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Updated on: Wednesday, November 17, 2021, 10:32 PM IST

Madhya Pradesh: Maximum microfinance companies concentrated in 13 districts

State-Level Banking committee has raised concern over uneven distribution of MFIs that has concentrated the portfolio of over Rs 2,800 crore only in 13 districts.
Chief Minister Shivraj Singh Chouhan chairs special SLBC meeting on financial inclusion in Bhopal on Wednesday.   | FP

Chief Minister Shivraj Singh Chouhan chairs special SLBC meeting on financial inclusion in Bhopal on Wednesday. | FP

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BHOPAL: Most of the micro-finance institutions (MFIs) are woking in 13 districts in the state. This has been cited in the report released by State-Level Banking committee.

The committee has raised concern over uneven distribution of MFIs that has concentrated the portfolio of over Rs 2,800 crore only in 13 districts. While seven of them have MFIs between 16 and 20, the rest have institutions more than 20 within.

On the other hand, there are 17 districts, which are low, both on the number of MFIs and in the microfinance portfolio. Four of them have between 1 to 5 institutions while the rest have 5 to 10 institutions for lending money.

There are around 50 microfinance companies operating in Madhya Pradesh covering 50 districts out of 52 districts. And, the gross total portfolio of microfinance institutions in Madhya Pradesh stands at Rs 6,558 crore as on March 2020. In the FY 2019-20, the MFIs have disbursed Rs 6,809 crore in Madhya Pradesh.

The non-banking financial companies have a portfolio of Rs 6,558 crore and have disbursed Rs 5,147 crore in the last financial year. The other microfinance companies with portfolio of Rs 5,054 crore have disbursed Rs 5,002 crore as loans.

The overall microfinance portfolio of Madhya Pradesh stands at Rs 14,936 crore with around 105 lenders serving to 63.52 lakh households with 39.35 lakh borrowers as of March 2020, as per the figures mentioned in the report. The micro lenders include banks, small finance banks and MFIs.

The committee discussed managing the uneven distribution of MFIs despite their requirement in other districts as well.

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Published on: Wednesday, November 17, 2021, 10:32 PM IST
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