The microfinance sector in India exhibited remarkable growth in Q4 FY 2023-24, as highlighted in the Micrometer report released by the Microfinance Institutions Network (MFIN).
The microfinance industry’s loan portfolio saw substantial year-on-year (YoY) growth. NBFC-MFIs reported a 23.6% increase, while banks grew by 20.9%, Small Finance Banks (SFBs) by 28.4%, and other NBFCs by 37.5% . The industry’s total gross loan portfolio (GLP) reached Rs 4,33,697 crore, up from Rs 3,99,442 crore in March 2023.
The number of clients increased by 19.4% to 4.3 crore as of March 2024. AUM grew by 29.5%, totaling Rs 1,56,884 crore. The owned portfolio was Rs 1,26,243 crore, constituting 73.9% of the NBFC-MFI universe portfolio.
FY 2023-24 saw loan disbursements amounting to Rs 1,38,297 crore through 3.1 crore accounts, reflecting a 24.4% increase from the previous fiscal year.
The borrowings outstanding were Rs 1,11,542 crore, with banks contributing 61.4%, followed by 19.9% from non-bank entities. Total equity in the sector surged by 39.0%, reaching Rs 34,435 crore .
The branch network of NBFC-MFIs expanded significantly. The number of branches increased from 17,041 in March 2023 to 20,348 in March 2024, marking a 19.4% growth.
