Money & Banking

Micro-finance sector’s total gross loan portfolio grew by 9%: Report

PTI New Delhi | Updated on December 31, 2018 Published on December 31, 2018

Growth indicates a ‘resurgence of the micro-finance industry’.

The total gross loan portfolio of micro-finance industry is estimated to have grown by 9 per cent to Rs 63,081 crore for the September quarter this fiscal from the previous quarter, a report said.

Sa-Dhan, an association of micro-finance institutions, in its report said Karnataka, Bihar, West Bengal, Uttar Pradesh and Odisha were the top five states in terms of loan portfolio share.

“The total gross loan portfolio stands at Rs 63,081 crore — an increase of 9 per cent from the previous quarter... NBFC-MFIs have the largest market share (35.63 per cent), followed by banks (30.47 per cent), small finance banks (20.44 per cent) and others (13.46 per cent) in Q2,” it said.

As of September 2018, total client outreach of the sector was 299 lakhs, a growth of 8 per cent from previous quarter, and the overall non-performing assets (NPA) of the sector is at 0.63 per cent, the report pointed out.

“As of now, we are witnessing the resurgence of the micro-finance industry. Q2 results of FY2018-19, has been commendable for the sector. We are confident that this growth will continue till the financial year closure,” Sa-Dhan Executive Director P Satish said. He, however, cautioned that the overall impact of the recent Supreme Court ruling that bars private companies from seeking Aadhaar data, will be visible by end of the December quarter.

In September, the apex court had ruled that private entities could not demand from citizens the 12-digit unique ID number.

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Published on December 31, 2018
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