The microfinance industry, comprising non-banking microfinance companies (NBFC-MFIs), banks, non-bank financial companies (NBFC), small finance banks and non-profit MFIs, has seen a 51 per cent growth in gross loan portfolio for the second quarter of 2018-19 with an improvement in the asset quality.

The loan amount outstanding for the quarter ended September 30, 2018, was Rs 1,46,741 crore against Rs 96,995 crore in the corresponding period of the previous year.

NBFC MFIs hold the largest share at 37 per cent of the total micro credit portfolio with total loan outstanding at Rs 54,018 crore at the end of the quarter.

While banks have a 33 per cent share, small finance banks have 17 per cent, NBFCs’ share is 12 per cent and non-profit MFIs account for 1 per cent of the loan outstanding.

The asset quality, measured by portfolio at risk, has improved to 0.99 per cent for the quarter ended September 30, 2018, from 1.06 per cent for the quarter ended June 30. It was more than 4 per cent in the corresponding second quarter of the previous year.

“We have seen a healthy improvement in the quality of the portfolio since last one year which is a very encouraging sign for the industry. The growth for the overall industry, including NBFC-MFIs, has shown a good pace which we expect will be maintained in the coming quarters too,” said Harsh Shrivastava, CEO, of the Microfinance Institutions Network (MFIN).

“We continue to see robust investors’ confidence, especially in the NBFC-MFI segment, due to sustained credit discipline,” Shrivastava added.