India’s microfinance industry to grow 25% in FY24: CareEdge

New Delhi, Apr 27 (KNN) In the current financial year the microfinance industry (MFI) of India is expected to continue with around 25 per cent year-on-year (YoY) jump in assets under management (AUM), said CareEdge on Wednesday. 

This will be driven by steady disbursement growth and an improving macroeconomic environment, said the credit rating agency.

Due to the challenges posed by the Covid-19 pandemic the MFI experienced a slowdown in growth.

However, growth rebounded in FY22, with NBFC-MFIs growing at 18 per cent Y-o-Y, supported by strong disbursements in the latter part of the fiscal year, and at 20 per cent in FY23. 

In the second quarter of FY23, NBFC-MFIs disbursements stood at Rs 17,260 crore, growing from Rs 13,181 crore in the fiscal’s first quarter. 

Moreover, the microfinance industry has experienced a shift in market share, with NBFC-MFIs overtaking banks for the first time in four years.  (KNN Bureau)