The NBFC-MFIs (non banking finance company-micro finance institutions) group dominated the microfinance market with portfolio share of 35.1% as of September last year, credit information services company Crif High Mark said in a report.
It said that NBFC-MFIs surpassed banks by a thin margin. Banks as a group controls 34.8% of the market, in which lenders provide micro loans without collateral to joint liability group members. Loans given by banks to self help group members are not included here.
The Crif report thus validates the trend which was first spotted by microfinance industry body Sa-Dhan earlier in December.
The small finance banks group controls 16.8% of the market while other NBFCs and not-for-profit companies together enjoy 13.3% market share.
According to Crif, the size of the market grew 21.5% year-on-year to Rs 3 lakh crore at the end of September last year. NBFC-MFIs as a group grew 32.2% during the same period while banks reported 4.1% rise in their collective microfinance portfolio.
Crif said that about 47% of NBFC-MFIs’ portfolio consisted of loans of ticket sizes between Rs 30000 and Rs 50000, as against 35.9% for banks and 50.2% for SFBs.
The report highlighted that micro loans portfolio at risk for over 30 days after the due date of repayment (PAR 30+ DPD) improved to 5.4% at the end of September from 5.8% three months prior to that.
