MFIs may clock 20-22% portfolio growth over medium term, says Icra
Updated : July 30, 2018 11:46 PM IST
The overall growth, however, would be moderated to an extent by the focus of microfinance focused small finance banks on increasing portfolio share of other asset classes such as business loans, affordable housing and retail lending.
The microfinance sector, including the self-help groups (SHGs) bank linkage programme, recorded an aggregate 22 percent on year growth to touch Rs 2.05 lakh crore as on March 31, 2018.
Compared to the sector's growth, the portfolio outstanding under non-banking finance companies (NBFC-MFIs), microfinance focused small finance banks (SFBs) and universal banks (excluding SHG bank linkage programme) grew at a faster pace of 25 percent during the period.