i nc lu s i ve f i nanc e i nd i a re port 2014
102
2011–14. Apart from analysing the major characteristics
of the contemporary phase of evolution of the MFI
sector, the discussion also presents the highlights of the
recent discourses around the specific role of MFIs in
financial inclusion. Finally, the chapter will try to draw
some implication for policy and practice
.
4.10 MARKET SIZE AND STRUCTURE
It is heartening to note that the data gathering and report-
ing systems around Indian MFIs have improved steadily
and substantially since 2010–11. With the convergence
of the data collection and reporting methodologies of
MFIN and Microfinance Information Exchange (MIX),
the information base on NBFC-MFIs has come to be
streamlined and standardized. However, getting access to
consistent and comparable data on the non-profit MFI
segment is still a daunting task. With MFIN assuming
the role of the self-regulatory organization with the over-
all charge of ensuring orderly conduct of microfinance
sector, an appropriate arrangement to capture NGO-
MFI data regularly and accurately may evolve.
Though the primary purpose of credit bureaus is to
improve industry performance and protect customer
interests, they generate in the process rich and detailed
information which is otherwise difficult to compile. In
estimating the size and analysing the structure of the
MFI sector in this section the data compiled by Equifax
Credit Information Services Private Limited is used
along with MFIN and MIX data with a view to provide a
comparative perspective. Equifax has a client base about
120 MFIs (including banks with JLG lending business
units), whereas Microfinance Institutions Network
(MFIN),
the industry association of NBFC-MFIs and
the RBI-designated self-regulatory organization for the
microfinance industry, has a current membership of 48
NBFC-MFIs.
Table 4.15 based on credit bureau data shows that
up to April 2014 all the MFIs reporting to Equifax
have cumulatively issued 12.7 million loans worth
Rs. 1,508.61 billion. The outstanding amount of all
loans reported to the credit bureau as on April 2014
stands at Rs. 349.69 billion. Large MFIs with more than
Rs. 5 billion portfolio accounted for 80 per cent of this
amount. Cumulatively 68.4 million customers have been
provided microfinance till 2013–14.
Going by the data published by MFIN pertaining to
42 of its NBFCmembers, the amount of loan outstanding
for the year 2013–14 was Rs. 280 billion crore—the same
as what Equifax reported for its Category 1 MFIs—with a
client base of 28 million. For these MFIs (excepting those
under corporate debt restructuring or CDR
18
) the growth
rates of all parameters have improved quite significantly
in 2013–14 compared to the previous year (Table 4.16).
The gross loan portfolio registered 35 per cent growth
rate, while the number of clients rose by 20 per cent
during the period. The disbursal of fresh loans went up
by 48 per cent in March 2014 indicating the enhanced
ability of MFIs to access funds for onlending during the
year. Though still below the 2011–12 level, employment
figures too picked up after 2012–13, whereas the number
of branches reached its level in 2011–12.
T
ABLE
4.15
Portfolio Size and Structural Composition of MFIs (April 2014)
Indicators
All MFIs
Category 1
Category 2
Category 3
Category 4
(GLP > 5 bn)
(GLP 1–5 bn)
(GLP < 1 bn)
(Banks with
JLG lending)
No. of loans issued (cumulative) (mn)
127.05
107.77
12.16
6.09
1.04
Amount disbursed (cumulative) (Rs. bn)
1,508.61
1,264.39
163.01
66.09
15.12
% share
100
83.81
10.81
4.38
1.00
Amount outstanding (all loans) (Rs. bn)
349.69
280.50
47.78
12.37
9.05
% share
100
80.21
13.66
3.54
2.59
No. of consumers (cumulative) (mn)
68.43
55.38
8.44
3.76
0.86
% share
100
80.99
12.28
5.56
1.17
Source
: Equifax records.
