‘2.11 cr borrowers added in 2 yrs’
The highlights of the report shows that the entire microfinance industry has had a tempered growth of 24.22% in Q3 FY 2019-20 over Q3 FY 2018-19.
PUNE: A recent report published by Microfinance Institutions Network (MFIN), an RBI recognised self-regulatory organisation and industry association of the microfinance industry, stated that an estimated 2.11 crore unique borrowers were added in less than 2 years, beginning March 2018.
As per the report, as on December 31, 2019, the microfinance industry serves 5.64 crore unique borrowers through 10.11 crore loan accounts with operations in 619 districts in 36 states and union territories.
Speaking on this, MFIN CEO Harsh Shrivastava said, “The industry has reached 30% of the potential households in the country that need microfinance. There is hence immense scope for growth and expansion. With credit now reaching almost every part of the country, microfinance is well positioned to make a long lasting impact in the quality of lives of the low-income households.”
The highlights of the Micrometer report for December 31, 2019 shows that the entire microfinance industry has had a tempered growth of 24.22% in Q3 FY 2019-20 over Q3 FY 2018-19 with the total loan portfolio (GLP) at Rs 2,11,302 crore as on December 31, 2019. This is based on loans originated after February 2017. The total number of microfinance loan accounts stood at 10.11 crore in Q3 FY 2019-20 as compared to 8.67 crore accounts in Q3 FY 2018-19.
Banks hold the largest share of portfolio in micro-credit with total loan outstanding of Rs. 83,876 crore of the total micro-credit universe mainly due to merger of BFIL with Induslnd Bank during Q1 2019-20. Non-Banking Financial Company - Microfinance Institutions (NBFC-MFIs) are the second largest provider of micro-credit with a loan amount outstanding of Rs 66,159 crore. Small Finance Banks (SFBs) have a total loan amount outstanding of Rs 37,282 crore,
In terms of regional distribution of portfolio (GLP), East and North East accounts for 40%, South 28%, North 10%, West 14% and Central 8%. The Top 10 states (based on universe data) constitute 82.5% in terms of GLP. Tamil Nadu continues to hold the largest share followed by West Bengal and Bihar.
With respect to NBFC-MFIs members of MFIN, as of December 31, 2019, 3.1 crore clients have loan outstanding from NBFC-MFIs, which is an increase of 31% over Q3 FY 2018-19. The aggregate loan portfolio (GLP) of these members stands at Rs 67,320 crore as on December 31, 2019. This represents a YoY growth of 44% as compared to December 31, 2018 and 6% in comparison to September 30, 2019. Further, loan amount of Rs 19,275 crore was disbursed in Q3 FY 2019-20 through 0.67 crore accounts.
During Q3 FY 2019-20, NBFC-MFIs received a total of Rs 10,960 crore in debt funding, an increase of 16% from Q2 FY 2019-20. Total equity grew by 8% during the same period and is at Rs 15,567 crore.
As on December 31, 2019, NBFC-MFIs on aggregated basis have a network of 13,844 branches and employee base of 1,12,616. Average loan outstanding per account as of December 31, 2019 is Rs 18,162 which is 10% higher as compared to December 31, 2018. As of December 31, 2018, the average loan outstanding per account was Rs 16,536.
Based on Q3 FY 2019-20 data available for 48 NBFC MFI members, loan amount disbursed via cashless mode is 90% and 80% MFI members have reported more than 90% through 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. The borrowings of MFIs are of longer term while assets are of shorter-term and as a result, they have a comfortable gap as on December 30, 2019 to manage their obligations for the upcoming quarter and up to the next 12 months.