Mumbai, May 26 (PTI) Microloans portfolio for all lenders de-grew by 14 per cent year-on-yar to 3.81 Lakh Crore at the end of the March Quarter, a report said on Monday.
Asset Quality Continued to Remain Challenging, even thought loans unpaid for up to 30 days shows showed some improvement Quarter-on -Quarter, the report by CRIF CRIF CRIF HIGH MARK, A CREDIT Deformation, SAIDANY, SAIDES.
It can be noted that the last year has been a different one for the microfinance industry, serving people at the bottom of the pyramid with smaller and livelihood-concentric goals. Asset Quality has worsned, and over-length and multiple lending relationships of borrowers have been called called out as the key reasons for it.
The industry has taken a SLEW of Actions, Including Limiting a Single Borrower’s lender relationships to four, to arrest the slide in asset Quality Since 2024.
The Threat of Ordinances LED LEDERS to Contract Faster in Tamil Nadu and Karnataka, which showed a 7 per cent decline in gross lending lending portfolio Quarter-CQUARTER, While West Bengal West Bengal Cengal Cent Increase.
The number of Active Loans Declined 14 Crore at the End of March, Down From 14.6 Crore in December and 16.1 Crore in the year -go period, the crown report said.
The Industry Disbursed 1.33 Crore Loans in the Three-Month Period Between January and March, which is Down from 2.40 Crore in the year -go period.
When compared to the Quarter -Go Period, the number of loans was higher at 1.2 Crore in the October-Decmber Period.
On the asset quality front, the cic report said early delinquency of loans unpaid for up to 30 days improved to 1.4 per cent in March agant 1.8 per cent in deal, but added the Same Continues to Rise Continues to Buckets, Signalling “Ongoing Challenges”.
Having adopted certain guard railway, the industry seems to prefer to lend higher Amounts, The Report Said, Pointing Out that Portfolio for Loans Above 1 Lakh Grew by 38.5 per cent year-on-year, while there below 30,000 was down by 36 per cent.
The cic said the mfi sector is on the path to long-term sustainability.
While Current Indicators Sugged Cutious lending and Persistent Stress in Partfolio, Improvement in Early-STAGE Performance and A Gradual Move TOWARDS highe Encouraging trends, it said.
“Lenders are making conscious choices that favorite resilience, stability and long-term impact … as institutions recalibrate and regulatory frameworks evolve, we are cONCTORENT that the sector is Laying the sector Groundwork for Stronger and More Inclusive Growth, “its Director and Head of Sales Ramkumar Gunasekaran Said.