About 12% of the general microfinance loans of Rs 2.76 lakh crore have remained non-performing property (NPA) on the finish of June regardless of enchancment in general compensation assortment, microfinance trade physique Sa-Dhan mentioned.
This interprets into Rs 33,000 crore of NPA.
“Recovery has improved compared to the previous quarter and reached almost 99% in some states. However, there are still certain geographies where collection is below the normal. For example, the collection efficiency in Assam stands at 50-55%,” Sa-Dhan mentioned in its quarterly report.
Assam, West Bengal, Kerala, Tripura, and Chhattisgarh are among the many main states which have proven under common restoration and are a drag on the general asset high quality.
The general sectoral NPA is round 12% as of the tip of June 2022, however NBFC-MFIs as a gaggle have 9% of their Rs 9,7849 crore portfolio as NPA.
The sector has grown 24% year-on-year to Rs 2.76 lakh crore on the finish of June from Rs 2.22 lakh crore.
“The sector has overcome the difficulties of pandemic and is now on track. Although it was busy in implementing the new RBI regulations during Q1, it has clocked a healthy growth,” Sa-Dhan executive director Jiji Mammen said.
“Though funds flow to the sector has improved, but still some smaller MFIs find it difficult in accessing funds from banks. We are working towards removing this gap,” he mentioned.
Portfolio of all lenders recorded double digit progress, apart from banks. Non-bank lenders have proven 55% bounce in mortgage excellent adopted by NBFC-MFIs, small finance banks and not-for-profit MFIs which have recorded 35%, 28% and 21% progress respectively.