Showing posts with label Microfinance Institutions Network. Show all posts

MFIs Gross Loan Portfolio grows by 84% YoY in Q2 FY16-17:MFIN Report

· Total number of loans disbursed by MFIs grew by 20% YoY in Q2 FY 16-17

· The aggregate Gross Loan Portfolio (GLP) of MFIs stood at Rs 57,941 Cr

· MFIs provided microcredit to over 3.3 Cr clients

Chandigarh, 12 December, 2016: Microfinance industry has witnessed 84% YoY growth in Aggregate Gross Loan Portfolio (GLP) of microfinance institutions in second quarter of this financial year, according to the recently released quarterly report by Microfinance Institutions Network (MFIN), a Self-Regulatory Organisation (SRO) of the RBI regulated NBFC MFIs. There was an increase of 11% in the aggregate GLP from the last quarter. In its 19th edition of the ‘Micrometer Report’ for Q2 FY16-17, MFIN observed that the microfinance industry’s total loan disbursements grew by 20% in Q2 FY2016-17 over the last year.

The aggregate Gross Loan Portfolio (GLP) of MFIs stood at Rs 57,941 crore in Q2 FY16-17 as compared to Rs 31, 551 crore in Q2 FY15-16. South India leads the way with 31% share in GLP followed by North at 28% and West at 25% and East contributing 16%.As of 30th Sep 2016, MFIs provided microcredit to over 3.3 crore clients, an increase of 54% over Q2 FY 15-16.

According to Ms. Ratna Vishwanathan, Chief Executive Officer, MFIN, “Continuing a steady momentum of growth microfinance industry witnessed 84% of YoY growth in the aggregate Gross Loan Portfolio in the last quarter. It is important to note that numbers for Q2 FY16-17 shows NPAs still at under 1% and the loan recovery rate is well above 99%.Post November 8 the ground situation has undergone a certain change and the impact will be felt for the subsequent quarter.”

Tamil Nadu, Karnataka, Maharashtra, Uttar Pradesh and Madhya Pradesh account for 54% of the total Gross Loan Portfolio in the country, with Karnataka having the largest share. During Q2 FY 16-17, MFIs disbursed 88.48 lakh loans worth Rs 18,955 crore. Average loan amount disbursed per account last year was Rs 21,469 which represents a growth of 25% over Q2 FY 15-16.MFIs indirectly provide life insurance to over 4.3 crore clients with total sum insured of over Rs 100,000 crore. MFIs also indirectly facilitate over 23 Lakhs pension accounts.In Q2 FY16-17, portfolio at risk (PAR) remained under 1%.

Given below are the Highlights from the quarter:

· As of 30th Sep 2016, MFIs provided microcredit to over 3.3 Cr clients, an increase of 54% over Q2 FY 15-16

· The aggregate gross loan portfolio (glp) of MFIs stood at Rs 57,941 Cr (excluding non-performing portfolio i.e. PAR > 180 days in Andhra Pradesh). This represents a YoY growth of 84% over Q2 FY 15-16 and an increase of 11% over the last quarter

· Loan amount disbursed in Q2 FY 16-17 increased by 50% compared to Q2 FY 15-16 reaching to Rs 18,995 Cr

· Total number of loans disbursed by MFIs grew by 20% in Q2 FY 16-17 compared with Q2 FY 15-16

· Portfolio at Risk (PAR) figures remained under 1% for Q2 FY 16-17

· Average loan amount disbursed per account is now Rs 21,469. The figure for Q2 FY 1516 was Rs 17,161

· MFIs now cover 30 states/union territories

· In terms of regional distribution (for glp), south is 31%, east at 16%, north at 28% and west at 25%

About Microfinance Institutions Network

Microfinance Institutions Network (MFIN) is the premier industry association and Self-Regulatory Organisation (SRO) for the microfinance industry in India and its current membership/associates consists of 53 leading NBFC (Non-banking Financial Company) Microfinance Institutions (MFIs) in the country. The aggregate business of MFIN members constitutes over 90 per cent of the Indian microfinance industry (excluding SHGs). MFIN seeks to work closely with regulators and other key stakeholders to achieve larger financial inclusions goals through microfinance.

MFIN honored at 4th Edition Financial Inclusion Awards

Chandigarh, 25th October 2016: Microfinance Institutions Network (MFIN), a premiere industry association and self regulatory organisation for microfinance industry, was felicitated with the prestigious CNBC TV 18 Financial Inclusion Awards for Institutions & Philanthropic Trusts for Evangelizing Financial Inclusion to Empower Women. The award was presented for MFIN's pioneering contribution in microfinance industry and helping Indian women at grassroots level through bringing them in the ambit of financial inclusion.

Speaking about the honour Ratna Vishwanathan, CEO, MFIN said, "This is not only the recognition for MFIN but for the entire microfinance industry. It is a measure of recognition of the good work that has been done over the past many years by encouraging entrepreneurship amongst rural women and helping them at grassroots level to start their small businesses. Helping these women to be financially independent will not only help improve their financial well being but also their social status. We look forward to another year where we will continue to strive for excellence”.

Microfinance industry has been responsible for delivering the financial services to low income households at affordable costs and played a major role in encouraging entrepreneurship amongst rural women to establish their own small business for the healthy living in the society.

The ceremony witnessed the gathering of members from the entire banking and finance industry. Mr Ashok Lavasa, Finance Secretary, Ministry of Finance presided over the grand event as the Hon’ble Chief Guest and handed over the award to Ms Vishwanathan at a gleaming ceremony. This was the fourth edition of CNBC TV18's Financial Inclusion Agenda event and the awards.

About Microfinance Institutions Network

Microfinance Institutions Network (MFIN) is the premier industry association and Self-Regulatory Organisation (SRO) for the microfinance industry in India and its current membership consists of 53 leading NBFC (Non-banking Financial Company) Microfinance Institutions (MFIs) in the country. The aggregate business of MFIN members constitutes over 85 per cent of the Indian microfinance industry (excluding SHGs). MFIN seeks to work closely with regulators and other key stakeholders to achieve larger financial inclusions goals through microfinance.

MFIN appoints R Baskar Babu as new President

· Mr R Baskar Babu of Suryoday Micro Finance takes over as the President of MFIN

· Mr Rakesh Dubey of SVCL Creditline is elected as Vice President

Chandigarh, 4 July, 2016: Microfinance Institutions Network (MFIN),the premier industry association and Self-Regulatory Organization (SRO) for the microfinance industry in India has announced Mr R Baskar Babu, CEO of Suryoday Micro Finance as its new President of the Board in the wake of the previous President retiring. He replaces Mr Manoj Nambiar of Arohan. The Board also elected Mr Rakesh Dubey, CEO of SVCL CreditlinePvt Ltd. as MFIN’s new Vice President.

Speaking on his appointment as the President of MFIN Mr R Baskar Babu said,“I am happy to be entrusted with this responsibility in this important phase of the rapidly changing Financial Inclusion landscape. These are interesting times with many interesting and positive changes happening at the same time. As before, MFIN will continue to strive in bringing about a focused and sustained efforts among players in the Financial Inclusion space in strengthening the sector to positively impact our clients, our primary stakeholders”

Sharing his sentiments on being appointed as Vice President of MFIN Mr Rakesh Dubey said, “As a part of Governing Board of MFIN, I shall try to use my expertise for promoting financial inclusion and in contributing towards the robust development of the microfinance sector. I am committed towards working on encouraging the industry to adopt measures for responsible lending, client protection and policy advocacy for betterment of MFIs. Additionally, we will try to create more employment opportunities that help to raise the living standards of the lower income group and eventually build a global network of sustainable and scalable social enterprises.”

The newly appointed President, Mr R Baskar Babu, has 22 years of experience in financial services and banking and has earlier worked with First Leasing, Cholamandalam, HDFC Bank and GE Capital in various leadership positions. Mr Rakesh Dubey has more than 18 years of experience in the micro finance domain and has an expertise of setting up domestic as well as international microfinance institutions. Prior to joining the SVCL team, Mr Dubey had also been involved in the inception of SONATA Finance Pvt. Limited and Cashpor Micro Credit.

The MFIN Board has also inducted Mr Dibyajyoti Pattnaik, CEO, Annapurna Microfinance Ltd as the new member of the governing board. He comes in the wake of Mr K Paul Thomas of ESAF Microfinance and Investment retiring from the board after serving his full term.

Currently, MFIN governing board has 11 members (7 elected members and 4 Independent) and supports the broad goals of the organisation by providing overall direction to its activities for ensuring the healthy development of the NBFC-MFI industry. MFIN has been at the forefront of transforming the regulated microfinance industry and is responsible for bringing in transparency and regulation in the sector while safeguarding the best interests of MFI beneficiaries as well as the companies.

MFIN honoured with ET Best BFSI Brands 2016 award

Chandigarh, 21st June 2016: Microfinance Institutions Network (MFIN), the premier industry association and Self-Regulatory Organization (SRO) for the microfinance industry in India has been honored with The Economic Times-Best BFSI Brands 2016 award for its pioneering contribution in microfinance industry. The awards honor companies in banking and financial services industry for their initiatives and innovative practices in the sector.

Speaking about the honour Ratna Vishwanathan, CEO, MFIN said, “This is recognition for the entire industry as MFIN is a representative of industry and this is a measure of recognition of the good work that has been done over the past many years post the crisis. As an industry we have been striving hard to better systems and processes, started communicating in a more engaged and focused manner with external stakeholders and demonstrated that an SRO funded by industry can be effective. The Board has played a very important role by providing steer in driving this process. We look forward to another year where we will continue to strive for excellence”.

The ceremony witnessed the gathering of members from the entire banking and finance industry. The awards were announced under six different categories including banking, asset management, broking, life insurance, general insurance and microfinance. The chief guest for the event was Amitabh Kant, CEO Niti Aayog. The felicitation was done by Mr. Kant and the Honorable Deputy Chief Minister of Delhi Mr. Manish Sisodia.

Non-banking financial company - micro finance institutions (NBFC-MFIs) have continuously worked towards ensuring access to easy finance to the needy customer in a responsible and inclusive way. Microfinance Institutions Network (MFIN), the premier industry association and Self-Regulatory Organisation (SRO) for the microfinance industry in India works towards ensuring fulfilling of these twin responsibilities of client protection and responsible lending by its member NBFC-MFIs.

About Microfinance Institutions Network

Microfinance Institutions Network (MFIN) is the premier industry association and Self-Regulatory Organisation (SRO) for the microfinance industry in India and its current membership consists of 47 leading NBFC (Non-banking Financial Company) Microfinance Institutions (MFIs) in the country. The aggregate business of MFIN members constitutes over 85 per cent of the Indian microfinance industry (excluding SHGs). MFIN seeks to work closely with regulators and other key stakeholders to achieve larger financial inclusions goals through microfinance.