News Karnataka
Thursday, March 28 2024
Cricket
Business

Microfinance sector witnesses recovery in Q4 FY21: Report

New India Assurance posts Rs 160469 cr net profit MAIN
Photo Credit :

New India Assurance posts Rs 160469 cr net profit MAINNew Delhi: The microfinance sector in India witnessed recovery in the books in the fourth quarter of FY21, with a quarter-on-quarter (QoQ) growth of 10 per cent, according to the CRIF MicroLend report.

During the first two quarters of the last financial year, the sector had witnessed de-growth followed by a 1.5 per cent growth in the third quarter.

Live customer base in the microfinance segment grew by 4.2 per cent on a QoQ basis, and 13 per cent on a year-on-year basis and both urban and rural markets witnessed significant quarterly growth of 8.5 per cent and 10.4 per cent, respectively.

The CRIF report noted that the average balance per account witnessed QoQ growth of 5.5 per cent and YoY growth of 6.8 per cent. Further, the average balance per unique microfinance borrower witnessed QoQ growth of 5.1 per cent and comparatively higher YoY growth of 13.5 per cent.

CRIF High Mark, Head of Products, Vipul Jain, said: “Microfinance industry demonstrated strong resilience and recovered in Q2 after muted business in Q1 FY 20-21. Loan disbursements in Q3 and Q4 FY 20-21 were similar to previous year’s respective quarters.”

“Delinquency was higher in Q3 and Q4 of FY 20-21 compared to pre-Covid levels… we hope to see these numbers move back to their historic levels in the coming quarters,” he added.

Share this:
MANY DROPS MAKE AN OCEAN
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

To get the latest news on WhatsApp