The micro-finance lending business picked up steam in the second quarter (ending September) and grew 6.7% from the previous quarter to a value of Rs 1.6 lakh crores.
A report from credit bureau Crif High Mark revealed the numbers. On Monday, the credit bureau shared a note stating those numbers.
GLP for quarter ending June 2018 stood at Rs 1.5 lakh crores signifying that margin.
Fresh disbursal on a quarterly basis have dipped for the quarter ending September. In Q2, the total disbursal stood at Rs 37095 crores against disbursal of Rs 43,473 crores in Q1 of the fiscal year.
Disbursals by Quarter. Source: Crif High Mark
Bulk of the micro-finance has been effected by Small Finance Banks and NBFC MFIs. Banks, however have marginally improved their share from 29.83% in last comparison year to 30.47% in the current one.
Quarterly disbursements 8.8% higher than same period last year; NBFC-MFIs are more aggressive in disbursements – 40.6% of fresh disbursements coming from NBFC-MFIs, 33.7% coming from Banks
Also, average ticket size of borrowing has increased to Rs 29,000 in September'18 from Rs 26,500 a year ago. Average exposure of lenders has increased to Rs 32,800.
Average Ticket Size continues to be higher and is growing in West Bengal – it was 8.7% higher than Mar-18 and nearly 15% higher YoY.
The report also assessed the risk levels of the micro-finance industry. Risk levels were studied on the basis of reports of past due portfolio in the category of 1-30 days, 31-180 days, and over 180 days.
The floods in Kerala have disrupted the micro-finance industry, more so for Small Finance Banks. Portfolio at risk (PAR) for portfolio 1-30 days has risen from 1.9% at Mar-18 and 1.56% at Jun-18 to 3% at Sep-18, primarily due to effect on books of SFB and NBFC-MFI of Kerala floods.
Kerala PAR-1-30 is now at 44%, up from 1.6% at the end of Jun-18. Business of Small Finance banks remained more affected says the report while adding that their PAR(1-30) was up at 9% (up from 3.2% in Mar-18) in comparison to 1.43% (up from 1.04%) for NBFC-MFIs.