According to a report by a credit information provider, the microfinance lending industry saw an increase in its portfolio during the December quarter, jumping by 30.9% to Rs 4.02 lakh crore. The total portfolio recorded a 6% gain when compared to the September quarter prior.
Furthermore, as per the the PTI-highlighted data, non-banking financing companies - also known as microfinance institutions - remain at the forefront of the industry, commanding a substantial 38.3% market share. Banks rank second with 33.4%, small financing banks second with 17.4%, and non-bank financial companies third with 9.4%.
From the standpoint of asset quality, loans that are not repaid for more than 30 days remained steady at 2%, and loans that are not repaid for more than 90 days remained steady at 0.9%.
The data also shows that the average balance per borrower increased marginally to Rs 48,900 in the December quarter from Rs 48,200 in the quarter prior and Rs 46,900 in the year prior. The majority of borrowers (83.4%) had exposure to fewer than two lenders in December, with
Tamil Nadu has the highest rate of multiple borrowings by borrower.
When compared to the previous quarter, West Bengal and Uttar Pradesh saw the biggest rise during the quarter, although Bihar held the largest share of the total loan portfolio, the report stated.
According to the report, the top ten states account for 83% of the microlending market's total revenue. The apex bank is already exerting significant pressure on loans for smaller amounts at this time. Microfinance institutions (MFIs) were chastised earlier this month by RBI Deputy Governor M. Rajeshwar Rao for charging exorbitant interest rates to borrowers.
