Micro credit funding up
The Microfinance Institutions Network (MFIN) in its thirteenth issue of the MFIN MicroMeter, providing an overview of the Indian microfinance industry as of March 31, revealed that micro finance institutions (MFIs) provided microcredit to over 30.50 million clients, an increase of 29 per cent over FY 2013-14.
The aggregate gross loan portfolio (GLP) of MFIs stood at Rs 401.38 bn (excluding non-performing portfolio which together accounts for Rs 29 bn). This represents a year-on-year growth of 61 per cent over FY 2013-14. The MicroMeter provides comparative analysis with the previous fiscal years and quarter. The analysis presented in the MicroMeter is based on data collected from 50 MFIN member/associate MFIs, all of whom have either received or applied for NBFC-MFI registration from the RBI.
The annual disbursements in FY 2014-15 increased by 55 per cent compared to FY 2013-14 while the total number of loans disbursed by MFIs grew by 37 per cent in FY 2014-15 compared with FY 2013-14 reaching 33.43 million. Funding to MFIs in FY 2014-15 grew by 84 per cent compared with FY 2013-14.
Portfolio at Risk (PAR) figures remained under 1 per cent during FY 2014-15 while the average loan amount disbursed per account is now `16,327. MFIs now cover 32 states and union territories (489 districts). MFIs' coverage is now geographically well dispersed with GLP in south at 30 per cent, east at 28 per cent, north at 22 per cent and west at 20 per cent. Productivity ratios for MFIs continued to improve.
GLP per branch is now at `38.03 million, up by 49 per cent over FY 2013-14. Insurance (credit life) to over 36.36 million clients with sum insured of `670.50 bn was extended through MFI network. Pension accounts were extended to over 1.87 million clients through the network.
“The results for 2014-15 are a striking testimony to the resurgence of the industry and the extremely large core demand for micro credit. Over the last twelve months the PMJDY’s achievements promoting savings and micro finance industry’s achievements in promoting micro-credit have quite dramatically transformed the financial landscape in the country”, said Alok Prasad, CEO, MFIN.