Structural Interventions

Microfinance Pulse

Small Industries Development Bank of India (SIDBI) and Equifax, collaborated to launch a first-of its-kind newsletter “Microfinance Pulse” to track the trends in the microfinance sector viz. disbursements delinquencies, state-wise distribution, top loan categories etc.

This data will act as a lighthouse helping the microfinance industry and policymakers navigate through crests and troughs of lending cycle, so as to ultimately facilitate responsible lending.

Key highlights of the 8th edition:

8th edition of Microfinance Pulse is providing an overview of the microfinance industry as on 31st December, 2020. Microfinance Pulse covers industry trends in microfinance lenders and gives future prospects apart from being a repository of trends in the Microfinance sector in the recent past.
Microfinance industry has reached 6 crores of live borrowers base at the end of the calendar year of 2020. Book size of microfinance industry as on 31st December is `228,818 crore. Portfolio outstanding grew by 16% from December 2019 to December 2020. Banks are leading by contributing 42% towards total portfolio outstanding and 39% towards active loans.
Loan disbursal increased sharply in OND'20, with Banks disbursing loans higher than pre-COVID levels. Disbursement by amount grew by 84% and number of loans disbursed grew by 97% in OND'20 as compared to previous quarter. 0K-10K ticket size loans have registered highest Y-o-Y growth of 240% from OND’19 to OND’20. Average ticket size witnessed Y-o-Y negative growth of 5% from OND’19 to OND’20. Industry 1+ delinquencies show a peak in December 2020 at 20.68%. Except Banks all other sectors have maintained 90+ delinquency very well in 60K Plus ticket size bucket.
Top 5 states contribute 55% to pan India portfolio. West Bengal is contributing highest at 15% towards portfolio outstanding. As on December 2020 Tamil Nadu has the lowest 90+ delinquency at 2.36% amongst top 5 states. 90+ delinquency of West Bengal is the highest as on December 2020 at 8.97%, among top 5 states. Total portfolio outstanding in Aspirational Districts stood at `28,256 crore, as of December 2020, with 42% share of Banks, followed by 36% share of NBFC-MFI. NBFC-MFIs have the highest 90+ delinquency across Aspirational Districts.
As on 31st December 2020 Maharashtra contributes 7% to pan India MFI Portfolio in terms of active loans and portfolio outstanding. Maharashtra has registered Y-o-Y growth of 17% from December 2019 to December 2020. ATS of NBFCs is highest in Maharashtra compared to other lenders. 90+ delinquency of Maharashtra is higher compared to Pan India delinquency. On Y-o-Y basis, the number of disbursements declined by 11.5% in Maharashtra as compared to 3% Y-o-Y growth on pan India level.
Assam witnessed a negative growth of 5% in terms of portfolio outstanding from December 2019 to December 2020. 90+ delinquencies have increased in all the sectors in Assam December 2020 compared to December 2019. Loan sourcing in Assam grew by 79% from OND’ 19 to OND’ 20.