MFI Portfolio Crosses Rs 4 Lakh Cr Mark Across India: Report

The portfolio of Micro-finance Institutions (MFI) has reached almost Rs 4 lakh crore during the third quarter of the current financial year, according to a report by the self-regulatory organisation Microfinance Industry Network (MFIN). The report indicates that the industry witnessed a robust growth of 24.6 per cent over the last financial year, and portfolio delinquency has reached pre-Covid levels, indicating an improvement in the sector's health. 

The report also highlights a significant change in the portfolio distribution across regions, with South India emerging as the largest contributor to the MFI portfolio, followed by east and northeast regions. The assets under management (AUM) of the MFI-NBFC members of MFIN stood at Rs 1,41,980 crore as of December 2023, a rise of 36 per cent year-on-year over the similar previous period. 

During the third quarter of the current fiscal, the average loan disbursed per account stood at Rs 45,705, approximately 8.2 per cent higher than the previous period. The report further reveals that NBFC-MFIs received total debt funding of Rs 21,847 crore, which is higher by 57.3 per cent over the similar previous period. Additionally, the total equity base of the NBFC-MFIs grew 37.7 per cent to Rs 31,825 crore, a rise of 37.7 per cent year-on-year, according to the report.