New Delhi: Gross loan portfolio of Non- Banking Finance Company-Microfinance Institutions (NBFC-MFIs) soared 24 percent to Rs 38,288 crore in the end of September quarter year-on-year, said an industry body.
The NBFC-MFIs segment, according to MFIN, is expected to grow further on account improvement in loan disbursements and decrease in risk assets.
The aggregate gross loan portfolio (glp) of MFIs stood at Rs 38,288 crore at September-end, said Microfinance Institutions Network (MFIN), the first RBI appointed Self- Regulatory Organisation (SRO) and an industry association.
"This represents a Y-o-Y growth of 24 percent over Q2 2016-17 and 11 percent over the last quarter," it said.
NBFC-MFIs disbursed 63.1 lakh loans in July-September period of 2017-18 which has increased by 2 percent as compared to the corresponding period during last year.
Commenting on the data, MFIN chief executive Ratna Vishwanathan said the growth in loan disbursements as compared to last quarters reflects that the industry is now returning to normal.
The sector was adversely affected by demonetisation, which had pulled out 86 percent of total currency in circulation.
"It is also important to note that NBFC-MFIs are now increasingly integrating digital modes for disbursements and collections which will help them mitigate logistical issues related to cash handling to some extent," said Vishwanathan.
She further said that with decreasing percentage of portfolio at risk and improvement in disbursements, "we expect the industry to show better growth figures in the coming months".
The loan amount disbursed during the September quarter increased by 18 percent to Rs 13,853 crore as compared to Rs 11,734 crore in the corresponding quarter last fiscal.
"In fact, 54 percent of these disbursements were done in cash-less mode, mostly through direct transfer to the customer bank accounts," the MFIN said, adding average loan amount disbursed per account also witnessed an increase of 15 percent.
