Mumbai: The country's microfinance sector witnessed an over 50 per cent jump in the total loan-book at the end of December quarter to Rs 314.5 billion as the non-bank lenders expanded their reach to 28.7 million borrowers, an industry body said today.
There was a 23 per cent increase in the number of clients served by the sector to 28.7 million in 32 states and union territories, the Microfinance Institutions Network (MFIN) said in its quarterly report.
The aggregate gross loan portfolio (GLP) of micro- finance institutions (MFIs) stood at Rs 314.5 billion, a rise of 51 per cent over the same period last year, it said.
"What we are witnessing is the sustained revival of the microfinance industry - which augurs well for the national financial inclusion agenda. Given the current trend lines, I am confident the industry will grow by over 40 per cent in GLP terms this fiscal," MFIN Chief executive Alok Prasad said.
The disbursements by MFIs were up 46 percent over the same period a year ago, while the number of loans grew 33 per cent. The average loan amount disbursed per account stood at Rs 16,194 as at the end of the quarter under review, it said.
The top 10 MFIs control 80 percent of the market, led by Bandhan, which saw 59 percent surge in disbursements, followed by SKS Microfinance, whose disbursals grew 10 percent.
Among the states, West Bengal and Tamil Nadu are at the forefront, both in terms of the number of clients and branches, it said.
During the quarter, there was a 162 per cent jump in the debt funding received by MFIs, at Rs 90.7 billion. Of this, 77 percent came from banks and the rest from other financial institutions, the report said.
Securitisation by the microlenders also doubled during the October-December period.
As of December 31, 2014, the MFIs had sold insurance policies to 30.3 million clients with the total sum insured at 592.5 billion, while pension accounts were extended to 1.6 million clients, the report said.
