A report released by the Micro Finance Institutions Network (MFIN) shows the gross loan portfolio of microfinance institutions (MFIs) expanded 23 per cent in 2012-13.
Industry players cheer the strong growth in 2012-13 as the sector witnessed negative 14 per cent growth in last year. These firms registered a 21 per cent increase in client base outside Andhra Pradesh.
But the interesting point in the report is that, the growth of gross loan portfolio of non-Andhra Pradesh micro credit firms was 39 per cent compared to just 7 per cent increase achieved by AP-based MFIs.
MFIs registered a 21 per cent increase in client base outside Andhra Pradesh during 2012-13. The study was based on the data collected from 41 non-banking finance companies- microfinance institutions (NBFC-MFI), who are members of MFIN and represent 85 per cent of the microfinance business in the country, excluding self-help groups (SHGs).
Industry players want the government to pass the Microfinance Bill as it would provide an overarching regulatory framework for the sector. NBFC-MFIs are said to be playing a key role in promoting financial inclusion and the proposed bill could promote growth in the sector.
During the last financial year, there was a significant increase in lending in states such as West Bengal, Tamil Nadu, Kerala, Bihar, Assam and Uttar Pradesh, the release said. Tamil Nadu has the largest number of MFIs operating in the state followed by Maharashtra, Madhya Pradesh, Gujarat, Karnataka, Bihar and Uttar Pradesh.