Micro-credit disbursements decline 35.8 pc in third quarter of current fiscal: MFIN

Kolkata, Feb 26 (PTI) Disbursement of microfinance loans has declined 35.8 per cent to Rs 22,091 crore during the third quarter ending December 2024 as compared to the similar previous corresponding period, Microfinance Institution Network (MFIN), an umbrella body of the microfinance institutions (MFIs), said in its report.

Assets under management (AUM) of the MFIs at the end of December 2024 stood at Rs 1,42,695 crore, showing a decrease of 0.1 per cent against the same period ending December 2023.

The average loan amount disbursed per account during the third quarter was Rs 51,691 crore, registering an increase of 15.2 per cent in comparison to the same quarter of the previous fiscal.

Portfolio at risk (PAR), defined as unpaid loans of more than 30 days, deteriorated to 8.8 per cent as of December 31, 2024, compared to 3.5 per cent in the previous corresponding period ending December 31, 2023, the report said.

During the current third quarter, NBFC-MFIs received debt funding of Rs 12,921 crore, mainly contributed by the banks. The total equity of the MFIs increased by 9.3 per cent during the current third quarter and stood at Rs 35,451 crore.

CEO and director MFIN Alok Misra said, "The industry is going through a period of curtailed funding due to stricter credit underwriting norms. The gross loan portfolio (GLP) of the sector as of December 31, 2024, stood at Rs 3,85,348 crore". PTI dc NN

Source: PTI