The gross loan portfolio of the microfinance industry rose 25% year-on-year (YoY) to Rs 4.3 trillion as on March 31, a report by Micro Finance Industry Network (MFIN) said on Monday. The industry served 78 million unique borrowers through 149 million accounts.
NBFC-MFIs are the largest provider of micro-credit, accounting for 39.4% of the total industry portfolio.
The loan outstanding of NBFC-MFIs stood at Rs 1.7 trillion as on March 31.
Assets under management of NBFC-MFIs rose nearly 30% YoY to Rs 1.6 trillion. AUMs include an off-balance-sheet exposure of Rs 30,641 crore. The average loan amount disbursed per account rose 9.9% to Rs 45,024 in 2023-24.
On an aggregated basis, NBFC-MFIs have a network of 20,348 branches with 1,83,842 employees.
During 2023-24 (April-March), NBFC-MFIs received a total of Rs 89,308 crore in debt funding, which is 29.1% higher compared with 2022-23.
The total equity of NBFC-MFIs rose 39% year-on-year to Rs 34,435 crore as on March 31. “This additional equity will allow entities to leverage and expand their operations in coming years,” Alok Misra, chief executive officer and director, MFIN, said.
Banks hold the second-largest share of portfolio in microcredit, which is 33.2% of total microcredit universe. The total loan outstanding of banks was at Rs 1.4 trillion.
Small finance banks have a market share of 17.1%, while diversified non-banking financial companies hold a 9.3% market share in the microfinance segment.
In terms of regional distribution of gross loan portfolio, the east, northeast and south account for 62% of the total portfolio. Bihar remains the largest state in terms of portfolio outstanding, followed by Tamil Nadu and Uttar Pradesh.