Microfinance sector grows 23 percent in FY20
The microfinance sector ended FY19-20, on a high note with a growth rate of 23 per cent over the previous year, according to CRIF Microlend’s quarterly report. The gross loan portfolio of the microfinance sector stands at Rs 2.32 lakh crore at the end of March 2020, a growth of 9 per cent quarter-on-quarter.
According to the report, Rs 65,610 crore was disbursed in Q4FY20, which is a 3.5 per cent growth over the previous quarter. The report states that while the sector grew at a sluggish pace in the first half of the previous fiscal year, it picked up momentum in the third quarter and attained maximum Q-o-Q growth in the last quarter.
Disbursements by value have grown slower than the previous quarter and have seen a dip in terms of volume even though loans of ticket sizes over Rs 60,000 saw a 33 per cent increase over the previous quarter. Asset quality across lenders has also deteriorated compared to the previous quarter as banks have been impacted by early defaults.
Source: Publication: The New India Express, 23rd July 2020