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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 12th edition:

Portfolio outstanding as on 31st December is `2,36,178 crore against 9.6 crores active loans. Loans worth `66,849 crore were disbursed in OND’ 21. Average ticket size of the NBFCs is highest, it is higher than the industry ticket size. Industry POS witnessed annual growth of 3% from December 2020 to December 2021 and Q-o-Q growth of 4% from September 2021 to December 2021. Banks contribute highest towards portfolio outstanding followed by NBFC-MFIs.

Disbursement amount grew by 7% from OND’ 20 to OND’ 21. Highest loan disbursal is done by the Banks followed by NBFC-MFIs across all the quarters. 30k and above ticket size category witnessed positive Y-o-Y growth. More than 55% of loans are disbursed under 20k to 50k ticket size category. Average ticket size grew by 23% from OND’ 20 to OND’ 21.

1-179 days past due delinquency has declined in December 2021 to 13.80% from 18.77% in September 2021. 60-179 days past due delinquency has increased from September 2021 in December 2021.

As on 31st December 2021, top 10 states contribute 82% towards portfolio outstanding. Tamil Nadu is leading the MFI Industry with portfolio outstanding `30,562 crore. As on 31st December 2021, Tamil Nadu, Bihar, West Bengal, Karnataka and Uttar Pradesh are top 5 states by POS. 90+ delinquency of West Bengal is higher than the industry delinquency.

In this edition Rajasthan is covered as comprehensive state profile. Portfolio outstanding of Rajasthan as on 31st December 2021 is `10,812 crore. Loans worth `2,903 crore were disbursed in Rajasthan during OND’ 21.

Average ticket size of NBFCs is highest across all the lenders. 90+ delinquency of Not for Profit is the lowest amongst all the lenders in Rajasthan. Except AMJ’ 21 more than 60% of loans were disbursed in 20k-50k ticket size category. Rajasthan POS witnessed Y-o-Y growth of 15% from December 2020 to December 2021. Overall 90+ delinquency of Rajasthan has increased in December 2021 from September 2021.

In 12th edition of MFI Pulse Report we have covered customer level analysis as on 31st December 2021. More than 70% of the customers have only 1 outstanding loan. Not for Profit MFIs have the highest customers with 2 outstanding loans.