The aggregate gross loan portfolio of microfinance institutions (MFIs) grew by 54 per cent in the second quarter ended September 30, 2013, compared with the same period last year.
According to data released by Microfinance Institutions Network (MFIN), , over 90 per cent of the MFIs (other than those under corporate debt restructuring) showed positive growth.
The funding to industry during the quarter increased by 297 per cent sequentially, that is, over the first quarter of this financial year. MFIs received total debt funding of Rs 3,780 crore, of which, 86 per cent came from banks and rest from other financial institutions.
Commenting on the industry performance, Alok Prasad, CEO, MFIN, said: “It is heartening to see the high growth rates of MFIs in the hitherto under-penetrated States such as Uttarakhand, Rajasthan, Punjab and UP. The microfinance industry’s contribution to promoting access to finance and micro-entrepreneurship is clearly very good news for the larger national agenda of inclusive growth.”
The analysis was based on data collected from 42 MFIs which, on an aggregated basis, constitute around 85 per cent of the microfinance business in the country (excluding self-help groups).