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 10th edition:

Microfinance activities gained prominence in the early 1990s and it has witnessedphenomenal growth over past few years. 10th edition of MFI Pulse covers the growth ofmicrofinance industry based on data submission as on 30th June 2021.

The portfolio outstanding of MFI Industry stood at `222,060 crore, as on June 30, 2021,with Banks and NBFC-MFIs contributing more than 75%. Portfolio outstanding decreasedby 11% in June 2021 from March 2021. Not for Profit MFIs witnessed Y-o-Y growth of 11%from June 2020 to June 2021 followed by Banks with the growth of 4%.

Disbursements during AMJ'21 have been impacted due to second wave of the pandemic,however, the impact is not as severe as was in AMJ’20. Microfinance industry disbursedloans worth `25,808 crore with Y-o-Y growth of 300% by value and 209% by volume inAMJ'21 as compared to AMJ’20.

1-179 days past due delinquency has increased in June 2021 to 31.44% from 13.59% inMarch 2021. 30+ and 90+ delinquency of NBFC-MFIs, NBFC and Not for Profit MFIs islower compared to the industry delinquency.

West Bengal, Tamil Nadu, Bihar, Karnataka and Uttar Pradesh are top 5 states as on 30thJune 2021. West Bengal is leading with portfolio outstanding of `31,024 crore and 90+delinquency of West Bengal is 5.15% which is higher than the industry delinquency.

The report covers comprehensive state profile of Odisha. Portfolio outstanding of Odishaas on 30th June 2021 is `13,096 crore. 85% of market share towards portfoliooutstanding is from Banks and NBFC-MFIs. Disbursement amount of Odisha during AMJ’21 is `2,127 crore with the highest contribution from Banks. 30+ and 90+ delinquency inOdisha is lower than the overall industry delinquency.

The report also presents the analysis of borrower distribution by number of loans andportfolio outstanding. 42% of the customers have 3 or more loans. Highest number ofborrowers are covered by Banks and NBFCs. 66% of borrowers are falling under 10K-50Kportfolio outstanding bucket. 15% of the borrowers have portfolio outstanding morethan `50,000.