i nc lu s i ve f i nanc e i nd i a re port 2014
106
crisis not halted the growth of MFIs in the state three
years back, it would have surely gone way ahead of others
in disbursing loans through MFIs. Four states—Andhra
Pradesh, Tamil Nadu, West Bengal, and Karnataka—
account for half of the microfinance loan disbursements
and outstanding as per the credit bureau data. The data
indicates that some of the larger and poorer states like
Uttar Pradesh, Bihar and Madhya Pradesh are still to be
covered widely by MFIs.
As for the NBFC-MFIs Kerala, Uttarakhand and
Gujarat have witnessed the highest growth rates in GLP
(ranging from 60 to 75 per cent), followed by Assam,
Haryana, Uttar Pradesh, Madhya Pradesh, and Bihar
(50–50 per cent). Their portfolio continues to shrink
in Andhra Pradesh. In Karnataka, West Bengal and
Rajasthan the MFI portfolio grew by around 28–31
per cent (Table 4.20).
4.12 FLOW OF FUNDS TO MFIs
What has been the contribution of mainstream banks
to the growth of MFIs? As per the data published by
NABARD (2014) all banks along with SIDBI disbursed
Rs. 102.82 billion to MFIs in 2013–14, Rs. 24 billion
more than what they deployed in 2012–13 (Table 4.21).
With this, the loan outstanding against MFIs rose from
Rs. 144 billion to Rs. 165 billion over the two years.
The scheduled commercial banks are almost the singular
sources of credit for microfinance institutions, if one
keeps SIDBI aside as a development finance institution.
Public sector banks account for about 55 per cent of MFI
lending and private sector banks, 36 per cent during
2013–14 (Figures 4.11 and 4.12).
A substantial share of the bank credit flows in to the
NBFC-MFIs. According to MFIN data, total debt fund
received by its members rose from Rs. 101.15 billion to
Rs.150 billion over 2012–14. Bank loans constitute 79
per cent of this (MFIN, 2014).
4.12.1 Alternative Sources
The need for alternative funding by fast growing MFIs has
been long acknowledged. The regulator has been sensitive
to the issue of capital constraints faced by MFIs and has
T
ABLE
4.20
NBFC-MFIs—Spatial Distribution
State
NBFC-MFI
GLP (Rs. billion)
Clients (million)
2012–13
2013–14
2012–13
2013–14
% Change 2012–13
2013–14
% Change
West Bengal
11
12
30.09
38.85
29.11
3.59
3.89
8.36
Tamil Nadu
20
20
27.6
38.25
38.59
3.35
3.89
16.12
Andhra Pradesh
9
8
39.86
33.16
–16.81
4.19
3.4
–18.85
Karnataka
15
18
20.5
26.21
27.85
2.13
2.49
16.90
Maharashtra
19
22
17.22
24.70
43.44
1.94
2.44
25.77
Uttar Pradesh
14
15
12.89
19.96
54.85
1.47
1.84
25.17
Bihar
14
17
9.92
15.56
56.85
1.28
1.73
35.16
Madhya Pradesh
17
21
9.78
15.20
55.42
1.24
1.73
39.52
Assam
5
6
7.3
11.13
52.47
0.67
0.88
31.34
Odisha
10
11
7.78
10.98
41.13
1.17
1.47
25.64
Kerala
6
7
6.44
10.31
60.09
0.63
0.9
42.86
Gujarat
15
18
4.67
8.13
74.09
0.51
0.78
52.94
Rajasthan
11
14
4.53
5.95
31.35
0.57
0.65
14.04
Jharkhand
8
10
2.51
3.36
33.86
0.36
0.44
22.22
Chhattisgarh
7
8
2.91
3.27
12.37
0.37
0.36
–2.70
Delhi
7
9
2.13
2.98
39.91
0.16
0.21
31.25
Uttarakhand
10
10
1.53
2.51
64.05
0.16
0.24
50.00
Haryana
8
9
1.39
2.12
52.52
0.16
0.2
25.00
Pondicherry
6
6
0.51
0.69
35.29
0.06
0.07
16.67
All
212
241
209.56
273.32
30.43
24.01
27.61
14.99
Source
: MFIN (2014).
