The eleventh edition of Microfinance Pulse, a quarterly publication by Small Industries Development Bank of India (SIDBI) and Equifax India has revealed that the outstanding portfolio of the microfinance industry has registered a Q/Q growth of 2% as of September 2021.
The outstanding portfolio of the microfinance industry was Rs 2.26 trillion as of September 2021. The microfinance industry disbursed loans worth Rs 666.81 billion during the July-September 2021 quarter registering a robust Y/Y growth of 96% by value and 94% by volume from the corresponding quarter during July-September 2020. Moreover, 90+ days past due delinquency also decreased to 2.95% in September 2021 from 3.01% in June 2021.
Top five states
Tamil Nadu, West Bengal, Bihar, Karnataka and Uttar Pradesh were the top five states in terms of portfolio outstanding as of September 2021. Tamil Nadu is the leading state with a portfolio outstanding of Rs 290 billion. Banks led the industry with the highest portfolio outstanding of Rs 920 billion followed by NBFC-MFIs with a portfolio outstanding of Rs 800 billion.
On the launch, Sivasubramanian Ramann, Chairman and Managing Director, SIDBI said, “Microfinance has evolved as an important financial delivery mechanism to promote financial inclusion. Due to the hardship and loss of livelihoods caused by the pandemic, the sector needs a renewed focus of all the stakeholders.”
KM Nanaiah, Managing Director, Equifax Credit Information Services, and Country Leader, Equifax India and MEA said, “The faster recovery in microfinance disbursements after the second wave of Covid clearly demonstrates the resilience of the industry. We believe this eleventh edition of Microfinance Pulse report in collaboration with SIDBI will provide valuable insights on the emerging trends in the microfinance industry.”
