CRIF High Mark, one of the leading credit bureaus of India has announced the nineteenth edition of ‘CRIF MicroLend Vol XXI – September 2022’ – quarterly publication with an overview of the Micro-lending industry in India. The current edition provides insights on the micro-lending portfolio as of September 2022.

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.”