Microfinance sector grows 24% to Rs 2.93 lakh crore

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Microfinance sector grows 24% to Rs 2.93 lakh crore

The Microfinance sector grew by 24% year-on-year to Rs 2.93 lakh crore with banks retaining its leadership position with 38.4% market share, according to the Microfinance Institutions Network MFIN. Micro loan disbursals increased sharply to Rs 45,830 crore in June compared to Rs 25,503 crore seen in the same period a year ago. The number of loans that were disbursed rose to 1.16 crore against 71 Lakhs in the same period. Through 11.8 crore loan accounts, the sector serves 6 crore unique borrowers. Bandhan Bank and 11 other banks hold the largest share of the micro loan portfolio with a total loan outstanding of Rs 1.13 lakh crore. NBFC-MFIs are the second largest provider of micro-credit with a loan amount of 1.03 crores, accounting for 35% of the total industry portfolio. Small finance banks have a total loan amount of Rs 49,646 crore with a total share of 16.9% while NBFCs account for another 8.8% and other MFIs account for 0.9% of the universe. The industry was still able to record a growth of 23.5% in portfolio and 2.7% over the last quarter, which should see further strengthening in the coming quarters with a supportive operating and regulatory environment, according to MFIN chief executive Alok Misra, who was quoted as saying that most institutions took some time in making policy changes and adapting to the new harmonised guidelines. MFIN is an association of 56 NBFC-MFIs and 41 associates, including banks, small finance banks and NBFCs.