NBFC-MFIs report 24% year on year growth: MFIN Report

Microfinance

NBFC GrouthNon-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) have reported a growth of 24 per cent during 2016-17 as compared to last financial year.

According to Microfinance Institutions Network (MFIN), the aggregate Gross Loan Portfolio of NBFC-MFIs stood at Rs 38,288 crore in Quarter two (Q2) of Financial Year (FY) 2017-18.

MFIN is the first Self-Regulatory Organisation (SRO) appointed by the Reserve Bank of India (RBI) for NBFC-MFIs and an industry association.

According to the report, NBFC-MFIs disbursed 63.1 lakh loans in Q2 FY 2017-18. This is a 2 per cent increase as compared to 15 per cent loan disbursement reported in the corresponding period during last year.

MFIN further revealed that the Portfolio at Risk (PAR), which was adversely impacted by demonetisation earlier this year, is gradually reducing

In line with this gradual decrease, PAR>30 came down to 5.41 per cent in Q2FY 2017-18 from 9.78 per cent in Q1 FY 2017-18. Similarly, PAR>90 stood at 5.19 per cent in Q2FY 2017-18 as compared to 7.08 per cent in Q1FY 2017-18.

 “We are witnessing a growth in loan disbursements as compared to last quarters which reflects that the industry is now returning to normal. It is also important to note that NBFC-MFIs are now increasingly integrating digital modes for disbursements and collections which will help them mitigate logistical issues related to cash handling to some extent. With decreasing percentage of Portfolio at Risk and improvement in disbursements, we expect the industry to show better growth figures in the coming months,” said Ratna Vishwanathan, CEO, MFIN.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.