MFIs loan portfolio grows by 54% in Q2

HYDERABAD: The aggregate gross loan portfolio (GLP) of the micro finance institutions (MFIs) grew by 54% in the second quarter of FY14, with over 90% MFIs showing positive growth in this period over the second quarter of FY13, said Microfinance Institutions Network (MFIN) in its report ‘MicroMeter’.
Commenting on the development, MFIN chief executive officer Alok Prasad said, “MFIs are dedicated to bringing affordable financial access to the unbanked and the under-banked.The industry data is showing extremely positive trends. Also, it is heartening to see the high growth rates of MFIs in the hitherto under penetrated states such as Uttarakhand, Rajasthan, Punjab and UP. The microfinance industry’s contribution to promoting access to finance and micro-entrepreneurship is clearly very good news for the larger national agenda of inclusive growth.”
During the second quarter of FY14, the total loan disbursals increased by 50% as compared to second quarter of FY13.
"During the second quarter of FY14, funding had picked up with an increase of 297% over the first quarter of FY14. MFIs received total debt funding of Rs 37.80 billion out of which 86% came from banks and rest from other financial institutions (FIs)," the report said.
The analysis presented in report was based on data collected from 42 MFIs which on an aggregated basis, constitute around 85% of the microfinance business in the country (excluding SHGs), it added.