As on December 31, 2022, the microfinance industry served 6.4 crore unique borrowers, through 12.6 crore loan accounts. The overall microfinance industry currently has a total Gross Loan Portfolio (GLP) of Rs 3,20,584 crores.
Microfinance Institutions Network (MFIN), the microfinance industry association and an RBI recognised self-regulatory organisation, has released the 44th issue of its Micrometer report for the financial year ending December 31, 2022 i.e., Q3 FY 22-23 quarter.
Dr Alok Misra, CEO and director, MFIN said, “In Q3 FY 22-23 microfinance industry reached Rs 3,20,584 Cr – a growth of 25.2% on a YoY basis. By end of this quarter, NBFC-MFIs have emerged as the largest provider of microfinance services followed by Banks, who were the largest providers until the last quarter. It is an encouraging sign that all regulated entities have registered healthy growth on a YoY basis during Q3 FY 22-23.”
Further, Bihar has emerged as the state with the largest microfinance portfolio. Increasing outreach of microfinance in states like Bihar and Uttar Pradesh should be seen as an endeavour of REs to provide access to finance in under-reached markets with high potential demand.
The regulatory and policy environment remains conducive and the momentum which the industry has gained over the past one year is favourable. The Udyam Assist Platform of SIDBI will provide further boost to the sector by mainstreaming informal micro-enterprises that are supported & financed by MFIs, Misra said.
Microfinance Universe (based on loans originated after February 2017)
- GLP as on December 31, 2022, showed an increase of 25.2 per cent YoY over Rs 2,56,058 crores as on December 31, 2021.
- 83 NBFC-MFIs are the largest provider of micro-credit with a loan amount outstanding of Rs 1,23,386 Cr, accounting for 38.5% to total industry portfolio.
13 Banks hold the second largest share of portfolio in micro-credit with total loan outstanding of Rs 1,14,546 Cr, which is 35.7% of total microcredit universe. SFBs have a total loan amount outstanding of Rs 52,192 Cr with total share of 16.3%. NBFCs account for another 8.5% and Other MFIs account for 1.0% of the universe.
- The microfinance active loan accounts increased by 18.6% during the past 12 months to 12.6 crores as on December 31, 2022.
- In terms of regional distribution of GLP, East & Northeast and South account for 63% per cent of the total portfolio. Bihar is the largest state in terms of portfolio outstanding followed by Tamil Nadu and West Bengal.
MFIN NBFC-MFIs Members
- GLP of NBFC-MFIs stood at Rs 1,14,969 crores as on December 31, 2022, a 34.9 percent YoY rise as compared to Rs 85,264 crores as on December 31, 2021.
- The GLP includes a owned portfolio of Rs 95,646 crores and managed portfolio of Rs 19,323 crores.
- As on December 31, 2022, NBFC-MFIs, on an aggregated basis, have a network of 18,455 branches with 1,57,737 employees.
- Loan amount of Rs 33,786 crores was disbursed in Q3 FY 22-23 through 79.1 Lakh accounts, as compared to Rs 22,884 crores disbursed in Q3 FY 21-22 through 61.7 Lakh accounts.
- Average loan amount disbursed per account during Q3 FY 22-23 was Rs 42,687 which is an increase of around 15.1% in comparison to the same quarter of last financial year.
- During Q3 FY 22-23, NBFC-MFIs received a total of Rs 15,951 Cr in debt funding, which is 22.5% higher than Q3 FY 21-22.
- Total equity of the NBFC-MFIs grew by 28.6 per cent YoY to Rs 24,897 crores as on 31 December 2022.
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