Microfinance industry has clocked about 69% y-o-y growth in its aggregate gross loan portfolio at Rs 42,106 crore in the June quarter on the back of rise in loan ticket size as well as customer base, industry body MFIN said on Wednesday.
According to the latest issue of ‘MicroMeter’, a quarterly report on the Indian microfinance industry, published by Microfinance Institutions Network (MFIN), microfinance institutions provided credit to over 3.11 crore clients as of June 30, 2015, an increase of 24% y-o-y.
“Higher loan ticket size and an increase in customer base have contributed to the growth in gross loan portfolio (glp). A 69% growth in glp is not unusual for the industry. In fact, it had also registered a very good growth rate during last fiscal,” MFIN chief executive officer Ratna Vishwanathan told FE.
The Reserve Bank of India (RBI) in April raised the cap on lending by MFIs to individual borrowers to Rs 1 lakh from Rs 50,000. Lending cap hike was one on the major demands of the microfinance industry.
MFIN said the aggregate gross loan portfolio (glp) of Rs 42,106 crore in the June quarter was excluding non-performing portfolio in Andhra Pradesh which was close to Rs 3,000 crore. The aggregate glp was 10% higher over the March quarter.
MFIs’ coverage was now geographically well dispersed with glp in South at 29%, East at 29%, North at 21% and West at 21%, the industry body said.
The analysis presented in the MicroMeter issue was based on data collected from 52 NBFC–MFIs (MFIs), all of whom had either received or applied for NBFC-MFI registration to the RBI.
Significantly, leading MFI Satin Creditcare Network Limited (SCNL) has recently received permission for listing of its shares on NSE.