The assets under management of non-banking financial company – microfinance institutions (NBFC-MFIs) rose 39.2% year-on-year to Rupees 1.3 trillion as on September 30, a release from microfinance institutions network (MFIN) showed.
The AUM includes an owned portfolio of Rupees 1.1 trillion, and a managed portfolio of Rupees 24,501 crore. The gross loan portfolio of the overall microfinance industry rose 25% y-o-y to Rupees 3.8 trillion as on September 30.
Alok Misra, chief executive officer and director, MFIN, said the growth momentum of the microfinance industry has continued in Q2 FY 23-24 taking the portfolio to Rupees 3.8 trillion. “The portfolio quality is also near pre-Covid levels with PAR (portfolio at risk) 30 days to 180 days at 2.0%,” Misra said.
NBFC-MFIs disbursed loans worth Rupees 32,732 crore in July-September through 7.9 million accounts. They had disbursed loans worth Rupees 28,029 crore through 6.8 million accounts a year ago.
However, the average loan amount disbursed by NBFC-MFIs fell 0.4% y-o-y to Rupees 41,373 in the September quarter. With an outstanding portfolio of Rupees 1.5 trillion, NBFC-MFIs account for 39.3% of the total microfinance industry. Banks, small finance banks, and diversified non-bank lenders account for 31.6%, 19.4%, and 9.1% of the overall portfolio in the industry. Active loan accounts in the microfinance industry rose 13.9% y-o-y to 139 million as on September 30.
In terms of regional distribution of the gross loan portfolio, east, northeast and south account for 63% of the total portfolio. Bihar is the largest state in terms of portfolio outstanding followed by Tamil Nadu and Uttar Pradesh.