BIZ-MFI-EAST

MFI industry grew 60pc YoY in Q3 in eastern region: Report
    Kolkata, Mar 1 (PTI) Microfinance institutions
witnessed a 60-per cent, on-year credit growth in the east and
northeastern states during the quarter ended December,
brokerage Kotak Securities said in a report.
    "NBFC-MFIs saw 60 per cent YoY rise in loans in the
states of Assam, Bihar, Jharkhand, Odisha and West Bengal,"
Kotak Securities said in the note.
    The MFI industry in the December quarter grew by 43
per cent year-on-year, but was slower than the 50-per cent
rise registered in the second quarter of the 2018-19 fiscal,
it said.
    However, "NBFCs led the QoQ deceleration, probably due
to the recent tightness in liquidity conditions," the
brokerage said.
    The share of loans increased 200 basis points YoY to
37 per cent in the east, and about 53 per cent of the
expansion of incremental branch additions were in the region
during the period under review, the note said.
    "The NBFC-MFIs (aligned with MicroFinance Institutions
Network) saw a sharp increase in securitisation in overall
funding mix to 44 per cent. Within debt funding, share of bank
borrowings increased to 67 per cent," Kotak said.
    The MFI Network had said member NBFC-MFIs received a
total of Rs 8,235 crore in debt funding in the quarter to
December.
    "The MFI industry is in resurgence phase. Therefore,
we are optimistic about better Q4 growth. The industry is
expected to grow at 40-45 per cent," said Kuldip Maity, MD and
CEO, Village Financial Services Ltd. PTI BSM
RBT RBT