Microfinance Loan Portfolio Grows Around INR 3.5 Lakh Crore By March End The report added that quarter-on-quarter, the GLP grew by 8.6% from INR 3.20 lakh crore as of the December quarter in the last fiscal, with the growth in volume and value of loans disbursed
By Teena Jose
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Microfinance Institutions Network (MFIN), the microfinance industry association and an RBI recognized self-regulatory organization, today released the 45th issue of its Micrometer report for the financial year ending March 31, 2023. The report stated that gross loan portfolio (GLP) of the microfinance industry increased by 22 per cent to INR 3.48 lakh crore as of March 31, 2023 from INR 2.85 lakh crore as of March 31, 2022.
It also added that Quarter-on-quarter, the GLP grew by 8.6% from INR 3.20 lakh crore as of the December quarter in the last fiscal, with the growth in volume and value of loans disbursed.
"Microfinance industry reached INR 3,48,339 Cr at the end of FY 22-23 with a YoY growth of 22.0%. During FY 22-23 NBFC-MFIs emerged as the largest provider of Microfinance in India with their share increasing to 39.7% at the end of FY 22-23 from 35.2%. Share of East and North East fell continuously over the last FY, reaching 34.9% from 37.7% as on March 31, 2022. March 31, 2023 marks the completion of the first year of the Regulatory Framework for Microfinance loans, 2022 - issued by RBI. This was a significant change, and the industry has reacted positively, as evidenced by the increase in portfolio size and quality," said Devesh Sachdev, chairperson, MFIN.
The report further revealed that, 7.17 crore loans involving INR 2.96 lakh crore were disbursed during FY23 as against 6.30 crore loans amounting to INR 2.39 lakh crore disbursed in FY22, indicating higher ticket size of new loans. The average loan size had increased to INR 43,607 during the March quarter in FY23 from INR 39,990 during the year-ago quarter.
The AUM of NBFC-MFIs stood at INR 1,31,163 crore, marking a 38.7% YoY rise. The AUM includes an owned portfolio of INR 1,07,232 crore and a managed portfolio of INR 23,931 crore. NBFC-MFIs operate through a network of 18,739 branches and employ 1,61,010 individuals. In FY 22-23, INR 1,30,563 crore were disbursed through 3.1 crore accounts, with an average loan amount of INR 42,010. NBFC-MFIs received INR 74,787 crores in debt funding, representing a 59.2% increase from the previous year. The total equity of NBFC-MFIs grew by 25.4% YoY, amounting to INR 26,332 crore, added the report.
