Microfinance sector grows at 26.5 pc in Oct-Dec quarter

The microfinance sector grew by 26.5 per cent in the October-December quarter of 2019-20 with portfolio outstanding at Rs 2.12 lakh crore, says a report.

The sector witnessed a growth of 8.5 per cent on a sequential basis.

"Both rural and urban geographies witnessed steep growth as compared to the second quarter of FY20, with rural sector growing at a phenomenal 10 per cent as against 1.6 per cent in the previous quarter and urban sector at 6.6 per cent against 1 per cent in the previous quarter," according to Crif Microlend, a quarterly report on the micro-lending industry in the country.

Disbursements in the third quarter stood at Rs 62,043 crore, 22 per cent higher than same quarter previous year.

Total loans disbursed (volume) in the period stood at 178 lakh, up by 1.05 per cent from Q2 and 10 per cent higher than same quarter previous year.

Disbursed amount in the third quarter of FY2019-20, from the eastern region stood the highest at 36 per cent. Southern region occupied 25 per