Microfinance sector's loan portfolio grows 24% to Rs 2.75 lakh crore in April-June: Report
The portfolio of all lenders stood at Rs 2,62,599 crore as on March 31, 2022, according to the report released by Sa-Dhan, an RBI recognised Self-Regulatory Organisation (SRO) for microfinance institutions
Microfinance industry witnessed a growth of 24 per cent in its loan portfolio at Rs 2,75,750 crore during the April-June quartr as against Rs 2,22,307 crore in the year-ago period, a report said on Wednesday.
The portfolio of all lenders stood at Rs 2,62,599 crore as on March 31, 2022, according to the report released by Sa-Dhan, an RBI recognised Self-Regulatory Organisation (SRO) for microfinance institutions.
Barring banks, the portfolio of all lenders recorded double-digit growth. The microcredit portfolio of banks rose 9.23 per cent to Rs 1,04,762 crore.
NBFCs (Non-Banking Financial Companies) have shown a significant growth of 54.62 per cent at Rs 24,870 crore. NBFC-MFIs, Small Finance Banks (SFBs) and Not-For-Profit MFIs (NFPs) have recorded growth of 35.18 per cent, 27.66 per cent and 20.71 per cent, respectively.
"The sector has overcome the difficulties of the pandemic and is now on track. Although it was busy in implementing the new RBI regulations during Q1, it has clocked a healthy growth," Sa-Dhan's Executive Director and CEO Jiji Mammen said in the report.
Total disbursement of all lenders during April-June stood at Rs 57,842 crore as compared to Rs 27,328 crore during the same quarter of last year.
However, disbursement was down around 35 per cent compared to the previous quarter (Q4 FY22) as lenders were fine-tuning their disbursement policy as per the new regulations, the report said.
The recovery in the sector saw improvement compared to the previous quarter, and it reached almost 99 per cent in some states, it said.
However, there are still certain geographies where collection is below the normal. For example, the collection efficiency in Assam stood at 50-55 per cent.
The overall sectoral NPA (Non-Performing Asset) was around 12 per cent as of the end of June 2022, but it was 9 per cent for NBFC-MFIs.
As of June 30, 2022, Portfolio at Risk (PAR) 30+ (loans due over 30 days) improved to 5.07 per cent from 5.27 per cent in Q4 FY22.
PAR 60+ (due over 60 days) deteriorated to 3.60 per cent from 3.55 per cent in Q4.
Assam, West Bengal, Kerala, Tripura, and Chhattisgarh are among the major states which have PAR 30+ levels higher than the national average of 5.07 per cent, the report said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
07:49 PM IST