According to the Microfinance Institutions Network (MFIN), the microfinance industry grew by 24% to Rs 2.93 lakh crore, with banks maintaining their dominance with a 38.4% market share. Micro loan disbursals increased by nearly 80% during the June quarter to Rs 45,830 crore from Rs 25,503 crore during the same period last year. Compared to 7.1 million throughout the same period, 11.6 million loans were disbursed.
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Aside from banks, the portfolio of other microlenders experienced double-digit growth. MFIs that provide non-bank financial services saw an increase of 35.18%. Small Finance Banks recorded a percentage of 27.66%. YoY
The companies that will report their earnings for the quarter ended June 2022 include Adani Total Gas, Adani Enterprises NSE -1.13%, Dabur India, Britannia Industries NSE -0.76%, Berger Paints, GAIL (India), Balkrishna Industries NSE -1.48%, Abbott India, Container Corporation of India NSE -3.37%, Dalmia Bharat, REC, Bayer Cropscience NSE -1.38%, LIC Housing. Bharti Airtel: The telecom provider stated it had secured 5G network agreements with equipment suppliers Ericsson, Nokia, and Samsung to start deployment this month, only days after placing bids for spectrum in auctions.
Vodafone Idea: Due to an increase in interest and financing costs as well as EBIT loss, the telecom operator reported a loss of Rs 7,296.7 crore for the quarter ended June 2022 as opposed to Rs 6,563.1 crore the prior quarter. The June 2022 quarter’s operating revenue increased by 1.6% to Rs 10,410.10 crore.
Adani Transmission NSE -3.14%: For the three months that ended on June 30, the Adani Group company declared a combined net profit after tax (PAT) of Rs 168.46 crore. The company’s consolidated PAT for the previous fiscal year was Rs 433.24 crore.
-1.73% InterGlobe Aviation NSE: The aviation company’s net loss for the June FY23 quarter was Rs 1,064.3 crore, which was lower than the loss of Rs 3,174.2 crore in Q1FY22. To reach Rs 12,855.3 crore during the same period, revenue increased by 327.5%.
Disbursements increased significantly from Rs 27,328 crore in the same quarter of last year to Rs 57,842 crore in April-June 2022 (Q1Fy23). However, when lenders adjusted their distribution policies in accordance with the new restrictions, Sa-Dhan noted, disbursement is down about 35% from the previous quarter (Q4Fy22).
Loan recovery increased from the previous quarter and in certain states reached almost 99 percent. There are still certain regions, nevertheless, where collecting is below average. For instance, Assam has to collect effectiveness of between 50% and 55%. At the end of June 2022, the sector’s non-performing assets were around 12% and 9% for NBFC-MFIs.
Through 120 million loan accounts, the industry services 60 million distinct consumers.
The most significant portion of the microloan portfolio is held by Bandhan Bank and 11 other banks, with a combined sum of loans outstanding of Rs. 1.13 lakh billion. With loans outstanding totaling $1.03 lakh crore, or 35% of the entire sector portfolio, NBFC-MFIs are the second-largest provider of microcredit. With a total share of 16.9%, small finance banks currently hold loans totaling Rs 49,646 crore. NBFCs hold loans totaling 8.8%, and other MFIs hold loans totaling 0.9% of the entire market.
The industry was still able to record a growth of 23.5% in the portfolio on an annual basis and 2.7% over the previous quarter, which should see further strengthening in the coming quarters, according to MFIN chief executive Alok Misra. “Most institutions took some time in making policy changes and adapting to the new harmonized guidelines, but the industry was still able to record those results,” Misra said.
