Sa-Dhan, the association of microfinance institutions in India, is seeking support from the government to set up an exclusive apex institution to fund smaller microfinance institutions, on the lines of the Palli Karma-Sahayak Foundation (PKSF) in Bangladesh.

Paul Thomas, Managing Director, Esaf Small Finance Bank, who was elected co-chair of Sa-Dhan, said the association also wants the government to allocate land for a training and research centre in New Delhi to promote financial inclusion.

He said the microfinance sector in the country has posted tremendous growth after two years of pandemic-led disruptions, including improvements in customer repayments. The collective outstanding loan of all members is to the tune of ₹3.5 lakh crore, with a CAGR of 25 per cent.

Microfinance operations are spread across 727 districts in 36 States and Union Territories. Bihar, Tamil Nadu, West Bengal, Uttar Pradesh and Karnataka are the top five states in terms of loan portfolio outstanding and loan accounts, accounting for 55 per cent of industry portfolio.

The average ticket size of the sector in Q4 was ₹43,607, compared to ₹41,095 in Q3 and ₹39,971 in Q2. The average ticket size of the same quarter of last year was ₹39,045. States and UTs have an average ticket size of over ₹40,000, with Nagaland leading with ₹56,368, followed by Andaman & Nicobar Islands with ₹51,839.

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The 25th AGM of Sa-Dhan, which was held in Kochi, approved a budget of ₹14.50 crore for FY2022-23, apart from a building fund of ₹10 crore.

HP Singh, CMD of Satin Credit, will continue as chairman of Sa-Dhan. Four more members were elected to the 13-member board.

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