Non-banking finance companies-microfinance establishments (NBFC-MFI) and small finance banks have gained market share in microfinance lending sector on the expense of banks as they outperformed the lenders when it comes to development in gross mortgage portfolio (GLP) on a year-on-year foundation within the fourth quarter of the monetary 12 months ended March 31.
Although banks proceed to dominate the microfinance portfolio with over 37% market share, the NBFC-MFIs and SFBs posted double digit on 12 months development in GLP in Q4FY22 in comparison with a muted on 12 months development witnessed by banks, credit score info bureau CRIF mentioned in its quarterly Microlend report. On a sequential foundation nonetheless, banks posted 8.1% development in microfinance mortgage portfolio, marginally decrease than NBFC-MFI development of 8.2% however increased than 7.1% development posted by SFBs.
Overall, the gross mortgage portfolio of the microfinance sector grew by 10.2% in Q4FY22 to Rs 2.86 trillion. Despite enhance in GLP, mortgage originations declined by 13.9% on 12 months to Rs 77,400 crore in Q4FY22 and loans disbursed additionally fell by 17.2% on 12 months to 1.91 crore loans.
The variety of accounts that have been overdue for greater than 180 days elevated on a year-on-year foundation, as per information compiled by CRIF exhibits. In Q4FY22, accounts that have been overdue for greater than 180 days (PAR 180+) jumped to eight.4% of the gross mortgage portfolio from 4.4% in the identical quarter final 12 months. The company compiled the info for prime 30 MFI establishments with a market share of 88% as of Q4FY22. However, there was an enchancment within the accounts that have been overdue for greater than 30 days and 90 days.
The prime 5 finest performing lenders have mortgage overdue of greater than 30 days of 1.5% of their cumulative GLP, 0.8% of mortgage overdue for greater than 90 days and seven.4% of loans overdue for greater than 180 days.
In phrases of ticket measurement, the loans within the vary of Rs 30,000-50,000, which comprised the best share of the GLP, improved 42% on 12 months whereas loans with ticket measurement of Rs 50,000-75,000 grew by 14.4% on 12 months. The two ticket sizes include greater than 60% of the entire GLP within the sector.
In geographical combine, prime 10 states embody Tamil Nadu, Bihar, West Bengal, Karnataka, Maharashtra, Uttar Pradesh, Rajasthan, Odisha, Madhya Pradesh and Kerala, which represent 83.4% of the GLP as of March 31. Of the entire portfolio held by banks, 44.3% is concentrated in jap area. NBFC MFIs have 27.5% share every in east and south and SFBs have focus of 36.7% in south out of the entire GLP.
Source: www.financialexpress.com”