MFIs' gross loan portfolio up 1.86% to Rs 2,32,126 cr in Q3 FY 2022: Sa Dhan

AgenciesUpdated: Monday, March 14, 2022, 08:50 PM IST
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Total disbursement in the quarter rose 8.5 per cent to Rs 66,864 crore compared to Rs 61,625 crore in the same period of the previous fiscal. / Representative image |

Microfinance industry's gross loan portfolio (GLP) grew 1.86 per cent year-on-year to Rs 2,32,126 crore in the quarter ended December 2021 as against Rs 2,27,893 crore in the same period of the previous fiscal, according to a report by Sa-Dhan.

Sa-Dhan is an RBI-recognised self-regulatory organisation for microfinance institutions (MFIs).

Total disbursement in the quarter rose 8.5 per cent to Rs 66,864 crore compared to Rs 61,625 crore in the same period of the previous fiscal.

Average ticket size in the December 2021 quarter stood at Rs 39,507.

Banks remained the largest disbursement channel. During Q3 of fiscal 2021-22, banks held market share of GLP at 40.50 per cent with average ticket size of Rs 41,805, the report said.

Speaking on the numbers, Sa-Dhan's Executive Director P Satish said, ''The microfinance sector is showing signs of positive recovery. The third quarter of the current fiscal has recorded a healthy improvement in disbursement, and collection efficiency.''

As of December 31, 2021, Portfolio at Risk (PAR) 30+ (those overdue 30 days or more) stood at 8.77 per cent and PAR 90+ at 9.60 per cent.

PAR is used to measure credit delinquencies.

Satish further said funds flow to the sector has improved but some small MFIs have faced challenges in accessing funds from banks.

With current collection rates hovering around 95-98 per cent in most geographies, the sector is expected to revert to pre-COVID-19 growth levels by the end of next fiscal, he said.

(With inputs from PTI)

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