Over 70 per cent of NBFC – Microfinance Institutions (MFIs) showed growth in their gross loan portfolio between the first and last quarter of 2012-13.
According to data released by the Microfinance Institutions Network (MFIN), an apex body of MFIs in the country, the gross loan portfolio of MFIs stood at Rs 2,013 crore as on March 31, 2013, registering 17 per cent growth compared to the figure at the close of the first quarter of the same financial year.
The top five States — Andhra Pradesh, West Bengal, Tamil Nadu, Karnataka and Maharashtra — accounted for 60 per cent of clients and 59 per cent of the portfolio of MFIs.
“The GLP growth has been fairly broad-based with 70 per cent of MFIs showing an increase in their gross loan portfolio. A significant increase in lending has been observed in States such as West Bengal, Tamil Nadu, Kerala, Bihar, Assam and Uttar Pradesh,’’ Alok Prasad, Chief Executive Officer, MFIN said in a release.
The data also reflects the growing confidence of investors in the industry. As of June 30, 2013, MFIs received total debt funding of Rs 998 crore, 79 per cent of it from banks and the balance from other financial institutions (FIs).
This was based on data collected from 42 MFIs (40 MFIN members and two non-MFIN members), which on an aggregate basis constitutes around 85 per cent of the microfinance business in the country (excluding SHGs).