YoY: In Third Quarter MFI Industry Grew 60% In Eastern Region

न्यूज़ वर्ल्ड इंडिया | 0
| March 3 , 2019 , 11:10 IST

Microfinance institutions witnessed a 60 percent on-year credit growth in the east and northeastern states during the quarter ended December, brokerage Kotak Securities said in a report.

"NBFC-MFIs saw 60 percent YoY rise in loans in the states of Assam, Bihar, Jharkhand, Odisha, and West Bengal," Kotak Securities said in the note.

The MFI industry in the December quarter grew by 43 percent year-on-year, but was slower than the 50 percent rise registered in the second quarter of the 2018-19 fiscal, it said.

However, "NBFCs led the QoQ deceleration, probably due to the recent tightness in liquidity conditions," the brokerage said.

The share of loans increased 200 basis points YoY to 37 percent in the east, and about 53 percent of the expansion of incremental branch additions were in the region during the period under review, the note said.

"The NBFC-MFIs (aligned with MicroFinance Institutions Network) saw a sharp increase in securitization in overall funding mix to 44 percent. Within debt funding, the share of bank borrowings increased to 67 percent," Kotak said.

The MFI Network had said member NBFC-MFIs received a total of Rs 8,235 crore in debt funding in the quarter to December.

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"The MFI industry is in resurgence phase. Therefore, we are optimistic about better Q4 growth. The industry is expected to grow at 40-45 percent," said Kuldip Maity, MD and CEO, Village Financial Services.

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