Speaking about the report, P. Satish, Executive Director – Sa-Dhan, said, Releasing the “Bharat Microfinance Report 2015”, at National Financial Inclusion Conference 2015, H R Khan, Dy. Governor – Reserve Bank of India, said, The total number of clients served by MFIs stood at 371 lakh as on 31 March 2015. Client outreach of MFIs had grown substantially from 2005 to 2011 reaching 317 million. This trend slowed down during 2012 and 2013 and the number of clients slumped to 275 lakh. The trend reversed in 2014 with growth and reached a level of 330 lakhs. This trend continues in 2015 with an astounding rise in clients/ borrowers to an all-time high of 371 lakh. The majority of these clients are being served by NBFC-MFIs (85.18%), primarily the larger ones. MFIs with an outstanding portfolio above Rs. 500 crores are responsible for reaching out to 82.21% of the clients in the industry. The below chart shows Outreach to Borrowers: Yearly Trend and Category – wise Breakup for 2015: Out of the total client base of 371 lakh, South alone contributes to 39% followed by 25% in the East. Central region and West have 15% and 11% of total outreach respectively. North-East and North have the least client outreach numbers with 6% and 4% respectively. Share in outreach has expanded only in the case of Central and North-East regions from 13 to 15 % and 5 to 6 % respectively.
According to the Bharat Microfinance Report – 2015, 2014-15 can describe as watershed year as far as the rural-urban divide in Indian microfinance is concerned. A very interesting trend is seen in the rural-urban focus of MFIs. The share of rural clientele which was 69 % in 2012 decreased to 56 % in 2014 and has drastically come down to 33 %. The proportion of rural to urban clients for the year 2014-15 is 33% to 67%. For the first time, the urban clientele has outstripped the rural clientele of MFIs. Elaborating on the role of the National Financial Inclusion Conference, HR Khan, Dy. Governor – RBI emphasized the relevance of the theme of the conference, “reaching the unbanked through the digital revolution” for the future growth of the sector. The microfinance and financial inclusion movement in India is at an inflection point, with significant developments and churning in the recent past, at the same time there is uncertainty on the future course of these developments.
title: “Microfinance Portfolio In India Pegged At Rs 50 000 Crore” ShowToc: true date: “2022-12-25” author: “Everett Deloach”
Speaking about the report, P. Satish, Executive Director – Sa-Dhan, said, Releasing the “Bharat Microfinance Report 2015”, at National Financial Inclusion Conference 2015, H R Khan, Dy. Governor – Reserve Bank of India, said, The total number of clients served by MFIs stood at 371 lakh as on 31 March 2015. Client outreach of MFIs had grown substantially from 2005 to 2011 reaching 317 million. This trend slowed down during 2012 and 2013 and the number of clients slumped to 275 lakh. The trend reversed in 2014 with growth and reached a level of 330 lakhs. This trend continues in 2015 with an astounding rise in clients/ borrowers to an all-time high of 371 lakh. The majority of these clients are being served by NBFC-MFIs (85.18%), primarily the larger ones. MFIs with an outstanding portfolio above Rs. 500 crores are responsible for reaching out to 82.21% of the clients in the industry. The below chart shows Outreach to Borrowers: Yearly Trend and Category – wise Breakup for 2015: Out of the total client base of 371 lakh, South alone contributes to 39% followed by 25% in the East. Central region and West have 15% and 11% of total outreach respectively. North-East and North have the least client outreach numbers with 6% and 4% respectively. Share in outreach has expanded only in the case of Central and North-East regions from 13 to 15 % and 5 to 6 % respectively.
According to the Bharat Microfinance Report – 2015, 2014-15 can describe as watershed year as far as the rural-urban divide in Indian microfinance is concerned. A very interesting trend is seen in the rural-urban focus of MFIs. The share of rural clientele which was 69 % in 2012 decreased to 56 % in 2014 and has drastically come down to 33 %. The proportion of rural to urban clients for the year 2014-15 is 33% to 67%. For the first time, the urban clientele has outstripped the rural clientele of MFIs. Elaborating on the role of the National Financial Inclusion Conference, HR Khan, Dy. Governor – RBI emphasized the relevance of the theme of the conference, “reaching the unbanked through the digital revolution” for the future growth of the sector. The microfinance and financial inclusion movement in India is at an inflection point, with significant developments and churning in the recent past, at the same time there is uncertainty on the future course of these developments.
