MFIs continued to occupy the largest share in the pie with 40 percent and followed by banks at 32 percent and SFBs at 18 percent.
Speaking at a conference organised by Sa-Dhan, he said, MFIs should also focus on capacity building to deal with the challenges of the future.
According to the Sa-Dhan report, the microfinance sector has recorded an overall 21 percent growth during the financial year 2022-23
The partnership intends to help millions of feature-phone users to make digital payments under the micro finance ecosystem, a joint statement said on Sunday.
At Sa-Dhan, Satish had consistently engaged with the Reserve Bank of India , Government and banks to highlight the problems of small lenders and has succeeded in getting the required attention for such companies.
The gross loan portfolio stood at Rs 2,27,843 crore in the corresponding period of the previous fiscal.
Small MFIs bore the major brunt as access to funds from banks was restrained, Satish said.
MFIs have sought a special liquidity facility of at least Rs 15,000 crore through NABARD and SIDBI.
In a letter to the FM, Sa-Dhan said the second wave of COVID pandemic has begun hurting the operations of microlenders.
Presently, microlenders can charge only upto 2.75 times of the base rate of five large commercial banks. But they borrow at 16-18 percent from NBFCs. This puts pressure on their margins.
It said that despite the Reserve Bank of India's circular pertaining to the moratorium on retail loans, financial institutions are refraining from extending the same benefits to microfinance institutions.
NBFC-MFIs accounted for 88 percent of the loans, followed by Societies and Trusts at 9 percent, it said.
With the Cabinet clearing the Micro-Finance (MFI) Bill, with proposals to set up a development council and appointing the RBI as regulator, SKS Microfinance CFO Dilli Raj and Sa-Dhan ED Mathew Titus offer the industry's perspective of the Bill