The microfinance industry witnessed a growth of 51% Year-on-Year in the second quarter of this fiscal with total Gross Loan Portfolio (GLP) standing at Rs 1,46,741 crore.
Karnataka, Odisha, Bihar, Tamil Nadu, and Maharashtra are the five top states in terms of GLP, accounting for 52% of the total loan portfolio of the NBFC-MFI (Non-Banking Finance Company-Microfinance Institutions) segment.
NBFC-MFIs have grown by 50% YoY in Q2 FY19 with GLP of Rs 54,018 crore as on September 30, 2018, according to 27th edition of Micrometer report by Microfinance Institutions Network (MFIN).
While the total number of active microfinance accounts for the overall industry were at 7.77 crore in the second quarter with a growth of 27%, NBFC-MFIs witnessed a growth of 32.9% in active loan accounts with 3.43 crore accounts in the same period.
The portfolio quality of the entire microfinance industry has also significantly improved during this period.
Speaking on the performance of the industry, Harsh Shrivastava, CEO, MFIN said, “We have seen a healthy improvement in the quality of the portfolio since last one year which is a very encouraging sign for the industry. The growth for overall industry including NBFC-MFIs has shown a good pace which we expect will be maintained in the coming quarters too."
Taking into account data for only MFIN’s members, the 48 NBFC-MFIs disbursed Rs 21,001 crore of loans to 84 lakh accounts in the second quarter of FY19. In terms of regional distribution of portfolio (GLP), East and North East account for 36% of the total NBFC-MFI portfolio, South 26%, North 15%, West 15%, and Central contributes 8%.
In the microfinance universe, NBFC-MFIs’ share stands at 37%, banks contribute 33%, Small Finance Banks have 17% share, whereas NBFCs’ share is 12% and Non-profit MFIs account for 1%, the report said.