The lenders and investors continue to show full confidence on the sector as evident by the debt funding going up 10.4 per cent as compared to the previous quarter and equity moving up 16.6 per cent compared to corresponding quarter last year.
Photo Credit : PTI
Microfinance Institutions Network (MFIN), the microfinance industry association and an RBI recognized self-regulatory organization, today released the 36th issue of its Micrometer report for October to December 2020 i.e. Q3 FY 2020-21 quarter.
Speaking on the occasion, Dr Alok Misra - CEO & Director, MFIN said, “It is heartening that the green shoots seen at the end of Q2 have proved to be true and sector disbursements are reaching almost at pre COVID levels backed by increased demand for loans to restart livelihoods. The disbursements during Q3 20-21 are around 96% of Q3 19-20 indicating that it should reach normal levels by end of Q4 20-21. The lenders and investors continue to show full confidence on the sector as evident by the debt funding going up 10.4 per cent as compared to the previous quarter and equity moving up 16.6 per cent compared to corresponding quarter last year. The portfolio quality despite geographical variation is also moving in 88-92% range, the best in financial sector. All this has been done following COVID protocols down to field level and increased use of technology.”
Dr Misra also added, “It is important to note that despite the humongous challenge, when most industries were pruning jobs, MFIs have been strengthening their head count at every level. I feel that the recent statement by the RBI Governor that regulatory framework for microfinance for all lenders active in this space would be reviewed and a discussion paper will be place for public comments by Mid March, adds to the positivity for future sustainable growth of last mile financial inclusion. It is noteworthy that MFIN has been strongly advocating this for last few years and has also worked on Code of Responsible Lending covering all lenders.”