Microfinance Industry up 53% in Q3: MFIN Report
MUMBAI: The microfinance industry has grown by 53% year on year during the third quarter of the financial year despite, according to report by Microfinance Institutions Network, a Self-Regulatory Organisation.
The aggregate gross loan portfolio of microfinance institutions stood at Rs 56,634 crore in Q3 FY17 as compared to Rs 36,912 crore in Q3 FY15-16.
There was a decline of 26% in the number of loans disbursed and a 16% decrease in loan amounts disbursed as compared to the corresponding quarter of the last year.
The decrease on both disbursement and collection is due to the impact on industry post discontinuance of the Rs. 500 and Rs.1000.
Collection of microfinance sector was impacted after the note ban, which is 99% cash driven.
“Post the discontinuation of HCVNs with effect from midnight of 8th November, the industry was thrown out of gear initially,” said Ratna Vishwanathan, CEO, MFIN. “This was to be expected in a sector which is 99% cash intensive and has a unique doorstep delivery model specifically for the unbanked and underbanked.”
During the whole two months post discontinuing of high value notes, MFIN has had to engage with State Governments at both the ministerial level as well as the bureaucracy, the RBI and extensively with the press to quell the surge of disinformation with reference to microfinance practices.
The aggregate gross loan portfolio of microfinance institutions stood at Rs 56,634 crore in Q3 FY17 as compared to Rs 36,912 crore in Q3 FY15-16.
There was a decline of 26% in the number of loans disbursed and a 16% decrease in loan amounts disbursed as compared to the corresponding quarter of the last year.
The decrease on both disbursement and collection is due to the impact on industry post discontinuance of the Rs. 500 and Rs.1000.
Collection of microfinance sector was impacted after the note ban, which is 99% cash driven.
“Post the discontinuation of HCVNs with effect from midnight of 8th November, the industry was thrown out of gear initially,” said Ratna Vishwanathan, CEO, MFIN. “This was to be expected in a sector which is 99% cash intensive and has a unique doorstep delivery model specifically for the unbanked and underbanked.”
During the whole two months post discontinuing of high value notes, MFIN has had to engage with State Governments at both the ministerial level as well as the bureaucracy, the RBI and extensively with the press to quell the surge of disinformation with reference to microfinance practices.
