*Key highlights of the report*
· Portfolio outstanding of Microfinance sector at ₹300K crore as of Sep’22 with 5% Q-o-Q and 21.5% Y-o-Y growth
· NBFCs dominate the market with portfolio share of 35.1%, surpassing Banks 34.8%, SFBs 16.8%, as of Sep’22
· PAR 30+ DPD improved from 5.8% as of Jun’22 to 5.4% as of Sep’22, PAR 90+ DPD increased from 2.2% to 2.7% during the same
· period
· Top 10 states by GLP contribute to 84.2% of national GLP, Bihar recording highest Q-o-Q growth
· ₹65.3K crore originations (by value) and 163.5 lakh originations (by volume) in Q2 FY23
*Geographic Deep Dive*
· Top 10 states constitute 84.2% of the GLP as of Sep’22
· Bihar, Karnataka and Uttar Pradesh recorded highest Qo-Q growth of 9.8%, 8.2% and 8.1% respectively as of Sep’22
· Average balance per borrower for top states, Tamil Nadu, Bihar and West Bengal stood at ₹51.9K, ₹53.1K and ₹47.3K, as of Sep’22
· Microfinance sector dominated by Eastern region (32.7%) followed by South (26.9%), as of Sep’22
· 42.4% of banks’ portfolio is concentrated in eastern region. NBFC MFIs have 28.7% share in East. SFBs have concentration of 36% in South
*Risk Profile – Geographic Deep Dive*
· PAR 30+ DPD as of Sep’22 is lower for all top 10 states compared to overall Industry (5.4%), except West Bengal, Madhya Pradesh and Kerala
· PAR 30+ DPD as of Sep’22 reduced Q-o-Q for all top 10 states except West Bengal and Uttar Pradesh, remained stable for Madhya Pradesh and Odisha
· PAR 90+ DPD as of Sep’22 increased Q-o-Q for all top 10 states except Tamil Nadu, Karnataka and Kerala as of Sep’22
· PAR 180+ DPD as of Sep’22 increased Q-o-Q across all top 10 states except Bihar and Uttar Pradesh
· PAR 90+ DPD as of Sep’22 witnessed Y-o-Y decline for all top 10 states
Commenting on the report *Mr. Sanjeet Dawar, Managing Director, CRIF High Mark, *said, “CRIF MicroLend Report Vol XXI shows significant improvement in microfinance book as of Sep’22 over the previous quarter. The portfolio outstanding of the microfinance sector stands at ₹300K crore as of Sep’22, witnessing Y-o-Y growth of nearly 22% and 26% Y-o-Y growth in the rural market portfolio over the same period. New loan originations by value and volume in Q2 FY23 witnessed a growth of nearly 20% over the previous quarter. This enhanced performance combined with the revised regulatory framework brought out by the RBI shall provide a boost to the microfinance industry.”