Microfinance industry shows faster recovery post-second wave: Study
Tamil Nadu, West Bengal, Bihar, Karnataka, and Uttar Pradesh were the top five states in terms of portfolio outstanding as of September 2021/Representative image |
The outstanding portfolio of the Microfinance Industry has registered Q-o-Q growth of 2 percent as of September 2021 at Rs 2,26,000 crore. Microfinance industry disbursed loans worth Rs 66,681 crore during July-Sept 2021 quarter registering a robust Y-o-Y growth of 96 percent by value and 94 percent by volume from the corresponding quarter during July-September 2020.
This was revealed at the eleventh edition of "Microfinance Pulse", a quarterly publication by Small Industries Development Bank of India (SIDBI) and Equifax India.
The 90+ days past due delinquency also decreased to 2.95 in September 2021 from 3.01 percent in June 2021. Tamil Nadu, West Bengal, Bihar, Karnataka, and Uttar Pradesh were the top five states in terms of portfolio outstanding as of September 2021. Tamil Nadu is the leading state with a portfolio outstanding of Rs 29,000 crore. Banks lead the industry with the highest portfolio outstanding of Rs 92,000 crore followed by NBFC-MFIs with portfolio outstanding of Rs 80,000 crores.
Sivasubramanian Ramann, Chairman and Managing Director, SIDBI said, "Microfinance has evolved as an important financial delivery mechanism to promote financial inclusion. Due to the hardship and loss of livelihoods caused by the pandemic, the sector needs a renewed focus of all the stakeholders. The declining delinquency trends in the sector in September 2021 quarter is also encouraging for the future growth prospective."
KM Nanaiah, Managing Director, Equifax Credit Information services Pvt. Ltd. and Country Leader, Equifax India and MEA said, "The faster recovery in microfinance disbursements after the second wave of COVID impact clearly demonstrates the resilience of the industry in the country."
Microfinance Pulse aims to provide insights on trends in the Indian Microfinance industry – from disbursements to delinquencies to top growing states and top loan categories. The report is being published in 12 vernacular languages in addition to Hindi and English.
(With PTI inputs)
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