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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 11th edition:

11th edition of MFI Pulse Report presents the snapshot of the data submitted for the period up to September 2021 and developments in the Microfinance industry during this period.

Book size of MFI Industry as on 30th September 2021 is `2,26,123 crore. Banks, SFBs & NBFC-MFIs contribute more than 90% towards portfolio outstanding and 95% of disbursed amount. Microfinance industry witnessed Q-o-Q growth of 2% from June 2021 to September 2021. NBFC-MFIs witnessed highest Y-o-Y growth of 14% from September 2020 to September 2021 and Q-o-Q growth of 10% from June 2021 to September 2021. Banks portfolio outstanding has declined by 3% from June 2021 to September 2021.

Number of loan disbursed grew by 94% from JAS’ 20 to JAS’ 21 and disbursement amount grew by 96% for the same period. Highest number of loans are disbursed under 30k-40k ticket size category across all the quarters. Average ticket size grew by 1% from JAS’ 20 to JAS’ 21.

All the delinquency buckets have declined in September 2021 from June 2021. 60-89 days past due delinquency bucket has the lowest delinquency across all the quarters except June 2021.

Tamil Nadu is leading with portfolio outstanding `29,335 crore and contributes 13% towards the total portfolio outstanding. As on 30th September 2021 Tamil Nadu, West Bengal, Bihar, Karnataka and Uttar Pradesh are top 5 states. Among top 5 states, 90+ delinquency of only West Bengal is higher than the industry delinquency.

Madhya Pradesh is covered as comprehensive state profile. Portfolio outstanding of Madhya Pradesh as on 30th September 2021 is `13,920 crore. Highest contribution towards portfolio outstanding is from NBFC-MFIs followed by Banks. Loans worth `4,340 crore were disbursed in Madhya Pradesh during JAS’ 21. Average ticket size of NBFCs and Banks is higher compared to the state’s average ticket size. 90+ delinquency of Madhya Pradesh is higher than the delinquency levels of overall Microfinance Industry.

In this edition we have assessed Y-o-Y growth of microfinance industry. Microfinance industry witnessed the slowdown due to the nationwide lockdown from March 2020. Loan sourcing contracted in October 2019 to September 2020 period by 28% and 24% in terms of volume and value respectively from October 2018 to September 2019. However, microfinance industry is back to expansion mode and it grew by 35% and 37% by volume and value respectively during October 2020 to September 2021 period.