compared to Q2 FY 12-13 while loan amounts disbursed specifically for MFIs grew by 65%. Funding to the industry (during Q2 FY 13-14) grew by close to 300% compared with Q1 FY 13-14. 

The data also reflects the growing confidence of investors in the industry. During Q2 FY 13-14, funding has picked up with an increase of 297% over Q1 FY 13-14. MFIs received total debt funding of Rs 37.80 billion out of which 86% came from Banks and rest from other Financial Institutions (FIs).

Mr. Alok Prasad, CEO, MFIN, said, “MFIs are dedicated to bringing affordable financial access to the unbanked and the under-banked. The industry data is showing extremely positive trends. Also, it is heartening to see the high growth rates of MFIs in the hitherto under penetrated states such as Uttarakhand, Rajasthan, Punjab and UP. The microfinance industry’s contribution to promoting access to finance and micro-entrepreneurship is clearly very good news for the larger national agenda of inclusive growth.”

The analysis presented in this issue is based on data collected from 42 MFIs which on an aggregated basis, constitute around 85% of the microfinance business in the country (excluding SHGs)

Highlights

··   Total industry GLP grew by 30 % compared to the Q2 FY 12-13

··   GLP of MFIs (other than CDR MFIs) grew by 54 %, with over 90 % MFIs (other than CDR MFIs) showing positive YoY growth over Q2 FY 12-13

··   Funding to the industry (during Q2 FY 13-14) grew by close to 300% compared with Q1 FY 13-14

··   Total loan disbursals increased by 50 % compared to the Q2 FY 12-13. Loans disbursed for MFIs (other than CDR MFIs) grew by 65 %

··   PAR figures (PAR 30, 90, 180) for the MFIs (other than CDR MFIs) remained under 1 % for Q2 FY 13-14

··   Average loan amount disbursed, on a pan India basis, remained below Rs. 15,000

··   Industry productivity ratios continued to improve

··   Lending in states such as Uttarakhand, Rajasthan, Punjab and UP grew significantly

··   Life insurance to over 24 mn clients with sum insured of Rs. 386 bn extended through MFI network

··   Pension accounts to 0.7 mn clients provided through MFI network

About Microfinance Institutions Network

Microfinance Institutions Network (MFIN) is the premier industry association for the microfinance industry in India and its current membership consists of 42 leading NBFC (Non-banking Financial Company) Microfinance Institutions (MFIs) in the country.

The aggregate business of MFIN members constitutes over 85 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.

 For Media Contact

Daniel - Blue Lotus Communication

Chennai

95000 55980

daniel@bluelotuspr.com 

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