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Business Wire India
The tenth edition of “Microfinance Pulse”, a quarterly publication by Small Industries Development Bank of India (SIDBI) and Equifax India revealed that the outstanding portfolio of the Microfinance Industry has been flat on Year-on-Year basis as of June 2021.

The outstanding portfolio of Microfinance Industry was INR 2,22,060 crore as of June 2021. Microfinance Industry disbursed loans worth INR 25,808 crore during April-June 2021 quarter registering a robust Y-o-Y growth of 300% by value and 209% by volume. However, 1-179 days past due delinquency increased in June 2021 to 31.44% from 13.59% in March 2021. West Bengal, Tamil Nadu, Bihar, Karnataka, and Uttar Pradesh were the top 5 states as of June 2021. West Bengal is the leading state with a portfolio outstanding of INR 31,024 crore. The analysis of borrower distribution by number of loans and portfolio outstanding shows that 42% of the customers have three or more loans and only 15% of the borrowers have portfolio outstanding more than INR 50,000.

On the launch, Shri Sivasubramanian Ramann, Chairman & Managing Director, SIDBI said, “The disbursement during April-June 2021 quarter has been impacted due to second wave of the pandemic, however, the impact has been less severe as compared to first wave of the pandemic, reflecting the resilience of the Microfinance sector. Although the sector has withstood the challenges, 1 to 29 DPD levels and 30 to 59 DPD levels have shown sharp increase, indicating towards initial signs of portfolio stress and resulting in an alarming overall increase in the DPD levels. Going ahead, the lenders need to carefully monitor the Microfinance portfolio to avoid further deterioration in asset quality.”

On the launch, Shri KM Nanaiah, Managing Director, Equifax Credit Information services Pvt. Ltd. and Country Leader, Equifax India and MEA said, “The tenth edition of Microfinance Pulse report in collaboration with SIDBI provides cutting edge analysis to address key questions of practitioners and policymakers. In a tough year, the Microfinance industry stood its ground, by staying flat Y-o-Y with remarkable growth in disbursements in the quarter ending in June 2021. Banks led this disbursement growth story with 57% share across lenders.”

Microfinance Pulse aims to provide insights on trends in the Indian Microfinance industry – from disbursements to delinquencies to top growing states and top loan categories. The report is being published in 12 vernacular languages in addition to Hindi and English.


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