MFI pivotal in delivery of essential financial services, says Ramann
Withstanding Covid-19 impact with tremendous grit, the Micro Finance Industry (MFI) has been an enabler in promoting the financial inclusion agenda and fostering economic and social development in India, said K M Nanaiah, Managing Director, Equifax Credit Information Services Pvt Ltd, a unit of Atlanta-headquartered Equifax (NYSE: EFX).
“Microfinance Industry is pivotal in delivery of essential financial services, particularly credit services, to the unbanked and underbanked small entrepreneurs,” elaborated Sivasubramanian Ramann, Chairman & Managing Director, SIDBI.
“The industry has been at the centre for developing financial discipline amongst rural / semi-urban population, thus furthering the agenda of Financial Inclusion,” he said at the 15th edition of “Microfinance Pulse”, a quarterly publication by Small Industries Development Bank of India (SIDBI) and Equifax India.
“With every edition of the MFI Pulse, in collaboration with Equifax, SIDBI aims to highlight the key trends of the industry for various stakeholders and policy makers,” Ramann said in a report on 4 April 2023.
Microfinance Pulse aims to provide insights on trends in the Indian Microfinance industry – from disbursements to delinquencies to top growing states and top loan categories.
“We are certain that the 15th edition of Microfinance Pulse report in collaboration with SIDBI will provide valuable insights on the emerging trends in the Microfinance industry,” said Nanaiah, also Country Leader, Equifax India and MEA.
The latest edition revealed that the disbursements by value witnessed annual growth of 11% JAS’21 to JAS’22. Not for Profit MFIs witnessed highest growth in terms of disbursement amount and in terms of number of loans disbursed, NBFCs are leading by 63% from JAS’21 to JAS’22. Highest number of loans are issued under 30k-40k ticket size category and it witnessed annual growth of 13% from JAS’21 to JAS’22.
The outstanding portfolio of Microfinance Industry was ~Rs.271,350 crore as of Sept. 2022. Moreover, 90+ days past due delinquency also decreased by 68 bps Y-o-Y in September 2022 from September 2021.
As on 30 Sept 2022, top 10 districts contribute 9% towards total portfolio outstanding of microfinance industry. Bihar, Tamil Nadu, West Bengal, Uttar Pradesh, Karnataka are top 5 states.
Headquartered in Atlanta and supported by nearly 14,000 employees worldwide, Equifax (NYSE: EFX), operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region.
Since its formation in 1990, SIDBI has been impacting the lives of citizens across various strata of the society through its integrated, innovative and inclusive approach. fiinews.com
