During FY 18-19, NBFC-MFIs received a total of Rs357.59 bn in debt funding (from banks and other financial institutions). This represents a growth of 63% compared to FY 17-18. Total equity grew by 42% during the same period and is at Rs142.06 bn. In terms of regional distribution of portfolio (GLP), east and north east accounts for 38% of the total NBFC MFI portfolio, south 24%, north 14%, west 15% and central contributes 9%.
Portfolio outstanding of the microfinance industry (Rs Cr)
The portfolio quality of the industry is good, has remained stable and witnessed an improvement during this period as depicted by PAR >30 of 1.00% as on 31 March 2019 in comparison to 1.39% as on 31 March 2018. The PAR analysis has been done after removing Andhra Pradesh & Telangana legacy portfolio and delinquencies above 180 days to reflect a true picture of the portfolio quality.
According to Harsh Shrivastava, CEO, MFIN, with primary members consisting of 53 NBFC-MFIs along with 38 Associates including banks, small finance banks (SFBs) and NBFCs, “In 2018-19, microfinance in India showed rapid growth, regionally-balanced growth, and resilient growth. Apart from the growth in loan size and loan accounts, the growth of the staff of NBFC-MFIs was also heartening at 34%, now totaling to 1,04,973 people. Eastern India’s growth continues with Bihar and Odisha now ranked 2 and 3 in terms of States. The microfinance industry showed its resilience by growing steadily in spite of liquidity squeeze that all NBFCs faced in Q3 and natural disasters like cyclones and drought. The continuing trust that women borrowers across the nation have in the microfinance model is a matter of pride for all us—and this motivates MFIN to keep promoting responsible finance.”