Microfinance industry witnesses 10% rise in gross loan portfolio at Rs 2.56 trillion in Q3FY22

New Delhi, Mar 30 (KNN) The country’s overall microfinance industry witnessed around 10% year-on-year rise in its total gross loan portfolio (GLP) to Rs 2.56 trillion for the third quarter this fiscal from Rs 2.32 trillion for the same period last fiscal, industry body Microfinance Institutions Network (MFIN) said in a release.

MFIN, the microfinance industry association and an RBI recognised self-regulatory organization, has released the 40th issue of its Micrometer report for October to December, 2021. 

Speaking on the issue of Micrometer for FY22, Alok Misra, CEO & director, MFIN said, Q3 FY21-22 saw continuation of growth momentum of microfinance operations which were impacted due to the second wave of Covid in the early part of this financial year. 

Portfolio quality continued to improve, and the portfolio growth is showing promising signs as well. Historically, the fourth quarter brings the highest growth in the sector and therefore Q4 FY21-22 should show further consolidation in the industry, He added.

NBFC-MFIs are the second largest provider of micro-credit with a loan amount outstanding of Rs 87,444 crore, accounting for 34.2% of the total industry portfolio. Small finance banks (SFBs) have a total loan amount outstanding of Rs 42,847 crore with a total share of 16.7%. NBFCs account for another 7.6% and other MFIs account for 1.1% of the universe,” as per Microfinance Institutions Network (MFIN).

According to Misra, the announcement of the ‘Regulatory Framework for Microfinance Loans, 2022’ by the Reserve Bank of India (RBI) came at a very opportune time when the industry seemingly navigated the stressful Covid period well and started showing signs of normalcy. (KNN Bureau)