Microfinance

Microfinance Companies in India register 44% growth in Q1

Microfinance Institutions Network , the industry body of Microfinance Companies in India announced last week that MFI’s registered a growth of 44% on their Gross Loan Portflio to touch Rs 26,150 crore in the first quarter of FY2015 when compared to Q1 of FY2014.

The top states which saw the largest increase in disbursements were West Bengal, Tamil Nadu, Karnataka, Maharashtra and Uttar Pradesh. These states totally accounted for 60% of the disbursements carried out by Microfinance Companies.

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Other Highlights of MFI Operations in India were as follows :

  • As of 30th June 2014, MFIs provided microcredit to over 26.5 mn clients
  • During Q1 fy 14-15, MFIs increased their client base by 23% over Q1 fy 13-14
  • The aggregate gross loan portfolio (glp) of MFIs stood at Rs 261.5 bn (excluding non performing portfolio i.e. PAR > 180 days, n Andhra Pradesh which is close to Rs 28 bn), a growth of 44% over Q1 fy 13-14
  • 80% of the MFIs showed positive yoy growth in glp over Q1 fy 13-14
  • Disbursements (loan amount) in Q1 fy 14-15 increased by 48% compared with Q1 fy 13-14
  • Total number of loans disbursed by MFIs grew by 34% in Q1 fy 14-15 compared with Q1 fy 13-14
  • Funding to MFIs ( in Q1 fy 14-15) grew by 154% compared with Q1 fy 13-14
  • Portfolio at Risk (PAR) figures (PAR 30, 90, 180) remained under 1% for Q1 fy 14-15
  • Average loan amount disbursed per account remained < Rs 15,000
  • MFIs now cover 30 states/union territories and 493 districts.
  • MFIs’ coverage is now geographically well dispersed with glp in east at 27%, south at 33%, west and north at 20%
  • Productivity ratios for MFIs continued to improve. Glp per branch is now at Rs 26 mn, up by 32% over Q1 fy 13-14
  • Insurance (credit life) to over 23.8 mn clients with sum insured of Rs 448.6 bn was extended through MFI network
  • Pension accounts were extended to over 1.5 mn clients through MFI network

To know more about the state of the sector visit : http://mfinindia.org/mfin-publications/

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