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June, 19

NBFC-MFIs’ AUM rises 42% y-o-y led by increase in Q1 disbursements

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Assets under management of NBFC-MFIs’ rose 41.6 per cent y-o-y to ₹1.3 lakh crore as of June 2023, led by a 45.8 per cent increase in Q1 disbursals to ₹30,398 crore. The AUM accounted for 41 per cent of the total outstanding MFI loans as of June 2023.

NBFC-MFIs disbursed these loans through 68.9 lakh accounts, as compared to disbursements of ₹20,845 crore in the year-ago period through 51.2 lakh accounts, as per Microfinance Industry Network (MFIN)’s Micrometer report for Q1FY24.

Of the AUM as of June 2023, ₹1 lakh crore was owned portfolio and ₹22,111 crore was managed or off-balance sheet loans, the report said, adding that the average loan ticket size increased 8.3 per cent y-o-y to ₹44,114. “During Q1FY24, NBFC-MFIs received a total of ₹15,708 crore in debt funding, which is 65.7 per cent higher than Q1FY23. Total equity of the NBFC-MFIs grew by 30.2 per cent y-o-y to ₹26,290 crore as on June 30, 2023,” the report said.

Microfinance sector

On an overall basis, microfinance loans were up 19.5 per cent for the 11-month period ended May 2023 to ₹3.5 lakh crore, serving 7 crore unique borrowers through 13.2 crore loan accounts.

About 1.02 crore loans were disbursed during April-May, with the trend indicating Q1 disbursements to be higher than the 1.16 crore loans disbursed in Q1 FY23. Loans worth ₹43,501 crore were disbursed during these two months compared with ₹45,830 crore disbursed in April-June of 2022. “Once June data is available the y-o-y growth will be higher. The sector has increased client outreach by nearly 1 crore during the last 11 months,” said MFIN CEO and Director Alok Misra.

He added that the portfolio quality of loans improved, with the 1-60 day PAR (portfolio at risk) bucket declining to 1.77 per cent in May 2023 from 3.62 per cent a year ago.

Segment-wise disbursements

Banks were the second largest micro credit lenders with total loan outstanding of ₹1.1 lakh crore, accounting for 32.5 per cent of total loans, followed by small finance banks which had an AUM of ₹60,293 crore and market share of 17.2 per cent. NBFCs accounted for another 8.7 per cent and other MFIs for the remaining 1 per cent.

East, north-east and southern States comprised 63 per cent of the total portfolio, with Bihar maintaining its position as the largest State in terms of portfolio outstanding, followed by Tamil Nadu and Uttar Pradesh. The share of East and North-east states fell to 34.4 per cent from 37 per cent a year ago, whereas that of South and North regions gained over 1.5 per cent each.

Active microfinance loan accounts were up 12.5 per cent to 13.2 crore in May 2023, the report said.





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