Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) have reported a 40 per cent surge in terms of equity investments, said a report by Microfinance Institutions Network (MFIN).
This growth led the equity investments touch Rs 9,631 crore in 2017-18.
The report further revealed that the gross loan portfolio (GLP) of NBFC-MFIs also inflated by 50 per cent to surpass Rs 48,000 crore as on March 2018.
Investors’ are showing higher confidence in the NBFCs-MFIs and the rec ently reported figures in terms of equity investments during this fiscal are clearly reflecting this positive trend, said Harsh Shrivastava, Chief Executive, MFIN.
The signs are encouraging for such medium and small microfinance institutions that are planning to expand their reach, he added.
As per the report, NBFC-MFIs cleared off 268 lakh loans for a sum worth Rs 59,629 crore in 2017-18, an increase of 49 per cent over the previous fiscal.
The sector also witnessed a 25 per cent increase in its cliental base to touch 2.53 crore as of March 31, 2018. Average loan offered by the sector is reported at Rs 22,273.
MFIN is an association and self-regulatory organisation focused on microfinance industry in India.
Its current membership is consists of 48 leading NBFCs.