Micro loan portfolio of several lenders increased by 27 per cent in the March 2024 quarter on a year-on-year (YoY) basis, a study by credit information company, Crif High Mark, revealed on Tuesday.
The study found that the stress levels regarding loan default increased marginally during the January-March quarter, after remaining stable or improving in the last few quarters, reported PTI.
The data revealed that personal loan dues of microfinance borrowers grew at the second fastest growth rate among retail assets with a portfolio growth of more than 38 per cent. The gross loan portfolio of the lenders climbed 28 per cent to touch Rs 4.42 lakh crore in December, against 8.5 per cent growth seen in the same quarter a year earlier, the data found.
Amongst the states, West Bengal, Bihar, and Uttar Pradesh recorded the fastest growth during the January-March quarter. The top 10 states contributed to 83.5 per cent of the Gross Loan Portfolio (GLP).
The ratio of loan assets overdue for 31 to 180 days surged to 2.1 per cent in the March quarter, up from 2 per cent in the preceding December quarter.
In terms of asset quality, Tirunelveli district emerged as the worst performer, followed by Coimbatore and Madurai, in turn, making Tamil Nadu home to three worst performing districts in terms of stress for microlenders.
Tamil Nadu also reported an outstanding of Rs 62,200 per borrower, surpassing nationally in terms of average balances per account. The report found that borrowers with more active loans reported higher delinquency, and more than 12 per cent of the borrowers logged four or more active loans.
In terms of maximum active loans amongst borrowers, Karnataka dominated the rest. Personal loans in the unsecured lending segment clocked the second fastest growth at 38 per cent, while property loans secured the fastest growth at more than 41 per cent.
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