MFI’s gross loan portfolio dip 1.1 pc to Rs 2,25,331 cr at Sep-end says Report

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MFI’s loan portfolio shrinks in September quarter

New Delhi. The overall loan portfolio (GLP) of micro finance institutions (MFIs) declined marginally by 1.1 per cent to Rs 2,25,331 crore in the September quarter. This information has been given in a report of Sa-Dhan. In the September quarter of the previous financial year, the loan portfolio of MFIs stood at Rs 2,27,843 crore. Sa-Dhan, a self-regulatory organization for the microfinance sector, has a strength of 229 members. These include institutions promoting self-help groups, MFIs, banks, rating agencies and capacity building institutions.

The report said that the total credit disbursement of all lenders increased to Rs 66,694 crore during the second quarter of the current financial year from Rs 34,135 crore during the corresponding quarter of the previous financial year. Sa-Dhan Executive Director P Satish said that in the first quarter of the current financial year, the sector was badly hit by the second wave of the Covid pandemic. But now there is improvement in both repayment and disbursement of loans in this sector. He added that the sector’s downside is being contained, though fund raising and operations of medium and small MFIs remain under pressure.

He said that we expect to see a gradual recovery in the next quarter as the income of the borrowers will be more stable. According to the report, as of September 30, portfolios outstanding for more than 30 days stood at 10.8 per cent and portfolios outstanding for more than 90 days were at 2.96 per cent.

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