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17
February 2017
The
Indian microfinance industry recorded a drop of 26% in the number of loans
disbursed and a 16% decline in loan amounts disbursed during the third quarter
ended December, as compared to the corresponding quarter of the last fiscal,
the Microfinance Institutions Network (MFIN) said on Thursday. The Total Investment & Insurance Solutions
"The
pulling out of the High-Value Currency Notes (HCVNs) from circulation
significantly impacted the microfinance sector, which is 99 per cent
cash-driven," MFIN -- the self-regulatory body of the Reserve
Bank-regulated non-banking finance companies (NBFCs) and microfinance
institutions (MFIs) -- said in a release here.
"The
decrease on both disbursement and collection is due to the impact on industry
post discontinuance of Rs500 and Rs1,000 notes," it said.
"Post
the discontinuation of HCVNs with effect from midnight of 8th November, the
industry was thrown out of gear initially," said MFIN Chief Executive
Ratna Vishwanathan.
"During
the whole two months post discontinuing of High-Value Currency Notes, MFIN has
had to engage with state governments, at both the ministerial level as well as
the bureaucracy, the RBI and extensively with the press, to quell the surge of
disinformation with reference to microfinance practices," she added. The Total Investment & Insurance Solutions
According
to the body, loans disbursed during the third quarter ended December amounted
to Rs12,424 crore, as compared to Rs14,707 crore disbursed during the same
quarter last year.
However,
the microfinance industry grew by 53% year-on-year during the quarter in
consideration, the statement said. The Total
Investment & Insurance Solutions
The
aggregate gross loan portfolio of microfinance institutions stood at Rs56,634
crore in the quarter ended December 2016, as compared to Rs36,912 crore in the
same quarter of the previous year. The Total
Investment & Insurance Solutions
The
MFIN also said that 56% of total disbursements during the quarter came from
five states -- Karnataka, Tamil Nadu, Maharashtra, Odisha and Bihar.The Total Investment & Insurance Solutions
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