The second wave of Covid pandemic and the following lockdown impacted the microfinance sector’s progress within the April-June quarter of the present monetary 12 months. The progress within the gross mortgage portfolio of microfinance lenders declined by 6.98 per cent quarter-on-quarter (QoQ) from Rs 2,53,800 crore in March quarter of FY21 to Rs 2,36,100 crore within the April-June quarter of FY22, in accordance with CRIF High Mark, a credit score bureau.
The year-on-year (YoY) progress was lower than one per cent from Rs 2,34,100 crore final 12 months. The June quarter additionally witnessed a steep quarter-on-quarter decline in disbursements together with excessive delinquencies.
CRIF stated Rs 23,700 crore was disbursed within the June quarter of FY22, down 73 per cent from Rs 88,500 crore within the March quarter of FY21 whereas disbursements grew 273.4 per cent from Rs 6,372 crore. The common ticket dimension additionally declined by 7.4 per cent from Rs 38,900 within the fourth quarter of FY21 to Rs 36,000 within the June quarter of FY22, with most degrowth of 11.7 per cent recorded in Rs 20,000-30,000 ticket dimension adopted by 10.5 per cent contraction in Rs 30,000-40,000 bracket, it stated.
Loans over Rs 60,000 declined by solely 2.5 per cent. Even by way of year-on-year efficiency, the typical ticket dimension managed to enhance by solely 0.9 per cent with the very best progress of 56.6 per cent witnessed within the lower than Rs 10,000-loan bracket.
According to CRIF, by way of delinquencies, portfolio in danger (PAR) or proportion of portfolio delinquent by 31-180 days overdue (30+ DPD), calculated as a proportion of whole portfolio excellent, was 15.4 per cent in June 2021, larger in comparison with 9.7 per cent in March 2021 for all ticket sizes and all lender sorts.
