MICROFINANCE PAPER WRAP-UP: “2012 MicroMeter;” published by India’s Microfinance Institutions Network (MFIN)

Published by the Microfinance Institutions Network (MFIN); 2013; 40 pages; available at: http://www.microfinancegateway.org/gm/document-1.9.60963/MicroMeter_Feb%202013_Issue%2004_5th%20Feb%202013_for%20distribution.pdf

The Microfinance Institutions Network (MFIN), an association of 47 Indian microlenders, has released the fourth issue of MicroMeter, an analysis of the Indian microfinance industry’s performance during the third quarter (Q3) of fiscal year (FY) 2012-2013 (spanning October to December 2012). This analysis is based on data collected from 41 MFIN members.

The report indicates that 75 percent of MFIN members enjoyed an increase in gross loan portfolio (GLP) during Q3 of FY 2012-2013 compared to Q3 of FY 2011-2012 and the second quarter (Q2) of FY 2012-2013. Of the 32 microfinance institutions (MFIs) studied that are not based in the Indian state of Andhra Pradesh (AP), 24 showed growth in GLP during Q3 of 2012-2013. For the first time since the crisis that began in AP in October 2010, the average AP MFI showed growth in GLP. The nine AP MFIs included were Asmitha Microfin Limited, Bhartiya Samruddhi Finance Limited, Future Financial Services Limited, L&T Finance Holding, Share Microfin Limited, SKS Microfinance Limited, Spandana Foundation, Sharada’s Women’s Association for Weaker Section Credit Corporation India Private Limited and Trident Microfin Private Limited.

Across all MFIs considered, the total amount of disbursements increased during Q3 of FY 2012-2013 by 28 percent over the amount disbursed during Q3 of FY 2011-2012. Non-AP MFIs accounted for roughly 70 percent of total disbursements during Q3 of FY 2012-2013. Portfolio at risk (PAR) rates also improved for Indian MFIs across the board. The rates of portfolios at risk for more than 30 days (PAR30) for AP MFIs decreased to 42 percent in Q3 of FY 2012-2013 from 47 percent in Q3 of FY 2011-2012. Across all MFIs, PAR30 decreased to 20 percent in Q3 of FY 2012-2013 from 26 percent in Q3 of FY 2011-2012. According to the report, the rates of portfolio at risk for more than 90 days (PAR90) and 180 days (PAR180) remain at 1 percent for non-AP MFIs. For AP MFIs, PAR90 and PAR180 remain above 40 percent.

The number of branches operated by the MFIs considered declined from 10,217 in Q3 of FY 2011-2012 to 9,198 branches in Q3 of FY 2012-2013. The report cites continuing struggles in AP as the reason for this decline, which was mirrored in a drop in the number of MFI employees. Stagnation in AP has prompted many non-AP MFIs to write off AP-based portfolios and loans, which has led to an overall reduction in net owned funds. The industry has primarily experienced its growth in states such as West Bengal, Tamil Nadu, Kerala, Bihar and Uttar Pradesh.

By Makai McClintock, Research Associate

Sources and Additional Resources

“2012 MicroMeter;” published by Microfinance Institutions Network (MFIN); 2013; 40 pages; available at: http://www.microfinancegateway.org/gm/document-1.9.60963/MicroMeter_Feb%202013_Issue%2004_5th%20Feb%202013_for%20distribution.pdf

MicroCapital.org story: “MICROCAPITAL BRIEF: Reserve Bank of India (RBI) May Consider Raising Margin Cap on Microloans if MFIs Relinquish Priority-Sector Status”; published February 25th, 2013; https://www.microcapital.org/microcapital-brief-reserve-bank-of-india-rbi-may-consider-raising-margin-cap-on-microloans-if-mfis-relinquish-priority-sector-status/

MicroCapital.org story: “MICROCAPITAL BRIEF: Microlenders Affiliated with India’s Microfinance Institutions Network Boost Loan Disbursals by 22%, Gross Loan Portfolio by 9.2% from Previous Quarter”; published February 25th, 2013; https://www.microcapital.org/microcapital-brief-microlenders-affiliated-with-indias-microfinance-institutions-network-boost-loan-disbursals-by-22-gross-loan-portfolio-by-9-2-from-previous-quarter/

MicroCapital.org story: “MICROCAPITAL BRIEF: Microfinance institutions (MFIs) in India’s Andhra Pradesh Face Difficulties Even After Loan Restructuring, “Survival of MFIs” Said to Hang on Court Decision Regarding State Law”; published February 12th, 2013; https://www.microcapital.org/microcapital-brief-microfinance-institutions-mfis-in-indias-andhra-pradesh-face-difficulties-even-after-loan-restructuring-survival-of-mfis-said-to-hang-on-court-decision-regar/

MicroCapital.org story: “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Commits Technical Assistance To Indian Credit Bureau, High Mark”; published November 6th, 2012; https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-commits-technical-assistance-to-indian-credit-bureau-high-mark/

MicroCapital.org story: “MICROCAPITAL BRIEF: MFTransparency Partners with Planet Rating, Microfinance Institutions Network (MFIN) of India to Improve Pricing Transparency”; published August 15th, 2012; https://www.microcapital.org/microcapital-brief-mftransparency-partners-with-planet-rating-microfinance-institutions-network-mfin-of-india-to-improve-pricing-transparency/

MicroCapital.org story: “MICROCAPITAL BRIEF: Microfinance Institutions Network (MFIN) Asks Reserve Bank of India (RBI) to Assist in Recovering Loans Outstanding in Andhra Pradesh”; published April 16th, 2012; https://www.microcapital.org/microcapital-brief-microfinance-institutions-network-mfin-asks-reserve-bank-of-india-rbi-to-assist-in-recovering-loans-outstanding-in-andhra-pradesh/

MicroCapital Universe Profile: Trident Microfin Private Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Trident+Microfin+Private+Limited

MicroCapital Universe Profile: Spandana Foundation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Spandana+Foundation

MicroCapital Universe Profile: SKS Microfinance
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance

MicroCapital Universe Profile: Share Microfin Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SHARE+Microfin+Limited

MicroCapital Universe Profile: Microfinance Institutions Network (MFIN)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Institutions+Network+%28MFIN%29

MicroCapital Universe Profile: International Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: Sharada’s Women’s Association for Weaker Section (SWAWS) Credit Corporation India Private Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sharada%E2%80%99s+Women%E2%80%99s+Association+for+Weaker+Section+%28SWAWS%29+Credit+Corporation+India+Private+Limited

MicroCapital Universe Profile: Asmitha Microfin Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asmitha+Microfin+Limited

MicroCapital Universe Profile: The World Bank Group
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group

MicroCapital Universe Profile: Bhartiya Samruddhi Finance Limited (BSFL)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bhartiya+Samruddhi+Finance+Ltd+%28BSFL%29

MicroCapital Universe Profile: Future Financial Services Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Future+Financial+Services+Limited

MicroCapital Universe Profile: L&T Finance Holding
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=L%26T+Finance+Holding

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