Microfinance Industry Resilient in 2020 with Strong Growth: Equifax-SIDBI Study
Mumbai, Maharashtra, India: The eighth edition of “Microfinance Plus”, a quarterly publication by Small Industries Development Bank of India (SIDBI) and Equifax revealed growth in the portfolio outstanding by 16% year on year, indicating the resilience of the Indian Microfinance industry. From the overall industry’s gross loan portfolio, 55% was contributed by 5 states with West Bengal having the highest outstanding portfolio.
Key highlights:
- Microfinance industry portfolio showed outstanding (POS) growth: 16% from Dec’ 19 to Dec’ 20
- Banks witnessed the highest Y-o-Y growth in POS of 23% across all the lenders from Dec’ 19 to Dec’ 20
- Disbursement by amount grew by 84% and number of loans disbursed grew by 97% in OND’20 quarter as compared to previous quarter
- 0K-10K ticket size loans have registered highest Y-o-Y growth of 240% from OND’19 to OND’20 quarters
- Industry 1+ delinquencies show a peak in Dec’ 20 at 21%
- Top 5 states contribute 55% to Pan India portfolio (West Bengal, Tamil Nadu, Bihar, Karnataka & Maharashtra)
- West Bengal is contributing highest at 15% towards total portfolio outstanding
On the launch, Shri KM Nanaiah, Managing Director, Equifax Credit Information services Ltd. and Country Leader, Equifax India and MEA said, “The eighth edition of Microfinance Pulse report in collaboration with SIDBI provides cutting edge analysis to address key questions of practitioners and policymakers. In a tough year, the Microfinance industry stood its ground, by growing the portfolio by 16% YoY. Banks led this growth story with the highest growth across lenders.”
Microfinance Pulse aims to provide insights on trends in the Indian Microfinance industry – from disbursements to delinquencies to top growing states and top loan categories. The report is being published in 12 vernacular languages in addition to English.
Disclaimer: This content is distributed by Business Wire India.
