The aggregate gross loan portfolio of microfinance institutions (MFIs) rose 29 per cent to Rs 23,998 crore in the third quarter ended on December 31, 2013 against the same period a year ago, according to data compiled by industry body Microfinance Institutions Network (MFIN).
According to the data released by MFIN in the eight issue of MicroMeter on the status of the Indian microfinance industry, over 85 per cent of MFIs witnessed positive growth in the quarter over the corresponding quarter in the previous fiscal.
While loan disbursals of MFIs grew 52 per cent against the same period a year ago, total outstanding borrowing increased 44 per cent on a year-on-year basis to Rs 18,425 crore. During the quarter, the industry received funding of Rs 3,448 crore, of which Rs 2,820 crore was from banks and remaining from other financial institutions.
“The growth trajectory that the microfinance industry is exhibiting after having gone through a severe crisis is exceptional. This, more than anything else, demonstrates the customer connectedness and robustness of the business model of NBFC-MFIs. These institutions play a very important role in meeting the financial needs of the BoP segment and we endorse the RBI-CCFS Committee’s view on removal of all policy biases against them,” Alok Prasad, CEO, MFIN, said.
The analysis was based on data compiled from 43 non-banking finance companies, which are members of MFIN and constitute around 85 per cent of the microfinance business in the country (excluding SHGs).
The top four states that accounted for 62 per cent of the portfolio were West Bengal, Karnataka, Maharashtra and Andhra Pradesh.
However the performing portfolio in AP is negligible. For the first time, the number of clients in Tamil Nadu and West Bengal has superseded those in AP.
Moreover, the report provided data on insurance and pension services by NBFC-MFIs. As on December 31, 2013, MFIs offered life insurance to over 25 million clients with total value of sum insured at Rs 38,400 crore. MFIs have opened more than 1 million pension accounts, 27 per cent of them in government sponsored Swavalamban scheme.
(Edited by Joby Puthuparampil Johnson)