Chennai: South India has become the top region which contributes to the highest share of microfinance gross loan portfolio in the December quarter, grabbing the slot from East and North-East region. Andhra Pradesh and Telangana were the key drivers of the growth.
By December quarter of FY24, south India improved its contribution to microfinance portfolio to 31.14 per cent, gradually improving it from 25 per cent in March quarter of FY21. On the other hand, East and north-east India, which had a share of 40 per cent in Q4FY21, brought it down to 31.06 per cent, according to the MFIN.
“There has been a significant change in the portfolio distribution across regions. South India is now the largest contributor to the microfinance portfolio contributing 31.14 per cent. East and North-East, which was the leading region in terms of outstanding portfolio, now contributes 31.06 per cent, slightly less than South,” said Alok Misra, CEO and Director of MFIN.
“The portfolio in southern states continues to grow, especially in Telangana and Andhra Pradesh, where some growth of portfolio has been registered whereas the growth of portfolio slowed down in West Bengal resulting in redistribution of share of portfolio among these regions”, he added.
The northern region has 15.3 per cent share and the west 16.2 per cent while the central region contributes 6.3 per cent to the Gross Loan Portfolio.
As on Dec 31, 2023, the total GLP grew 24.6 per cent to Rs 3,99,442 crore against Rs 3,20,584 crore in the same quarter in FY23. Assets under management of NBFC-MFIs stood at Rs 1,41,980 crore as on Dec 31, 2023, a 36 per cent YoY rise as compared to Rs 1,04,361 crore as on Dec 31, 2022.
Microfinance loan disbursals in Q3 FY24 were Rs 78,584 crore as compared to Rs 77,877 crores in the same quarter of last financial year. A total of 1.66 crore loans were disbursed during Q3 FY24 as against 1.89 crore in Q3 FY23. END
