West Bengal has retained its status as the most influential state in microfinance loan outstanding, substituting Tamil Nadu, while Bihar prevailed in the 3rd position.
In West Bengal, the Microfinance loan outstanding (MFLO) was Rs. 34,853 crores in December 2020, accompanied by Tamil Nadu’s Rs. 31,520 crores and Bihar’s Rs. 25,247 crore, correlating with Microfinance Institutions Network (MFIN) data, a self-regulator for the division.
Tamil Nadu was leading with Rs. 34,141 crores 3 months ago. Followed by West Bengal, which had Rs. 32,881 crores. Bihar, in 3rd position, had Rs. 24,984 crores microfinance loan outstanding.
The Top 10 states compose around 82% of the Rs. 2.33 lakh crores microfinance loan sector, which does not constitute bank loans provided to self-help associations.
Portfolios at risk over 30 days (PAR>30) were 10.9% on 31st December 2020, showing a drastic decline from 2.42% in the year-ago time, primarily due to the pandemic’s influence.
The MFLO provisioned to 5.83 crore individual borrowers through 10.50 crore loan records. The complete microfinance enterprise had a total loan portfolio of Rs. 2,32,648 crores as of December 2020, recording a 10% growth year-on-year (Y-o-Y) and reflecting the pre-covid figures.
According to MFIN statistics, 14 banks, including Bandhan Bank, possess the highest share of micro-credit portfolio with Rs. 97,956 crores loan outstanding, which is 42.10% of sectoral assets. NBFC-MFIs are the 2nd biggest micro-credit provider with an amount of loan outstanding of Rs. 72,128 crores, estimating 31%. Small investment banks have an overall loan amount outstanding of Rs. 39,062 crores with a 16.79% share, while NBFCs and other MFIs account for the remainder.