BackMicrofinance portfolio grows 21% in FY23, shows Sa-Dhan data
As per the quarterly report of Sa-Dhan, there has been an across-the-board growth among all kinds of microfinance players in FY23
PremiumMUMBAI : India’s microfinance sector has recorded an overall portfolio growth of 21% during 2022-23, as per data from industry body Sa-Dhan.
As per the quarterly report of Sa-Dhan, there has been an across-the-board growth among all kinds of microfinance players in FY23. Except for banks (other than small finance banks), all other institutions recorded double-digit growth, with non-banking financial companies (NBFCs) recording a 49% growth and NBFC MFIs growing 37%. In comparison, banks recorded a growth of 3% in portfolio during the year.
According to Jiji Mammen, executive director and chief executive of Sa-Dhan, the microfinance sector has shown significant performance during the last financial year and the overall growth suggests that the industry has come out of covid-19 blues and is on a growth path.
“The new regulatory norms have created a level playing field and it is reflected in the growth of portfolio of NBFC and NBFC MFIs," said Mammen.
The number of loan accounts for the microfinance industry increased to 136.3 million in FY23, from 123.9 million in FY22, posting a year-on-year (y-o-y) growth of 10%. Lender-wise figures showed that NBFCs registered highest y-o-y growth of 23%, followed by NBFC-MFIs at 15%, not-for profits or NFPs at 6%, banks at 6%, and small finance banks at 5%.
As per the data, market share of lenders in terms of portfolio shows NBFC-MFIs accounted for the largest share at 39.72%. Banks are the second-largest provider of micro credit at 34.14%, SFBs, NBFCs and NFPs accounted for 16.62%, 8.44% and 1.07% of the market share, respectively.
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