Lenders see 4% drop in microfinance loan portfolio in April-June

NBFC-MFIs witnessed a diminution of astir 5%. Banks held a 44% marketplace stock successful the microfinance conception astatine the extremity of June, followed by NBFC-MFIs, which held a 32% share.

Lenders saw their gross indebtedness portfolio (GLP) successful the microfinance conception autumn 4% twelvemonth connected twelvemonth (YoY) during the 4th ended June arsenic the 2nd question of Covid took a toll connected indebtedness growth. Industry relation Sa-Dhan said contempt the ongoing pandemic, the microfinance assemblage witnessed a disbursement of Rs 25,820 crore by each lenders, though connected a sequential basis, the GLP was down 14%. The combined GLP of microfinance institutions (NBFC-MFIs), banks, tiny concern banks (SFBs), not-for-profit (NFP) MFIs and different NBFCs stood astatine Rs 2.14 lakh crore arsenic connected June 30, down from Rs 2.49 lakh crore arsenic connected March 31, 2021.

P Satish, enforcement director, Sa-Dhan, said though the disbursements during Q1FY22 were higher compared to the corresponding play of FY21, the concern of the assemblage faced large challenges amid lockdowns. “Small MFIs bore the large brunt arsenic entree to funds from banks was restrained. However, I indispensable accidental that we person seen a betterment successful microfinance operations since July,” Satish said.

On a Y-o-Y basis, banks witnessed astir 4% maturation successful GLP, portion SFBs saw a diminution of astir 14% successful GLP. The highest maturation successful presumption of GLP was seen successful the NFP MFI segment, which clocked 15% growth, portion NBFCs recorded a 22% diminution successful their microfinance GLP. NBFC-MFIs witnessed a diminution of astir 5%. Banks held a 44% marketplace stock successful the microfinance conception astatine the extremity of June, followed by NBFC-MFIs, which held a 32% share.

Sa-Dhan said the manufacture mean of the portfolio astatine hazard (PAR), wherever repayments person been overdue for much than 30 days, stood astatine 17.16%. Fourteen states and Union Territories — Lakshadweep, Kerala, Assam, Andaman & Nicobar Islands, Manipur, Meghalaya, Chhattisgarh, Mizoram, Karnataka, West Bengal, Tamil Nadu, Madhya Pradesh, Pondicherry and Nagaland — person a PAR 30+ worth higher than the manufacture average.