Chennai: The liquidity crisis in the non-banking finance company (NBFC) sector does not seem to have affected the microfinance institutions (NBFC-MFIs) in this space. The segment has clocked over 40 per cent growth in gross loan portfolio (GLP) in FY19.
Data collated by industry body MFIN India shows the aggregated gross loan portfolio of 53 large and medium NBFC-MFIs, as on March 31, 2019, stood at Rs 68,207 crore, a growth of 47 per cent over FY18.
Sa-Dhan, another MFI association that has a larger data base of NBFC-MFIs and not-for-profit MFIs, also has seen a total GLP growth of 37 per cent in FY19. It estimates that total gross loan portfolio will cross Rs 90,000 crore once all the 200 MFIs report their audited financial. Those who have already reported, have recorded a growth of 37 per cent.
According to Harsh Shrivastava, CEO, MFIN, the NBFC liquidity crisis affected the small and medium MFIs for a short-term as more than 80 per cent of their borrowings are dependent on NBFCs.
“At that time MFIN did a lot of work around securitisation to infuse liquidity. Two securitisation deals worth Rs 282 crore were closed,” he said.
For larger MFIs, banks account for 80 per cent of their borrowings. Compar-ed to other NBFCs, banks found MFIs to be less risky.
The Asset Liability Man-agement analysis shows that all sizes of NBFC-MFIs are well placed across various buckets. Their borrowings are of longer term while assets are of shorter-term, this gives them a comfortable gap....