Micro loan book grows by 25% in Q3 FY23

Chennai: Microfinance loan book grew by 25.2 per cent at the end of the December quarter, according to Microfinance Institutions Network (MFIN).

The gross loan portfolio grew to ₹3.2 lakh crore at the end of December from ₹2.56 lakh crore in the year-ago period. NBFC-MFIs constituted around 39 per cent of the total loan portfolio or ₹1,23,386 crore. NBFC-MFIs saw a growth of 41.4 per cent in loan portfolio against ₹87,444 crore in the same quarter last year.

Banks followed with loans outstanding of ₹1,14,546 crore or 35.7 per cent share of the total micro-credit. Banks registered a growth of 10.6 per cent in the December quarter. Small finance banks had a loan book of ₹52,192 crore and a share of 16.3 per cent. Active micro loan accounts increased by 18.6 per cent during the past 12 months to 12.6 crores.