Micro-loans jump 40 pc to Rs 1.8 tn in FY19
| Date :12-Jul-2019 |
THE microfinance industry’s total loan portfolio grew 40 percent to Rs 1,78,587 crore in FY19, with top 10 states accounting for 83 percent of the gross loan portfolio, says a report. In FY18, total loan portfolio of the industry had stood at Rs 1,27,223 crore. “Market share of top 10 states in portfolio outstanding at Rs 1,48,440 crore is 83 percent as of March 2019,” according to a joint report by Equifax and Sidbi. Bengal and Tamil Nadu contributed 34.7 percent of the top 10 states.
Followed by Bihar, and Karnataka are having portfolio of over 15,000 crore, indicating a highly concentrated market. Bihar saw the highest growth at 54 percent in FY19. Sidbi Chairman Mohammad Mustafa said, “Growth in the overall microfinance portfolio is encouraging.” In FY19, fresh loan disbursal stood at Rs 213,074 crore, an increase of 36 percent over FY18. NBFC-MFIs hold the largest share of micro-credit with total loan outstanding of Rs 68,156 crore, accounting for 38 percent of the total industry portfolio.