Microfinance loan disbursals during FY 21-22 touches to INR 2,39,433 crores
New Delhi, June 15, 2022: Microfinance Institutions Network (MFIN), the microfinance industry association and an RBI recognized self-regulatory organization, today released the 41st issue of its Micrometer report for financial year ending March 31, 2022 i.e., Q4 FY 21-22 quarter.
Speaking on the 41st Issue of Micrometer for FY 21-22, Dr Alok Misra – CEO & Director, MFIN said,
“The microfinance industry has shown good progress during Q4 FY 21-22 building on the momentum created in Q3. The portfolio quality has improved significantly as compared to end of Q1 FY 21-22, when the 2nd wave of COVID had caused widespread stress across all parts of the country.
Some deviation from the past trends were observed during the FY 21-22: (i) Proportion of NBFC-MFI portfolio in universe portfolio increased by 4.1% to 35.2% as on March 31, 2022, though banks continue to be the main contributors (ii) Geographical distribution of portfolio has also witnessed a change with decrease in share of East and Northeast by 3.3% while share of South and North regions have increased by 1.3% each and (iii) Tamil Nadu is now the largest state in terms of portfolio outstanding, followed by Bihar, displacing West Bengal to the third spot.
The announcement of harmonized regulations for microfinance, near normalisation of collection efficiency and recent verdict of Supreme Court clearly stating that NBFC regulation is the sole purview of the RBI are hugely positive trends, which will see good growth in 22-23.”
