Micro credit grows 43 per cent

Chennai: Micro credit grew 43 per cent in the June quarter with gross loan portfolio touching Rs 1.9 lakh crore. Banks grabbed the highest share of gross loan portfolio, growing 74 per cent.

The aggregate gross loan portfolio (GLP) went up by 42.9 per cent from Rs 1.33 lakh crore at the end of June 2018 to Rs 1.9 lakh crore in last quarter, continuing its growth trajectory over the past few quarters.  The total number of microfinance loan accounts stood at 9.27 crore in the April-June quarter against 6.68 crore in the year ago quarter, data from Microfinan-ce Institutions Network (MFIN) shows.

Banks hold the largest share of portfolio in micro-credit with total loan outstanding of Rs 78,060 crore, which is 40.9 per cent of the total micro credit. Banks have grown their GLP by 73.8 per cent from Rs 44,901 crore in Q1 2018. NBFC-MFIs grew their GLP by 16.3 per cent to Rs 57,601 crore from Rs 49,516 crore a year ago.