New Delhi: Microfinance Institutions Network (MFIN), the microfinance industry association and an RBI recognized self-regulatory organization, today released the 37th issue of its Micrometer report for January to March 2021 i.e. Q4 FY 2020-21 quarter.

“The resilience of the MFI Industry has been tested yet again, and the progress shown in Q4 FY 20-21 is a testimony to its ability to bounce back. The industry was able to cover up well for the standstill in operations in the first two quarters of FY 20-21, thereby showing an overall growth in portfolio and first time borrowers during the year.”

Alok Misra
CEO and Director
MFIN

Going forward, RBI’s consultative document on regulation of microfinance would bring a paradigm shift in how microfinance is implemented by restoring parity among various types of lenders. Further, proactive measures by RBI through its resolution framework and pushing liquidity through targeted schemes along with Honorable Finance Minster’s latest announcement on credit guarantee scheme on term loans to MFIs, provides renewed impetus to the sector’s recovery and its contribution towards financial inclusion.”

Performance Overview:

Microfinance Universe based loans originated after February 2017

  • As on March 31, 2021, the microfinance industry served 5.93 crore unique borrowers, through 10.83 crore loan accounts. The overall microfinance industry currently has a total Gross Loan Portfolio (GLP) of INR 2,59,377 crores.
  • This is on the back of healthy addition of 4 lakh unique borrowers during the pandemic-struck 12 months for the period ending March 2021.
  • Gross loan portfolio (GLP) as on March 31, 2021, showed an increase of 11.90 per cent YoY over INR 2,31,787 crores as on March 31, 2020
  • 13 Banks hold the largest share of the portfolio in micro-credit with a total loan outstanding of INR 1,13,271 crores, which is 43.67 per cent of total micro-credit universe. NBFC-MFIs are the second largest provider of micro-credit with a loan amount outstanding of INR 80,549 crores, accounting for 31.05 per cent to total industry portfolio. SFBs have a total loan amount outstanding of INR 41,170 crores with a total share of 15.87 per cent. NBFCs account for another 8.36 per cent, and other MFIs account for 1.05 per cent of the Universe.
  • The microfinance active loan accounts increased by 0.3 crore during the past 12 months to 10.83 crores as on March 31, 2021.
  • In terms of regional distribution of GLP, East & North East and South accounts for 66% per cent of the total portfolio.

MFIN NBFC-MFIs Members

  • GLP of NBFC-MFIs stood at INR 81,475 crores as on March 31, 2021, a 11.0 per cent YoY rise as compared to INR 73,412 crores as on March 31, 2020 and by 9.7 per cent in comparison to INR 74,272 crores as on December 31, 2020
  • The GLP of Rs 81,475 crores includes owned portfolio of INR 68,894 crores and managed portfolio of INR 12,581 crores.
  • As on March 31, 2021, NBFC-MFIs, on an aggregated basis, have a network of 14,673 branches with 1,19,634 employees.
  • Loan amount of INR 57,891 crores was disbursed in FY 20-21 through 1.70 crore accounts, as compared to INR 76,956 crores disbursed in FY 19-20 through 2.78 crore Lakh accounts.
  • Average loan amount disbursed per account during FY 20-21 was Rs 35,726 which is an increase of around 20.0 per cent in comparison to last financial year.
  • NBFC-MFIs received a total of INR 40,797 crores in debt funding during FY 20-21, which is 9.2 per cent higher than FY 19-20.
  • Total equity of the NBFC-MFIs grew by 15.0 per cent to INR 18,663 crores as on 31 March 2021.

Suggested Read: Second wave of infections nips the budding recovery of the NBFC sector; performance expected to revive in H2FY2022: ICRA (indiaunicorn.com)

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