The average balance per borrower inched up to Rs 48,900 during the December quarter, as against Rs 48,200 in the quarter-ago period and Rs 46,900 in the year-ago period, the data said. A bulk 83.4 per cent of the borrowers had exposure to less than 2 lenders in December, with Tamil Nadu having the highest prevalence of multiple borrowings per borrower, it said.
AU Small Finance Bank, which has remained a western regional player, is set to expand into South as it is confident of replicating its model amid strong demand for credit, said managing director Sanjay Agarwal in an interview. Here's an edited excerpt:
According to a recent report, the microfinance sector witnessed a positive growth of about 6.9 per cent qoq and 26.6 per cent yoy, mainly led by NBFCs and followed by Banks. Here's what the report highlights :
The growth and consistent performance of the sector are a big affirmation of the character of the microfinance borrowers. Their right intent of borrowing, intent to ensure proper repayments combined with resilience in the face of large macro events for the last three decades comes far ahead of all other asset classes time and again.
We are very granular on both sides of the balance sheet, whether we talk of assets or liabilities. We are almost 100% secured book with zero direct microfinance exposure. At present, the more branches are in Punjab, but as I mentioned earlier, originally we were in only five districts and total Punjab has 22 districts. So, after our conversion, it was meaningful for us to spread all over Punjab.
Prior to joining Bajaj Finserv, Sharma was associated with Jio as Vice President - Human Resources. Previously, he worked at Bajaj Housing Finance, Telenor India, Bharti Infratel, ING Vysya Life Insurance, ICICI Prudential Life Insurance, Rajasthan Patrika. He also served the Indian Army as Company Commander for more than six years (Sep 1999 - Sep 2005).
The collaboration between banks and digital solutions providers, facilitated by the synergy of AI, ML, and other technologies, has permeated the lending domain. This collaboration spans the entire lifecycle of a loan, from customer application to onboarding, approval, credit disbursement, and management to collection and recovery. Read on to know more:
The microfinance sector in India today is growing rapidly, allowing small borrowers access to formal credit. This is fostering greater financial inclusion. According to a recent report, disbursements by MFIs grew a whopping 28 per cent in FY24. Additionally, the total loans managed by MFIs comprising own account loans and managed portfolio increased by 12 per cent.
IIFL Finance, which holds 99% in the microfinance lender, has decided to infuse Rs 200 crore by way of rights issue of 7.5 crore fully paid up equity shares of face value of Rs 10 each at a premium of Rs 16.74 per share. It acquired Samasta in 2017. In the first half of FY24, the NBFC-MFI raised Rs 5,239 crore of debt with about 60% as term loans and another 20% from privately placed bonds.
RBI needs to review the whole digital market dynamics, identify the overlap with microfinance and in such cases enforce microfinance regulation on them, says MFIN in its India Microfinance Review.
According to a recent report, the microfinance sector witnessed a positive growth of about 5.2 per cent Qoq and 24.3 per cent yoy, mainly led by NBFCs and followed by Banks. Here's what the report highlights :
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