Micro-Finance sector grew by 28% till Q2 FY20: CRIF High Mark Report

MicrofinanceThe microfinance sector witnessed a growth of 28 percent year-on-year (Y-o-Y), at the end of Q2 FY 2019-20 and the gross loan portfolio (GLP) of the sector reached at Rs 1962,000 crore and grew by 1.35 percent from the earlier quarter, said the September quarter report on microfinance lending by CRIF High Mark.

The outreach of the sector reached 6 crore live customers, with 10 crore active loans.

As of September 2019, banks have reported the highest market share of the national portfolio, having exceeded NBFC MFIs by more than 2 percent. The average ticket size of microfinance loans reached Rs 325,000 in September 2019, a 12 percent y-o-y growth.

Disbursements that witnessed a fall in the previous quarter, both in terms of value and volume, have inflated by 0.7 percent and 0.2 percent respectively over the previous quarter.

The report revealed that the gross loan portfolio of the microfinance sector has maintained its growth trajectory in Q2 FY 2019-20, however at a slower speed of 1.35 percent quarter-on-quarter (q-o-q) in September 2019, as compared to 6.9 percent in the corresponding period last year.

The sector reported that rural and urban areas observed slow growth in comparison to Q1 FY 2019-20, with rural sector rising at 1.64 percent as against 3.49 percent in the earlier quarter and urban sector at 1.01 percent against 1.75 percent in the previous quarter.

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