Microfinance has evolved as an important financial delivery mechanism, says Ramann of SIDBI
The Microfinance Industry disbursed loans worth R.66,681 crore during July-Sept 2021 quarter registering a robust Y-o-Y growth of 96% by value and 94% by volume from the corresponding quarter during July-September 2020, according to the eleventh edition of “Microfinance Pulse”, a quarterly publication by Small Industries Development Bank of India (SIDBI) and Equifax India.
The outstanding portfolio of the Microfinance Industry has registered Q-o-Q growth of 2% as of Sept. 2021 when it was ~Rs.2,26,000 crore, the report “Microfinance Pulse” said on 14 Feb 2022.
Moreover, 90+ days past due delinquency also decreased to 2.95% in Sept 2021 from 3.01% in June 2021.
Tamil Nadu, West Bengal, Bihar, Karnataka and Uttar Pradesh were the top 5 states in terms of portfolio outstanding as of Sept 2021. Tamil Nadu is the leading state with a portfolio outstanding of ~Rs.29,000 crore.
Banks lead the industry with the highest portfolio outstanding of ~Rs.92,000 crore followed by NBFC-MFIs with a portfolio outstanding of ~Rs.80,000 crores.
“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,” said Sivasubramanian Ramann, Chairman & Managing Director, SIDBI.
“The declining delinquency trends in the sector in Sept 2021 quarter is also encouraging for the future growth prospective,” he said at the report launch.
“The faster recovery in Microfinance disbursements after the second wave of COVID impact clearly demonstrates the resilience of the industry in the country,” added KM Nanaiah, Managing Director, Equifax Credit Information Services Pvt Ltd and Country Leader, Equifax India and MEA.
“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.”
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Since its formation in 1990, SIDBI has been impacting the lives of citizens across various strata of the society through its integrated, innovative and inclusive approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly touched the lives of Micro and Small Enterprises (MSEs) through various credit and developmental engagements. SIDBI 2.0 carries the vision of inclusive, innovative and impact-oriented engagements. fiinews.com
