The second wave of the Covid pandemic and the lockdown that followed impacted the growth of the microfinance industry during the April-June quarter of the current fiscal year. Microfinance lender gross loan portfolio growth declined 6.98% quarter-on-quarter (QoQ) from 2,53,800 crore rupees in the March quarter of fiscal year 21 to 2,36,100 crore in fiscal year 21. Rs in the April to June quarter of fiscal 22, according to CRIF High Mark, a credit bureau.
Year-over-year (year-over-year) growth was less than 1% compared to Rs 2,34,100 crore last year. The June quarter was also marked by a sharp drop in quarter-over-quarter disbursements as well as high delinquencies.
CRIF said Rs 23,700 crore was disbursed in the June quarter of FY22, down 73% from Rs 88,500 crore in the March quarter of FY21, while Disbursements increased by 273.4% from Rs 6,372 crore. The average note size also decreased by 7.4% from Rs 38,900 in the fourth quarter of FY21 to Rs 36,000 in the quarter of June of fiscal 22, with a maximum decrease of 11.7% recorded in the size of the banknotes from Rs 20,000 to Rs 30,000, followed by a contraction of 10.5%. in the range of Rs 30,000 to Rs 40,000, he said.
Loans of over 60,000 rupees have fallen by only 2.5 percent. Even in terms of year-over-year performance, the average note size only managed to improve by 0.9%, with the highest growth of 56.6% seen in the loans of less than 10,000 rupees.
According to CRIF, in terms of defaults, the portfolio at risk (PAR) or the proportion of the portfolio 31 to 180 days past due (30+ DPD), calculated as a percentage of the total portfolio outstanding, was 15.4% in June 2021, higher than 9.7% in March 2021 for all note sizes and all types of lenders.
