India's microfinance loan portfolio grew by 9% to Rs 631 bn in Q3: Report

The total gross loan portfolio of microfinance industry is estimated to have grown by 9 per cent to Rs 630.81 billion for the September quarter this fiscal from the previous quarter, a report said.

Sa-Dhan, an association of microfinance institutions, in its report said Karnataka, Bihar, West Bengal, Uttar Pradesh and Odisha were the top five states in terms of loan portfolio share.

" gross loan portfolio stands at Rs 63,081 crore an increase of 9 per cent from the previous quarter... NBFC-MFIs have the largest market share (35.63 per cent), followed by banks (30.47 per cent), small finance banks (20.44 per cent) and others (13.46 per cent) in Q2," it said.

As of September 2018, total client outreach of the sector was 29.9 million, a growth of 8 per cent from previous quarter, and the overall non-performing assets (NPA) of the sector is at 0.63 per cent, the report pointed out.

"As of now, we are witnessing the resurgence of the microfinance industry. Q2 results of FY2018-19, has been commendable for the sector. We are confident that this growth will continue till the financial year closure," Sa-Dhan Executive Director P Satish said.

He, however, cautioned that the overall impact of the recent Supreme Court ruling that bars private companies from seeking Aadhaar data, will be visible by end of the December quarter.

In September, the apex court had ruled that private entities could not demand from citizens the 12-digit unique ID number.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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