Microfinance disbursements slowed in Q1 FY23 after new regulations: MFIN

0



loan disbursement by non-banking companies and institutions (NBFC-MFIs) slowed down sequentially to Rs 22,745 crore in April-June 2022 from Rs 30,731 crore in January-March 2022 as lenders adapted to new regulatory norms.


Yet, NBFC-MFIs were able to grow their gross loan portfolio (GLP) by 2.01 per cent quarter-on-quarter (QoQ) to Rs 98,508 crore at end of June 2022. Their loan book expanded by 30.1 per cent year-on-year (YoY) from Rs 75,677 crore, according to data from Institutions Network (MFIN).


Micro loan disbursement by NBFC-MFIs stood at Rs 6,279 crore in April-June 2022 (Q1 FY22). This was the quarter when the second wave of Covid-19 pandemic and restrictions imposed to curb the disease spread disrupted economic activity.


Alok Misra, CEO and director of MFIN, said after new regulations were announced in March 2022 most institutions took time for making policy changes. The industry was still able to record a growth of (30.2 per cent) in portfolio Year-on-Year (YoY) and 2.7 per cent over the previous quarter. The trend will further strengthen in the coming quarters with supportive operating and regulatory environment.


MFIN chairperson Devesh Sachdev said the sector would grow during the remaining period of FY 22-23, riding on robust branch expansion, pent-up demand and conducive policy.


Despite the slowdown in disbursements in Q1FY23, MFIs continued to expand their network and added employees on the roll during the quarter. Branches grew to 17,600 at end of June 2022 from 16,890 in March 2022 and 14,902 in June 2021. Headcount grew to 147,459 in June 2022 from 142,811 in March 2022 and 120,954 in June 2021.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here