MFIs' Gross Loan Portfolio grows 30% to Rs 22,138 crore in Q2

HYDERABAD: Microfinance Institutions Network (MFIN), an apex body of MFIs in the country, said the aggregate Gross Loan Portfolio (GLP) of the sector in the second quarter ended September 30 grew by 30 per cent to Rs 22,138 crore against Rs 17,032 crore in the year-ago period.

The GLP growth (other than CDR MFIs) during the period was 54 per cent, with over 90 per cent companies showing positive year-on-year growth over Q2 FY'12-13, said MFIN in the seventh issue of the MicroMeter, which provides an overview of the Indian micro-finance industry.

The total loan disbursals increased by 50 per cent to Rs 7,661 crore during the second quarter of the current fiscal. The same was Rs 5,117 crore during the corresponding period last fiscal.

Funding to the industry during Q2 FY14 grew by close to 300 per cent to Rs 3,780 crore compared with the previous quarter. MFIs have received 86 per cent funding from banks and the rest from other financial institutions.

MFIN CEO Alok Prasad said MFIs are dedicated to bringing affordable financial access to the unbanked and the under- banked. The industry data is showing extremely positive trends. Also, it is heartening to see the high growth rates of MFIs in the hitherto under-penetrated states such as Uttarakhand, Rajasthan, Punjab and Uttar Pradesh (UP).

The analysis presented in this issue is based on data collected from 42 MFIs which, on an aggregated basis, constitute around 85 per cent of the micro-finance business in the country (excluding SHGs), the report said.

West Bengal tops in terms of loans disbursed, followed by Tamil Nadu, Maharashtra, Karnataka, UP and Madhya Pradesh. Top five states (Tamil Nadu, West Bengal, Karnataka, Maharashtra and Uttar Pradesh) account for 60 per cent of the clients.