Microfinance Industry poised for growth with disbursements increasing 11% Y-o-Y for the quarter ending Sept’22: Equifax-SIDBI study

July 10, 2023

MUMBAI, April 04, 2023: 
The 15th edition of “Microfinance Pulse”, a quarterly publication by Small Industries Development Bank of India (SIDBI) and Equifax India revealed that the disbursements by value witnessed annual growth of 11% JAS’21 to JAS’22. Not for Profit MFIs witnessed highest growth in terms of disbursement amount and in terms of number of loan disbursed, NBFCs are leading by 63% from JAS’21 to JAS’22. Highest number of loans are issued under 30k-40k ticket size category and it witnessed annual growth of 13% from JAS’21 to JAS’22.
The outstanding portfolio of Microfinance Industry was ~ INR 2,71,350 crore as of Sept. 2022. Moreover, 90+ days past due delinquency also decreased by 68 bps Y-o-Y in September 2022 from September 2021. As on 30th September 2022, top 10 districts contribute 9% towards total portfolio outstanding of microfinance industry. Bihar, Tamil Nadu, West Bengal, Uttar Pradesh, Karnataka are top 5 states. 
On the launch, Shri KM Nanaiah, Managing Director, Equifax Credit Information services Pvt. Ltd. and Country Leader, Equifax India and MEA said, “Withstanding Covid-19 impact with tremendous grit, Micro Finance Industry has been an enabler in promoting the financial inclusion agenda and fostering economic and social development in the country. We are certain that the 15th edition of Microfinance Pulse report in collaboration with SIDBI will provide valuable insights on the emerging trends in the Microfinance industry”.
On the launch, Shri Sivasubramanian Ramann, Chairman & Managing Director, SIDBI said, “Microfinance Industry is pivotal in delivery of essential financial services, particularly credit services, to the unbanked / underbanked small entrepreneurs. The industry has been at the centre for developing financial discipline amongst rural / semi-urban population, thus furthering the agenda of Financial Inclusion. With every edition of the MFI Pulse, in collaboration with Equifax, SIDBI aims to highlight the key trends of the industry for various stakeholders and policy makers”.
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.

At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 14,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.com. 

Since its formation in 1990, SIDBI has been impacting the lives of citizens across various strata of the society through its integrated, innovative and inclusive approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly touched the lives of Micro, Small and Medium Enterprises (MSMEs) through various credit and developmental engagements. SIDBI 2.0 carries the vision of inclusive, innovative and impact-oriented engagements.  

To know more, check out: https://www.sidbi.in