Microfinance Industry Network (MFIN), a RBI-recognised self-regulatory industry association for Microfinance, introduces the 3rd edition of Micro Matters: Macro View – India Microfinance Review FY 2022-23. The CEO and Director of MFIN, Dr. Alok Misra, presented the report’s main findings on microfinance and financial inclusion. After that, Amitabh Kant, a G20 India Sherpa, unveiled the report in the kind presence of Sivasubramanian Ramann, CMD-SIDBI.
This report is the third iteration of Micro Matters: Macro View, which was created in 2021 to give readers a comprehensive understanding of the industry. It is predicated on MFIN’s profound knowledge of the industry, which it has acquired via contacts with regulators, legislators, business leaders, investors, and analysts. Along with microfinance, this year’s report also discusses the macroeconomic environment and wider advancements made in the area of financial inclusion. The research emphasises that India may maintain its position and expand by 7 per cent in 22–23 in spite of global challenges.
By March 23, the percentage of microloans under MSME credit extended by Scheduled Commercial Banks had increased to 17.9 per cent, insurance penetration was 4.2 per cent of GDP, and bank account ownership was gender neutral. With 87 lakh new women clients added between 22 and 23, the microfinance sector (NBFC-MFIs, Banks, SFBs, and NBFC) now serves 6.64 crore low-income women consumers with credit outstanding of 3.48 lakh crore throughout 729 districts. The paper also highlights the sector’s enormous development potential. MFIN estimates that the microfinance potential market size will be Rs 13 lakh crore in FY 23–24. The study also lists major areas of work and concerns for the industry, details future efforts, and details the work done by MFIN in 22–23 to enhance the sector.
Delivering his keynote address, Shri Amitabh Kant, G20 India Sherpa said, “In last few years, India has laid the building blocks of growth in the form of infrastructure -both physical and digital. Now India needs to grow at around 10% for three decades to become a developed country. The building blocks will have multiplier effect only if the credit demand is met as credit will be the driver of India’s next phase of growth. MFIs are presently the most important institutions in the country as they have the ability to penetrate into rural areas, lend to last mile clients and contribute to Inclusive growth. Honourable Prime Minister’s vision is also centred on universality and women led development. Microfinance caters to both Equitable growth and Universality. I congratulate MFIN and its Members on the excellent work being done and wish them luck.”
Sivasubramanian Ramann, Chairman and Managing Director – SIDBI in his special address said, “SIDBI has been a partner in the great journey of microfinance institutions and the sector has grown together and delivered. It is heartening to note that microfinance institutions have recovered post COVID and are showing strong performance. SIDBI has taken key steps to boost credit to micro entrepreneurs need for formalisation by having Udyam Assist Portal and around 1 crore enterprises are already part of it. MFIs with their client base of nearly 7 crores need to onboard them on to the portal. Further, the co-lending scheme of SIDBI combines the power of origination of microfinance with financial resources of SIDBI and MFIs must make use of it. The need of the hour is to address the persisting high share of informal finance and SIDBI is fully behind microfinance initiatives furthering last mile inclusion. We also need to think beyond technology in last mile outreach, where personal connect of MFIs is critical.”