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 13th edition:

Portfolio Outstanding of MFI Industry as on 31st March 2022 is ` 262,602 crore with 101 million active loans. In JFM’ 22 MFI Industry disbursed loans worth `85,589 crore. Average ticket size of SFBs & NBFCs is higher than the industry. Portfolio outstanding witnessed 5% Y-o-Y growth from March 2021 to March 2022 and 11% Q-o-Q growth from December 2021 to March 2022. Not for Profit MFIs witnessed highest Y-o-Y growth of 34% from March 2021 to March 2022. Banks & NBFC-MFIs contribute almost 75% towards portfolio outstanding.

Disbursements by value and volume witnessed a decline in their annual growth rates, -7% by value and -10% by volume from JFM’21 to JFM’22. Quarterly disbursements show growth of 24% by value and 21% by volume from OND’21 to JFM’22. Banks and NBFC-MFIs registered the highest growth rate by value and volume from OND’21 to JFM’22. Highest number of loans are issued under the 30k-40k ticket size category. Industry ATS grew annually by 3% from JFM’21 to JFM’22.

1-179 days past due delinquency has declined in March 2022 to 8.19% from 13.80% in December 2021. All the delinquency buckets have decreased in March 2022 from December 2021.

As on 31st March 2022, top 10 states contribute 83% towards portfolio outstanding. Tamil Nadu is leading with portfolio outstanding ` 34,911 crore and contributes 13% towards the total portfolio outstanding. 90+ delinquency of West Bengal is higher than the industry delinquency.

In this edition we have covered the performance of top 10 districts. Disbursement growth for top 10 districts grew by 19% from March 2021 to March 2022. Among top districts, Muzaffarpur showed the highest growth of 53% with an increase in its market share by 3% from March 2021 to March 2022. North 24 Parganas witnessed a decline of 27% in disbursement from March 2021 to March 2022. 90+ delinquency of all the top districts has declined from March 2021 to March 2022.