Banking News

nbfc: Non-bank lenders surpassed banks in microlending segment in September 2022: Report

Non-bank lenders have surpassed banks in the microlending segment by assets, as per data for September 2022 disclosed by a credit information company on Tuesday. Non-banking finance companies-microfinance institutions (NBFC-MFIs) accounted for 35.1 per cent of the outstanding loans as of September 2022, surpassing banks which held a 34.8 per cent stake, the report by Crif High Mark said.

The NBFC-MFIs’ market share stood at 34.1 per cent in preceding June quarter as against 35.6 per cent for banks, while in the year-ago period, it stood at 32.2 per cent as against banks’ 40.7 per cent.

The NBFC-MFI segment recorded a 32.2 per cent growth on a year-on-year basis as against 4.1 per cent for banks, the report said.

The NBFC-MFIs have a larger contribution to the society as nearly 47 per cent of their loans are in the smaller ticket sizes of between Rs 30-50,000 while the same for banks was 35.9 per cent, the report said.

For the microlending sector as a whole, portfolio of ticket size of less than Rs 15,000 witnessed a decline of 3.4 per cent as compared to the figure for September 2021, and was 9.3 per cent down as compared to June 2022.

Share of portfolio of higher ticket sized loans of over Rs 50,000 increased from 30.7 per cent in September 2021 to 35 per cent in September 2022.

On the asset quality front, where there were severe setbacks in the year-ago period due to the second wave of Covid, there were some mixed developments in the microlending industry, it said. Loans unpaid for over 30 days improved from 5.8 per cent as of June 2022 to 5.4 per cent in September 2022, but the ones unpaid for over 90 days increased from 2.2 per cent to 2.7 per cent.

The overall portfolio outstanding of the microfinance sector grew 21.5 per cent to Rs 3 lakh crore as of September 2022 as compared to the year-ago period.

Source link