Microfinance industry grows 84% in 2015-16!
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.
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    COMMENTS

    suneel kumar gupta

    4 years ago

    Here also I see same old phenomenon like nationalized banks. Now industry will grow by giving loans which is easy. When recovery time comes, these will be bad loans and microfinance industry will also be poor performer.

    Meenal Mamdani

    4 years ago

    Recently Thomas Frank, a liberal writer and journalist, wrote in Harper's that microfinance was a big fraud being perpetrated by the wealthy to the detriment of the poor. His point was that apart from the poor being coerced into taking loans, govts shrugged off the responsibility of coming up with programs to alleviate poverty, putting the responsibility on the poor themselves to better their lives.
    He does have a point and some MFI have been guilty of pushing loans hard to show good numbers to their investors.
    However he ignores the enormous good that microfinance does. Most of the MF groups I have encountered give loans to women who would otherwise have no access to funds. Even a small amount of money improves a woman's status, self-esteem and gives her options to face life's problems. Most of the rural groups use micro-finance as just one of the tools to improve the lives of their members. They provide other support such as help with income generation, education, etc.
    There is a huge need for small unsecured loans not only in India but also in rich countries like USA so I am very happy to see the increase in MFI members.

    Ratan Tata invests in medical response startup app company
    Ratan Tata, chairman emeritus of Tata Sons, has made an investment in the US-based medical emergency response start-up app company, MUrgency Inc., founded by a Keralite.
     
    "Tata's involvement is an affirmation of the importance of a reliable emergency medical response network," said company founder Shaffi Mather, who has served briefly as an economic advisor to Kerala Chief Minister Oommen Chandy. 
     
    Ratan Tata wanted MUrgency to launch and grow the network in India first before taking it overseas, Mather said, adding the investment will help attract talent to the company and partnerships beyond India.
     
    MUrgency will use the proceeds of the funding to augment technology and scale up operations besides leveraging Tata's experience and network to develop the emergency response network globally, he said.
     
    The company launched its service in February in the TriCity (Chandigarh-Mohali-Panchkula) area of Punjab and Haryana with a responder network of 36 hospital emergency rooms, over 40 ambulances and over 350 medical professionals.
     
    MUrgency plans to launch its service in Amritsar and Jalandhar by the end of this month and cover entire state of Punjab by June.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Bandhan Bank posts Rs.275 crore profit
    Bandhan Bank reported a net profit of over Rs.275 crore over seven months and seven days of the fiscal 2015-16.
     
    During the period under review, the Kolkata-based bank -- which started operations in August 2015 -- posted a total income of Rs.1,082 crore. Its net interest income (NII) stood at Rs.932.72 crore.
     
    The private lender's gross advances were at Rs.15,493.97 crore, of which only Rs.156 crore was advanced to non-micro credit sectors.
     
    "Despite spending on technology, infrastructure and new employees, the bank has posted a decent profit which is satisfactory and encouraging," said Chandra Shekhar Ghosh, the bank's managing director and chief executive.
     
    The city-based private lender has expanded its operation across 29 states through a network of 670 branches and 234 ATMs. It opened over 15 million accounts, including deposits and advances.
     
    The bank has collected deposits of Rs.12,088.75 crore and caters to over 8 millions deposit customers up to March end.
     
    Its current account and savings account balance stood at Rs.2,605.59 crore -- 21.55% of total deposits.
     
    "We expect to achieve 30% credit and deposit growth by end of the March 2017," he said.
     
    The bank has also opened 21 small format branches, he said.
     
    "The bank has 20,600 employees at present and with the expansion of network of branches and ATMs in the coming months, the employee number will go up accordingly," he said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Ramesh Poapt

    4 years ago

    dearFM, please take a note this vs PSU banks recent performance!'bandhans' are in psu banks and not in Bandhan Bank!!

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