Microfinance lenders clocked a 24 per cent growth in the April-June quarter even as the industry implemented the new RBI regulations for the sector during the quarter.
The combined portfolio of lenders as of June 30 was at Rs 2,75,750 crore against Rs 2,22,307 crore a year ago, according to data compiled by industry body Sa-Dhan.
Barring banks, the portfolio of all lenders recorded double-digit growth. NBFCs have shown a growth of 54.62 per cent. NBFC-MFIs, SFBs and not-for-profit MFIs have recorded a growth of 35.18 per cent, 27.66 per cent and 20.71 per cent, respectively.
Total disbursement of all lenders during Q1FY23 is Rs 57,842 crore against Rs 27,328 crore a year ago. However, it is down 35 per cent compared with the previous quarter as lenders were fine-tuning their disbursement policy under the new regulations.
“The sector has overcome the difficulties of the pandemic and is now back on track. Although it was busy implementing the new RBI regulations during Q1, it has clocked a healthy growth. Though funds flow to the sector has improved, but still, some smaller MFIs find it difficult in accessing funds from banks. We are working towards removing this gap,” said Jiji Mammen, ED and CEO, Sa-Dhan.