The June quarter witnessed a marginal decline in the overall microlending outstanding on a sequential basis, but there was an improvement in the asset quality, a report said on Tuesday.
There was a 0.2 per cent decline in the overall microfinance book to Rs 2.85 lakh crore during the three months to June when compared with the number as of March-end, the report by CRIF High Mark said.
The micro loans were up 18 per cent when compared with the year-ago period, the report by the credit information company added. The April-June quarter last year, which saw the devastating second wave of the pandemic, had led to a massive impact on microlenders both from loan growth as well as delinquency perspective.
The June quarter saw Rs 49,788 crore of loans being disbursed, which was 39.2 per cent lower than what was achieved by the industry in the preceding March quarter, but 88.9 per cent higher than the year-ago period, the report said. The value delinquency for loans overdue for over 90 days reduced by 0.5 per cent on a sequential basis to 2.2 per cent at the end of the June quarter, and was down by 1.1 per cent when compared to the year-ago period, the report said.
The average balance per unique borrower declined by 1.1 per cent on a sequential basis to Rs 46,400, while the average balance per account declined 2.1 per cent. The report suggested that the decline in the MFI book was driven largely by a 0.8 per cent decline in the urban areas, while the rural markets saw a 0.2 per cent uptick.
From a geographical perspective, the top 10 markets account for 84 per cent of the outstanding loans, the report said, adding that Tamil Nadu, Uttar Pradesh and Bihar posted the highest growth figures in the June 2022 quarter. West Bengal's North 24 Parganas, South 24 Parganas and Nadia districts were the three worst performing districts on the MFI loans front, the CRIF report said.
Banks continue to dominate the market with portfolio share of 35.6 per cent, although there has been de-growth of 5.6 per cent in their portfolio on a sequential basis, it said.
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