Outstanding microfinance loans grew 2% July-September: Equifax-Sidbi report
Premium- The outstanding portfolio of the microfinance industry was ₹2.26 trillion as of September
Mumbai: The outstanding portfolio of the microfinance industry has registered a sequential growth of 2% as of September 2021, according to Microfinance Pulse, a quarterly publication by Small Industries Development Bank of India (Sidbi) and Equifax India.
The outstanding portfolio of the microfinance industry was ₹2.26 trillion as of September. The report said that the microfinance industry disbursed loans worth ₹66,681 crore during July-September quarter, registering a year-on-year (y-o-y) growth of 96% by value and 94% by volume.
It added that over 90 days past due delinquency decreased to 2.95% in September from 3.01% in June 2021. Tamil Nadu, West Bengal, Bihar, Karnataka and Uttar Pradesh were the top five states in terms of portfolio outstanding, it said.
Sivasubramanian Ramann, chairman and managing director, Sidbi said that microfinance has evolved as an important financial delivery mechanism to promote financial inclusion.
“Due to the hardship and loss of livelihoods caused by the pandemic, the sector needs a renewed focus of all the stakeholders. The declining delinquency trends in the sector in September 2021 quarter is also encouraging for the future growth prospective," said Ramann.
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KM Nanaiah, managing director, Equifax Credit Information Services Pvt. Ltd. and country leader, Equifax India and MEA said that the faster recovery in microfinance disbursements after the second wave of covid-19 clearly demonstrates the resilience of the industry in the country.
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