The microfinance institutions (MFIs) outreach grew by 40 per cent and credit portfolio outstanding by 72 per cent during 2007-08, a report on the microfinance sector in India has said.
In its latest ‘Bharat Microfinance Report: Side by Side 2008’, Sa-Dhan, association of community development finance institutions in India, said the MFI channel served 141 lakh clients or about two out of five microfinance clients in India.
According to Mr Mathew Titus, Executive Director of Sa-Dhan, the report analysed financial performance of 142 of the 160 MFIs, from whom data was received.
“The major channels of microfinance are MFIs and NABARD’s SHG-Bank Linkage Programme (SBLP) and together they reached over 335 lakh clients, providing a micro-credit portfolio of around Rs 23,272 crore by March 2008,” the report said.
The report said north-eastern region has a marginal increase in its client outreach growth rate from 48 to 49 per cent, as against a sharp decline of the growth rate in the eastern region from 80 to 48 per cent.
“The reason for decline could be, eastern region has seen a higher growth in the recent past, and, now with a larger client base, the relative growth might have come down,” it said.
The southern region increased its portfolio growth rate from 64 to 75 per cent.
The growth of the Bharat Microfinance would have been impossible without commercial funding, i.e. bank lending to MFIs for their on-lending to the poor.