According to a recent report by a credit information company, the microlending portfolio in India saw significant growth during the December quarter, reaching Rs 4.02 lakh crore. This marked a 30.9% increase from the previous quarter. NBFCs-MFIs held the largest market share at 38.3%, with banks, small finance banks, and other NBFCs accounting for 33.4%, 17.4%, and 9.4% respectively.
When it comes to asset quality, the report indicated that loans overdue by 30 days remained stable at 2%, while those overdue by 90 days were also steady at 0.9%. The average balance per borrower rose to Rs 48,900 in the December quarter, showing a slight increase compared to the previous quarters. It was noted that 83.4% of borrowers had exposure to less than 2 lenders during December, with Tamil Nadu having the highest incidence of multiple borrowing among borrowers.
States like West Bengal and Uttar Pradesh experienced significant growth during the recent quarter, with Bihar holding the highest share in the gross loan portfolio. The top ten states collectively constituted 83% of the microlending industry's overall share, indicating regional concentration in the industry's growth and distribution.