MFI’s gross loan portfolio drops 1.1% to rupee 2,25,331 crore at end of September: report

MUMBAI: The gross loan portfolio (GLP) of microfinance lenders edged down 1.1% to Rs.225,331 crore in the September quarter, according to a report by Sa-Dhan.
The gross loan portfolio amounted to Rs 2,27,843 crore in the corresponding period of the previous fiscal year.
Sa-Dhan, a self-regulatory organization in the microfinance sector, has 229 members, including institutions promoting SHGs, MFIs (for-profit and not-for-profit), banks, rating agencies, institutions. capacity building, etc.
Total disbursement by all lenders in the second quarter of FY22 was Rs 66,694 crore, compared to Rs 34,135 crore disbursed in the same quarter last year, according to the report.
Sa-Dhan executive director P Satish said the industry, which was hit in the first quarter of this fiscal year due to the second wave of Covid, has seen improved reimbursements and new disbursements.
The decline is slowing, although tensions remain over access to funds and the operations of small and medium MFIs, he added.
“We hope and expect a gradual recovery by the next quarter as borrower incomes stabilize further,” he said.
As of September 30, the Portfolio at Risk (PAR) 30+ stood at 10.18% and the PAR 90+ at 2.96%, according to the report.
While the average collection efficiency rose to over 95% in Q2 FY2022 from 85% in Q1 FY2022, there are 13 states / UTs including Lakshadweep, Assam, Mizoram, Manipur and West Bengal, with a PAR 30+ value higher than the industry. average of 10.18 percent, according to the report.

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