Latest News | MFIs Seek More Penetration in Terms of Household Coverage
Get latest articles and stories on Latest News at LatestLY. Micro-finance Institutions (MFIs) have sought more penetration in terms of household coverage to increase their portfolio of disbursements, an official said on Monday.
Kolkata, Feb 12 (PTI) Micro-finance Institutions (MFIs) have sought more penetration in terms of household coverage to increase their portfolio of disbursements, an official said on Monday.
CEO and director of Microfinance Institutions Network (MFIN) Alok Misra said there are 7.3 crore low-income borrowers in the country at present with an outstanding portfolio of Rs four lakh crore.
Misra told reporters here that the potential for the MFI sector is to have an outstanding of Rs 13 lakh crore, adding that there is a huge scope for growth.
In West Bengal, the total outstanding of the MFIs is around Rs 35,000 crore covering 65 lakh borrowers.
Nine per cent of the overall outstanding portfolio is from West Bengal, he said.
MD of Arohan Financial Services Manoj Nambiar said that there is under-penetration of MFI coverage in the country at present.
This penetration needs to grow, he said.
Kuldip Maity, MD of VFS Capital, said that historically the average levels of NPAs in the MFI sector is less than one per cent.
Maity said MFIs will play an important role in the sustainable growth of the economy.
Misra said the MFI sector is seeking a guarantee scheme for the loans for which the individual entities will pay a small premium.
The sector is also looking for a financial institution to be dedicated only for refinancing small MFIs.
The 8th Eastern India Microfinance Summit to be organised by the West Bengal chapter of the Association of Microfinance Institutions (AMFI) will be held on February 22. PTI dc
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)