The aggregate gross loan portfolio (GLP) of microfinance institutions (MFIs) grew 84% to Rs53,233 crore during the last quarter of FY15-16. At the same time number of MFI clients increased 44% to 3.25 crore during the same period says a report.
In its 17th edition of Micrometer, a quarterly report, the Microfinance Institutions Network (MFIN) says, "South India leads the way with 35% share in GLP followed by North and West which stand at 25% and East contributing 15%."
"It is interesting to note that growth has been both in the Gross Loan Portfolio as well as in the number of clients. There has been a growth of 44% over the previous financial year. Over the previous year, MFIs have been bringing down their rates of interest and today, one of the largest MFIs, SKS Microfinance is offering products at sub 20%. The industry is maturing and the growth is an indicator of this," says Ratna Vishwanathan, Chief Executive Officer, MFIN.
MFIN is the self-regulatory organisation (SRO) of the Reserve Bank of India (RBI) regulated non-banking finance companies (NBFCs) MFIs. Its quarterly report contains data of 56 NBFC-MFIs.
"Growth of 36% in total number of loans disbursed by MFIs in FY 15-16 when compared to FY14-15 shows the rapid pace of expansion of the industry. Average loan amount disbursed for each beneficiary has also witnessed a growth in FY15-16 and stands at Rs17,805 as compared to Rs14,731 in FY14-15," the report says.
With branch network of 9,669 and employee base of 87,402, MFIs now cover 30 states and Union Territories. As per the report, productivity ratios for MFIs continued to move upwards. Average GLP per branch is now at Rs5.5 crore, up by 51% over FY14-15 and average GLP per loan officer stands at Rs98 lakh, 33% more from the last year.
The current issue of Micrometer does not include data of Bandhan Bank which converted into a bank in Aug 2015.