MFIs' Gross Loan Portfolio Rises 23.5% To Rs 2.93 Lakh Crore As Of June 2022
MFIN's chief executive and director Alok Misra said he expects a further strengthening of the portfolios in the coming quarters.
Microlenders' gross loan portfolio rose by 23.5% to Rs 2.93 lakh crore in the April-June quarter of 2022 compared to the year-ago period, a report said on Thursday.
The GLP grew 2.7% during the June quarter compared to Rs 2.85 lakh crore at the end of the preceding March quarter, the report by industry lobby grouping and RBI-recognised self regulatory organisation Microfinance Institutions Network said.
The body's chief executive and director Alok Misra said he expects a further strengthening of the portfolios in the coming quarters with a supportive operating and regulatory environment.
"After the announcement of harmonized regulations for microfinance in Mar 2022, most institutions took some time in making policy changes and adapting to the new guidelines, but the industry was still able to record a growth of 23.5% in portfolio,” he said, reflecting on the quarter gone by.
Its chairperson Devesh Sachdev said the credit quality of post-Covid disbursements is at 95% plus.
"During the remaining period of FY22-23, riding on robust branch expansion, pent up demand and conducive policy, the sector is poised for sustainable growth,” Sachdev said.
Banks continue to hold the largest share in the GLP but the same has slipped to 38.4% in June from 40% in March, the report said, adding that dedicated NBFC-MFIs are the second largest provider of micro-credit with a 35% share in GLP.
The small finance banks have a 16.9% share in the GLP, while other NBFCs have a 8.8% share, it said.
The GLP of NBFC-MFIs stood at Rs 98,508 crore as on June 30 which is a 30.2% rise as compared to Rs 75,677 crore as on June 30, 2021, it said, adding that it includes an owned portfolio of Rs 84,044 crore and managed portfolio of Rs 14,464 crore.
NBFC-MFIs had a network of 17,600 branches with 1,47,352 employees, the report said.
