MFIs lead in microfinance

Kolkata: 3Microfinance Industry Network (MFIN), an umbrella body of microfinance institutions (MFIs) of the country, in its report said that NBFC-MFIs are the largest provider of micro-credit amongst other regulated entities.

In a report of the MFI sector prepared by MFIN for the year 2022-23, it said that in the microfinance space, NBFC-MFIs provided finance with loan outstanding of Rs1,38,310 crore as on March 31, 2023, accounting for 39.7 per cent of total industry portfolio. Banks, on the other hand, hold the second largest share of portfolio of micro-credit with total outstanding of Rs 1,19,133 crore, comprising 34.2 per cent of the total in the microfinance space.

Small finance banks (SFBs) have a total outstanding of Rs57,828 crore with a total share of 16.6 per cent, the report said. At the end of the last financial year, the total MFI portfolio stood at Rs3,48,339 crore. According to the report, the MFI sector has immense growth potential with the market size estimated by MFIN to be around Rs 13 lakh crore during the current fiscal 2023-24. MFIN said that the new regulations have guided the strengthening of governance in microfinance operations.