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Loans given by micro-finance institutions (MFIs) saw robust year-on-year growth of 84 per cent in the second quarter of this fiscal (Q2 FY17).
The aggregate of loans outstanding was ₹57,941 crore as against ₹31,551 crore in Q2 FY16, according to industry association Microfinance Institutions Network (MFIN).
Ratna Vishwanathan, Chief Executive Officer, MFIN, said: “It is important to note that numbers for Q2 FY17 show NPAs (non-performing assets) still at under 1 per cent and the loan recovery rate is well above 99 per cent. Post-November 8, the ground situation has undergone a certain change and the impact will be felt in the subsequent quarter.”
Portfolio at risk (PAR) figures remained under 1 per cent for Q2 FY17.
Total number of loans disbursed by MFIs in Q2 FY17 grew 20 per cent y-o-y to 88.48 lakh loans. The average size of the loan also increased 25 per cent y-o-y to ₹21,469 from ₹17,161.
At the end of Q2 FY17, MFIs reported 3.3 crore clients with 3.9 crore loan accounts — an increase of 54 per cent in clients and 60 per cent in loan accounts. However, the client numbers are not unique and do not factor overlaps.
Over half (55 per cent) of the total disbursements during the quarter came from five States — Karnataka, Tamil Nadu, Maharashtra, Uttar Pradesh and Bihar.
With this, MFIs now cover 30 States and Union Territories. Distributed regionally, the South accounted for 31 per cent of the loans disbursed, the North 28 per cent, the West 25 per cent, and the East 16 per cent.
The MFI industry had 9,853 branches, and 99,010 employees, including 60,288 loan officers, providing doorstep credit.
MFIs indirectly provide life insurance cover to over 4.3 crore clients with total sum insured of over ₹1 lakh crore, besides indirectly facilitating over 23 lakh pension accounts.
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