Micro-lenders log 44 pc growth in Q1 advances

Tags: News
The gross loan portfolio of the micro-finance sector grew 44 per cent to Rs 26,150 crore in the June quarter.

The loan portfolio stood at 27 per cent in the East, 33 per cent in the South and 20 per cent each in the West and North, according to a report by Microfinance Institutions Network (MFIN), an industry association.

Average loan amount disbursed per account remained under Rs 15,000.

Client coverage grew by 23 per cent with over 2.65 crore low income households across 493 districts getting micro-loans from NBFC-MFIs.

Total loan disbursed showed a growth of 34 per cent compared to the year-ago period.

"With a predominantly women client base of more than 2.65 crore, the MFI industry is well positioned to play a pivotal role in effectively supporting the new government's plans on financial inclusion, including opening first time bank accounts and improving financial literacy," MFIN chief executive Alok Prasad said.

The productivity ratios for MFIs also continued to improve with GLP per branch at Rs 2.6 crore, up 32 per cent over first quarter of last fiscal.

Funding availed by MFIs in the June quarter grew by 154 per cent, reflecting improved investor confidence. About 77 per cent of this funding came from banks and rest from other financial institutions, the report said.

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