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Tuesday, December 07, 2021

‘June quarter: Micro lending falls 6.9 per cent on 2nd wave hit’

The year-on-year (YoY) growth was less than one per cent from Rs 2,34,100 crore last year. The June quarter also witnessed a steep quarter-on-quarter decline in disbursements along with high delinquencies.

By: ENS Economic Bureau | Mumbai |
October 21, 2021 1:46:02 am
CRIF said Rs 23,700 crore was disbursed in the June quarter of FY22, down 73 per cent from Rs 88,500 crore in the March quarter of FY21 while disbursements grew 273.4 per cent from Rs 6,372 crore.

The second wave of Covid pandemic and the subsequent lockdown impacted the microfinance sector’s growth in the April-June quarter of the current financial year. The growth in the gross loan portfolio of microfinance lenders declined by 6.98 per cent quarter-on-quarter (QoQ) from Rs 2,53,800 crore in March quarter of FY21 to Rs 2,36,100 crore in the April-June quarter of FY22, according to CRIF High Mark, a credit bureau.

The year-on-year (YoY) growth was less than one per cent from Rs 2,34,100 crore last year. The June quarter also witnessed a steep quarter-on-quarter decline in disbursements along with high delinquencies.

CRIF said Rs 23,700 crore was disbursed in the June quarter of FY22, down 73 per cent from Rs 88,500 crore in the March quarter of FY21 while disbursements grew 273.4 per cent from Rs 6,372 crore. The average ticket size also declined by 7.4 per cent from Rs 38,900 in the fourth quarter of FY21 to Rs 36,000 in the June quarter of FY22, with maximum degrowth of 11.7 per cent recorded in Rs 20,000-30,000 ticket size followed by 10.5 per cent contraction in Rs 30,000-40,000 bracket, it said.

Loans over Rs 60,000 declined by only 2.5 per cent. Even in terms of year-on-year performance, the average ticket size managed to improve by only 0.9 per cent with the highest growth of 56.6 per cent witnessed in the less than Rs 10,000-loan bracket.

According to CRIF, in terms of delinquencies, portfolio at risk (PAR) or proportion of portfolio delinquent by 31-180 days past due (30+ DPD), calculated as a percentage of total portfolio outstanding, was 15.4 per cent in June 2021, higher compared to 9.7 per cent in March 2021 for all ticket sizes and all lender types.

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