According to a report by Sa-Dhan, the gross loan portfolio (GLP) of microfinance lenders declined marginally by 1.1 per cent to Rs 2,25,331 crore in the September quarter. The gross loan portfolio stood at Rs 2,27,843 crore in the corresponding period of the previous fiscal. Sa-Dhan, a self-regulatory organization for microfinance Area, has 229 members, including Self help group Promoting Institutions, MFIs (for profit and not for profit), banksMILF Rating agencies, Capacity Building Institute etc.

The report said the total disbursement of all lenders during the second quarter of FY22 stood at Rs 66,694 crore, as against Rs 34,135 crore disbursed during the same quarter last year. Sa-Dhan Executive Director P Satish said the sector affected due to the second COVID wave in the first quarter of this financial year has seen an improvement in repayments and fresh disbursements.

The decline is slowing, although fund access and operations of medium and small remain under pressure MFI’s, she added. “We expect and expect a gradual recovery in the next quarter as borrowers’ incomes stabilize further,” he said.

As of September 30, the portfolio at risk (PAR) stood at 30+ 10.18 per cent and PAR at 90+ 2.96 per cent, the report said. While the average collection efficiency has increased to more than 95 per cent in Q2 of FY 2022 from 85 per cent in Q1 FY2022, there are 13 states/UTs including Lakshadweep, Assam, Mizoram, Manipur and West Bengal, Whose PAR 30+ value is more than the industry. An average of 10.18 per cent, the report said.