Microfinance biz hits Rs 4 lakh cr across India

KOLKATA: Micro-finance Institutions portfolio has touched almost Rs four lakh crore during the third quarter of the current financial year, according to the self-regulatory organisation Microfinance Industry Network (MFIN) report.

The report said that the industry saw a robust growth of 24.6 per cent over the last financial year, while portfolio delinquency has reached pre-COVID levels indicating improving health of the sector

It said there has been a significant change in the portfolio distribution across regions.

South India has emerged as the largest contributor to the MFI portfolio with a share of 31.06 per cent, followed by east and northeast contributing 31.06 per cent.

Assets under management (AUM) of the MFI-NBFC members of MFIN stood at Rs 1,41,980 crore as on December 2023, a rise of 36 per cent year-on-year over Rs 1,04,361 crore in the similar previous period.

The average loan disbursed per account during the third quarter of the current fiscal stood 8.2 per cent higher at Rs 45,705.

The report said that during the third quarter of the current fiscal, NBFC-MFIS received total debt funding of Rs 21,847 crore, which is higher by 57.3 per cent over the similar previous period.