MICROFINANCE

PULSE REPORT
VOL XX – AUGUST 2024
 Analytical Contacts

Equifax SIDBI

Kiran Samudrala Y Venugopal Rao Divik Sahni

Head – Data Analytics Vertical Head AGM-ERDAV
[email protected] [email protected] [email protected]

Shruti Joshi Chand Kureel Samir Mallick

Head – Insights & Analytics GM-ERDAV AGM-ERDAV
[email protected] [email protected] [email protected]

Vandana Panchal Soham Nag

Manager – Insights & Analytics AGM-ERDAV
[email protected] [email protected]

Ashwini Ingale Manasi Swamy

Senior Data Scientist – Insights & Analytics Economic Advisor,
[email protected] [email protected]
Index

01 Executive Summary 04 Disbursement Trends

02 Abbreviations &
Glossary 05 Industry Risk Profile

03 MicroFinance
Industry Overview 06 Aspirational Districts
 Executive Summary

20th edition of MFI Pulse Report presents the snapshot of the data submitted for the period up to March 2024 and
developments in the MicroFinance industry during the fiscal year 2023-24.

Portfolio outstanding of MicroFinance industry as on 31st March 2024 is `3,77,706 crore with 1,238 lakh active loans and
6.6 crore unique live borrowers. NBFC-MFIs contributes highest towards portfolio outstanding. In terms of portfolio
outstanding, MicroFinance industry witnessed annual growth of 18% and NBFCs witnessed highest growth of 45% in March
2024 over March 2023

MicroFinance industry witnessed quarterly growth of 4% in March 2024 over December 2023 in terms of portfolio outstanding
and 8% of growth in terms of disbursements by value. SFBs witnessed highest growth of 17% in terms of loan disbursal from
OND’23 to JFM’24.

Portfolio outstanding as on 31st March 2024 for Aspirational Districts is `53,483 crore and it grew by 23% in March 2024 over
March 2023. Loans worth `54,292 crore were disbursed in Aspirational Districts from April 2023 to March 2024.

Note: In MFI segment there are ~6.6 crore unique live borrowers across lenders. Difference in the unique number of customers is due to the customers having multiple relationships with SFBs, Banks, NBFC-MFIs, NBFCs and Not for Profit MFIs.
 Abbreviations & Glossary

• ATS (Average Ticket Size) = Disbursed Amount/ • 1-179 = 1 to 179 DPD/Live POS
Number of Loans
• 1-29 = 1 to 29 DPD/Live POS
• DPD = Days Past Due
• 30-59 = 30 to 59 DPD/Live POS
• Live POS or Borrowers or Active loans = 0 to 179 DPD
• 60-89 = 60 to 89 DPD/Live POS
+ New Accounts + Current Accounts
• 90-179 = 90 to 179 DPD/Live POS
• MFI = MicroFinance Institution
• 30+ Delinquency = 30-179 DPD/Live POS
• POS = Portfolio Outstanding
• 90+ Delinquency = 90-179 DPD/Live POS
• UT = Union Territory
• JFM’23 = January 2023 to March 2023
• Aspirational Districts (AD)- Districts (we have covered
117 in no.) identified by NITI Aayog, GoI, in January • AMJ’23 = April 2023 to June 2023
2018, for improvement to enhance Human
• JAS’23 = July 2023 to September 2023
Development Index, in turn, based on composite
indicators like Health & Nutrition, Education, • OND’23 = October 2023 to December 2023
Agriculture & Water Resources, Financial Inclusion, • JFM’24 = January 2024 to March 2024
Skill Development and Basic Infrastructure

Note:
Due to rounding, numbers presented throughout the report may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Portfolio Outstanding for the loans opened after February 2017 is `4,06,314 crore.
MicroFinance Industry
Overview
 MicroFinance Industry Snapshot – as on 31st March 2024�

Active Live Borrowers Active Loans Portfolio Outstanding Disbursed Amount – JFM’24

31% 32% 31% 35%

18% 15% 16% 15%
39% 43% 41% 41%
11% 9% 11% 8%
1% 1% 1% 1%

Banks SFBs NBFC-MFIs NBFCs Not for Profit MFIs

Snapshot as on 31st March 2024 Banks SFBs NBFC-MFIs NBFCs Not for Profit MFIs Total Industry

Active Live Borrowers(‘000) 26,534 15,720 33,589 9,699 173 85,715

Active Loans ('000) 39,831 19,171 53,410 11,244 223 123,879

Portfolio (`crore) 118,568 61,351 155,390 41,869 528 377,706

Disbursed Amount (`crore) – JFM’ 24 37,227 16,322 42,520 8,334 143 104,546

Average Ticket Size (`) – JFM’ 24 49,207 50,127 46,821 55,310 43,789 48,757

30+ Delinquency (POS) 2.45% 2.92% 2.15% 1.45% 3.98% 2.29%

90+ Delinquency (POS) 1.11% 1.26% 1.26% 0.73% 1.79% 1.16%

• Portfolio outstanding of MicroFinance industry as on 31st March 2024 is `3,77,706 • NBFCs have the highest average ticket size.
crore.
• 30+ & 90+ delinquencies are lowest for NBFCs.
• NBFC-MFIs are contributing highest to portfolio outstanding and disbursement
• Not for profit MFIs have the highest 30+ & 90+delinquencies
amount.
Note : In MFI segment there are ~6.6 crore unique live borrowers across lenders difference in the unique number of customers is due to the customers having multiple relationships with SFBs, Banks, NBFC-MFIs, NBFCs and Not for Profit MFIs.
 MicroFinance Industry Overview
Portfolio
Outstanding
Market % Share Trends By Lender Type (`crore)

319,080 330,261 362,702 363,793 377,706

33% 33% 31% 30% 31%

16% 16% 17% 19% 17%

40% 41% 42% 41% 40%

10% 9% 9% 9% 11%

1% 1% 1% 1% 1%

Mar’23 Jun’23 Sep’23 Dec’23 Mar’24

Banks SFBs NBFC-MFIs NBFCs Not for Profit MFIs

Particulars Mar23 Jun23 Sep23 Dec23 Mar24 Y-o-Y Growth % Portfolio

Outstanding
Banks 104,984 102,004 109,459 113,079 118,568 13%
(`crore)
SFBs 52,386 56,296 68,792 62,722 61,351 17%

NBFC-MFIs 129,414 140,026 149,128 147,386 155,390 20%

NBFCs 28,850 31,278 34,741 40,141 41,869 45%

Not for Profit MFIs 3,446 657 582 465 528 -85%

Total Industry 319,080 330,261 362,702 363,793 377,706 18%

Q-o-Q growth rate % 4% 10% 0.3% 4%

• MicroFinance industry grew by 18% in March 2024 over March 2023.

• NBFCs witnessed highest annual growth of 45% in March 2024 over March 2023.
Disbursement Trends
 Disbursement Trends – Institution wise
Disbursement
Amount (`crore)

107,186 77,040 95,913 96,848 104,546

35% 31% 37% 36% 35%

15% 17% 14% 14% 15%

41% 42% 39% 39% 41%

8% 9% 9% 10% 8%

1% 1% 1% 1% 1%

JFM ‘23 AMJ’23 JAS’23 OND’23 JFM’24

Banks SFBs NBFC-MFIs NBFCs Not for Profit MFIs

No. of Loans Disbursed (in lakh)
Lender Type JFM’23 AMJ'23 JAS'23 OND'23 JFM’24
• Loan disbursal in terms of volume
Banks 89 58 76 70 76 witnessed Y-o-Y degrowth of 13% and in
SFBs 34 28 28 28 33 terms of value 2%.
• In terms of value SFBs witnessed highest
NBFC-MFIs 105 76 86 84 91 Q-o-Q growth of 17% in JFM’24 over
OND’23.
NBFCs 18 14 19 19 15

Not for Profit MFIs 0.6 0.5 0.5 0.4 0.3

Total Industry 247 177 210 201 215

Disclaimer : Sourcing data of all the quarters have been updated based on the updates recieved from the members.
 Industry Ticket Size Trends

29% 29% 29% 28%

27%
• Loan disbursal for
24% 25% >60k ticket size
category grew by 20%
21%
20% 20% in JFM’24 compared to
18% 18% 19%
17% 17%
18% 18% JFM’23.
16% 16% 15% • Average ticket size
increased by 13% in
JFM’24 over JFM’23.
9% 8%
7%
5% 5%
4% 4% 6%
4% 4% 5% 4%
4% 4% 3%

JFM’23 AMJ’23 JAS’23 OND’23 JFM’24

0K-10K 10K-20K 20K-30K 30K-40K 40K-50K 50K-60K 60K Plus

Ticket Size JFM'23 AMJ'23 JAS'23 OND'23 JFM'24 Y-o-Y Growth Rate %
No. of Loans
0k-10k 10 7 8 7 7 -30% Disbursed (in lakh)
10k-20k 12 8 9 7 8 -33%
20k-30k 21 14 14 11 12 -43%
30k-40k 53 36 38 33 32 -40%
40k-50k 67 52 60 58 60 -10%
50k-60k 39 30 38 37 42 8%
60k Plus 45 30 43 48 54 20%
Total 247 177 210 201 215 -13%
Q-o-Q loan disbursal growth rate % -28% 19% -4% 7%
All India ATS (Rs) 43,284 43,294 45,829 48,171 48,757 13%
Q-o-Q ATS growth rate % 0.02% 6% 5% 1%
Disclaimer : Sourcing data of all the previous quarters have been updated based on the updates received from the members.
Industry Risk Profile
 Delinquency Trends

3.38% 3.54% 3.07% 3.37% 3.36% 1-179 days

past due

0.92%
1.06% 1.04% 1.16%
0.90%
0.53%
0.60% 0.59% 0.62%
0.51% 0.57%
0.49% 0.61% 0.52%
0.55%
1.58%
1.23% 1.13% 1.06%
1.05%

Mar’23 Jun’23 Sep’23 Dec’23 Mar’24

1-29 days past due 30-59 days past due 60-89 days past due 90-179 days past due

Delinquency by Days past due

Reporting Quarter 1-29 days past due 30-59 days past due 60-89 days past due 90-179 days past due 1-179 days past due

Mar’23 1.23% 0.49% 0.60% 1.06% 3.38%

Jun’23 1.58% 0.51% 0.53% 0.92% 3.54%

Sep’23 1.05% 0.55% 0.57% 0.90% 3.07%

Dec’23 1.13% 0.61% 0.59% 1.04% 3.37%

Mar’24 1.06% 0.52% 0.62% 1.16% 3.36%

• Delinquency in all the buckets have declined in March 2024 compared to December 2023 except 60-89 days past due and 90-179 days past due.
Aspirational Districts
 Aspirational Districts – March 2024 Overview

Portfolio (`crore) Amount Disbursed (`crore) – Apr’23 to Mar’24 • Portfolio outstanding for aspirational
districts as on 31st March 2024 is `53,483
crore.
• Aspirational districts contribute 14%
17,853 20,245 towards the total MicroFinance portfolio
6,710 6,617 outstanding.
23,514 22,893 • 30+ and 90+ delinquencies of aspirational
5,391 4,523 districts have increased in March 2024 as
compared to March 2023.
15 14

Banks SFBs NBFC - MFIs NBFCs Not for Profit MFIs

30+ and 90+ Delinquency by Lender Type

Aspirational Districts 31st March 31st March
Growth %
Growth Particulars 2023 2024
30+ Delinquency
Disbursement Amount (`crore) *44,954 **54,292 21%
90+Delinquency 9.28% Active Loans ('000) 16,160 18,067 12%

Portfolio Outstanding (`crore) 43,602 53,483 23%

5.75% ***30+ Delinquency 1.82% 1.90%

***90+ Delinquency 0.93% 0.96%

2.57%
2.02% 1.84% 1.90% *Disbursement April 2022 to March 2023
0.87% 1.13% 1.09% 0.96%
0.49% 0.96%
**Disbursement April 2023 to March 2024
***Delinquencies are calculated basis POS
Banks SFBs NBFC - MFIs NBFCs Not for Industry
Profit MFIs
Disclaimer: The data pertains to 117 aspirational districts
About SIDBI
Small Industries Development Bank of India has been established under an Act of the Parliament in 1990. SIDBI is mandated to serve as the Principal Financial Institution for executing the triple agenda of
promotion, financing and development of the Micro, Small and Medium Enterprises (MSME sector) and co-ordination of the functions of the various Institutions engaged in similar activities. Over the years, through
its various financial and developmental measures, the Bank has touched the lives of people across various strata of the society, impacted enterprises over the entire MSME spectrum and engaged with many
credible institutions In the MSME ecosystem. Under Vision 2.0, SIDBI has spearheaded various Initiatives to address the Information Asymmetry in MSME sector like MSME Pulse, the health tracker of MSMEs and
CriSidEx, for gauging the MSE sentiments & aspirations, Industry spotlight, a comprehensive report on industry Lenders and Fintech Pulse, for credit data insights on Fintech lending segment, apart from
MicroFinance Pulse.

SIDBI in MicroFinance space

SIDBI has played pioneering role in furthering the inclusive finance agenda through supporting the MicroFinance movement. The cumulative assistance disbursed under SIDBI's MicroFinance initiatives upto March
31, 2024 aggregate to `33,443 crore benefitting around 5.15 crore underserved clients. The debt and equity support to MFIs is well complemented by capacity building support to these institutions and imbibing
the corporate governance culture by supporting Compliance Assessment Tools etc. Apart from handholding the MicroFinance industry from fragile beginning to a full-fledged industry segment, culminating in the
transition of 8 of our partner MFIs into SFBs/Universal Banks. A path breaking initiative in Micro Lending is to make available small loans directly from SIDBI (through partnership arrangements), at interest rates
which are substantially lower than the market rates. Under this initiative, titled Prayaas, the Bank has been extending small ticket size loans of `0.50 lakh to `5 lakh to Micro borrowers at bottom of the pyramid
with interest rates comparatively lower than market rates under partnership model.

About Equifax
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies,
employees, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people
forward. Headquartered in Atlanta and supported by more than 11,000 employees worldwide, Equifax operates or has investments in 25 countries in North America, Central and South America, Europe, and the
Asia Pacific region. For more information, visit Equifax.com.

Disclaimer
The MicroFinance Pulse (Report) is prepared by Equifax Credit Information Services Pvt Ltd (Equifax). By accessing and using the report, the user acknowledges and accepts that such use is subject to this disclaimer. This Report is based on collation of information substantially
provided by MicroFinance institutions as of March 2024 and who are members of Equifax. While Equifax takes reasonable care in preparing the Report, it shall not be responsible for accuracy, errors and/or omissions caused by inaccurate or inadequate information
submitted by MicroFinance institutions. Further, Equifax does not guarantee the adequacy or completeness of the information in the Report and/or its suitability for any specific purpose nor is Equifax responsible for any access or reliance on the Report and that Equifax
expressly disclaims all such liability. This Report is not a recommendation for rejection/denial or acceptance of any application, product nor any recommendation by Equifax to (i) lend or not to lend and (ii) enter into or not to enter into any financial transaction with the
concerned individual/entity. The information contained in the Report does not constitute advice and the user should carry out all necessary analysis that is prudent in its opinion before taking any decision based on the Information contained in this Report. The use of the
Report is governed by the provisions of the Credit Information Companies (Regulation) Act 2005, the Credit Information Companies Regulations, 2006, Credit Information Companies Rules, 2006. No part of the Report should be copied, circulated, published without prior
approvals.
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Small Industries Development Bank of India

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Toll Free No.: 1800 226753
www.sidbi.in