: Microfinance industry recovered faster post second wave of Covid: SIDBI Study #finance #StockMarketNEWS Microfinance industry recovered faster post second wave of Covid: SIDBI Study New Delhi, Feb

Microfinance industry recovered faster post second wave of Covid: SIDBI Study #finance #StockMarketNEWS
Microfinance industry recovered faster post second wave of Covid: SIDBI Study New Delhi, Feb 14 (KNN) The eleventh edition of the quarterly publication by Small Industries Development Bank of India (SIDBI) and Equifax India, Microfinance Pulse, has revealed that the outstanding portfolio of the Microfinance Industry has registered Q-o-Q growth of 2% as of September 2021.

Microfinance sector disbursed loans worth Rs 66,681 crore during July-Sept 2021 quarter registering a robust Y-o-Y growth of 96% by value and 94% by volume from the corresponding quarter during July-September 2020.

The outstanding portfolio of the industry was Rs 2,26,000 crore as of Sept 2021.

Moreover, 90 days past due delinquency also decreased to 2.95% in Sept 2021 from 3.01% in June 2021. Tamil Nadu, West Bengal, Bihar, Karnataka and Uttar Pradesh were the top five states in terms of portfolio outstanding as of Sept 2021.

Tamil Nadu is the leading state with a portfolio outstanding of Rs 29,000 crore. Banks lead the industry with the highest portfolio outstanding of Rs 92,000 crore followed by NBFC-MFIs with portfolio outstanding of Rs 80,000 crore.

In a statement, Sivasubramanian Ramann, Chairman & Managing Director, SIDBI said, “Microfinance has evolved as an important financial delivery mechanism to promote financial inclusion. Due to the hardship and loss of livelihoods caused by the pandemic, the sector needs a renewed focus of all the stakeholders”.

The declining delinquency trends in the sector in the Sept 2021 quarter is also encouraging for the future growth prospective, he added.

The faster recovery in microfinance disbursements after the second wave of COVID impact clearly demonstrates the resilience of the industry in the country.

We believe this report will provide valuable insights on the emerging trends in the Microfinance industry, said KM Nanaiah, Managing Director, Equifax Credit Information services Pvt. Ltd. and Country Leader, Equifax India and MEA, in a statement.

Microfinance Pulse aims to provide insights on trends in the Indian Microfinance industry from disbursements to delinquencies to top growing states and top loan categories.

The report is being published in 12 vernacular languages in addition to Hindi and English. (KNN Bureau)