According to the Microfinance Institutes Network ( FFIN), the microfinance sector grew by 24% to Rs 2.93 crore crore. Banks maintained their market share of 38.4%.
The June quarter saw a sharp increase in microloan disbursals to Rs 45.830 crore, as opposed to the Rs 25,503 crore recorded the previous year. This is almost 80% more than the Rs 25,503 crore that was seen the same time last year. The number of loans granted rose to 11.6million, compared with 7.1 million during the same period.
Through 120 million loan accounts, 60 million borrowers are served by the sector.
Bandhan Bank together with 11 other banks hold the largest part of the microloan portfolio, totaling Rs 1.13 lakh crore. NBFC-MFIs, which account for 35% of total industry portfolio, are the second-largest providers of micro-credit. They have a loan balance of?1.03 million crore.
The total outstanding loan amount of small finance banks is Rs 49,646 crore. This total share of 16.9% includes NBFCs which account for 8.8% and other MFIs which account for 0.9%.
“Most institutions took some effort in making policy changes, adapting to new harmonised guidelines. However, the industry was still capable of recording a growth rate of 23.5% on a year to date and 2.7% over previous quarters, which should see further strengthening,” Alok Misra , chief executive at MFIN, stated in a statement.