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Microfinance Statistics

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Out of the 6.7 billion in the world, 3 billion people live on less than USD 2 per day (ILO).
80% of the world’s population has no access to financial services(GDRC).

India is the world’s largest microfinance market where more than 600 million people live on less than US$1.50 a day (Report by CGAP and JPMorgan Chase & Co)
Indian Microfinance Industry to cross 110 million clients and $30 billion in loan portfolio by 2014. ( Intellecap)

Present coverage
As on 31 March 2009, there are more than 61 lakh saving-linked SHGs and more than 42 lakh credit-linked SHGs and thus, about 8.6 crore poor households are covered under the programme.

Self Help Group (SHG) - Bank Linkage
Savings of SHGs with Banks As on 31 March 2009, total 61,21,147 SHGs were having saving bank accounts with the banking sector with outstanding savings of Rs. 5,545.62 crore as against 50,09,794 SHGs having savings of Rs. 3785.39 crore as on 31 March 2008, thereby having growth rate of 22.2% and 46.5% respectively. Thus, more than 8.6 crore poor households were associated with banking agencies under SHG-Bank Linkage Programme. As on 31 March 2009, the Commercial Banks had the maximum share of SHGs’ savings of 35,49,509 SHGs (58%) with savings amount of Rs. 2772.99 crore (50%) followed by Regional Rural Banks having savings bank accounts of 16,28,588 SHGs (26.6%) with savings amount of Rs. 1989.75 crore (35.9%) and Cooperative Banks having savings bank accounts of 9,43,050 SHGs (15.4%) with savings amount of Rs. 782.88 crore (14.1%).

The share under SGSY in the total savings was 15,05,581 SHGs with savings of Rs.1,563.39
crore forming 24.6 % of the total SHGs having savings accounts with the banks and 28.1% of total savings amount.

During the year under review, the average savings per SHG with all banks had increased from Rs 7,556 as on 31 March 2008 to Rs. 9,060 as on 31 March 2009. It varied from as high of Rs.12,218 per SHG with RRBs to as low of Rs. 7,812 per SHG with Commercial Banks. As on 31 March 2009, the share of women SHGs in the total SHGs with saving bank accounts was 48,63,921 SHGs forming 79.46 % as compared to the last year’s share of 79.56%.

During the year 2008-09, the banks fi nanced 16,09,586 SHGs, including repeat loan to the existing SHGs, with bank loan of Rs. 12,253.51 crore as against 12,27,770 SHGs with bank loan of Rs. 8,849.26 crore during 2007-08 registering a growth rate of 31.1% (No. of SHGs) and 38.5% (Bank Loan disbursed). Out of the total loans disbursed during 2008-09, SHGs fi nanced under SGSY were 2,64,653 (24.6%) with bank loan of Rs. 2015.22 crore (28.2%) as against 2,46,649 SHGs (20%) with bank loan of Rs. 1857.74 crore (21%) during 2007-08.

During 2008-09, average bank loan disbursed per SHG was Rs.76,128 as against Rs.72,060 during 2007- 08. The average loan per SHG ranged from as high of Rs. 80,237 per SHG by Commercial Banks to as low of Rs.50,117 per SHG by Cooperative Banks

Bank Loans outstanding against SHGs
As on 31 March 2009, total number of 42,24,338 SHGs were having outstanding bank loans of Rs. 22,679.85 crore as against 36,25,941 SHGs with bank loans of Rs. 16999.90 crore as on 31 March 2008 with a growth rate of 16.5 % (No. of SHGs) and 33.4% (Bank Loan outstanding with SHGs). The share of SHGs under SGSY was 9,76,887 SHGs (23.1%) with outstanding bank loans of Rs. 5,861.72 crore (25.8%) as against 6,16,978 groups (25.2%) with outstanding bank loans of Rs. 4,816.87 crore (28.05%) as on 31 March 2008.

Non-Performing Assets (NPAs) of Bank Loans to SHGs
As on 31 March 2009, totally 292 banks had reported data on NPAs. Based on the data, NPAs to total bank loans outstanding against SHGs were 2.9%, which amounted to Rs.625.86 crore. Whereas, during 2007-08, it was Rs 422.93 crore, which was also
2.9% of total bank loans outstanding against SHGs. Incase of SHGs under SGSY, as reported by 165 banks, NPAs to total bank loans outstanding against SHGs were 5%, which amounted to Rs. 244.45 crore, as on 31 March 2009

Recovery performance of Bank Loans to SHGs
On the basis of data reported by banks, out of 267 banks which have reported the recovery data, 181 banks (67.8%) had more than 80% recovery of SHG loans as on 31 March 2009 which is observed to be the same as on 31 March 2008.

SHGs – Micro Finance Institutions (MFI)-Bank Linkage
During the year 2008-09, the banks financed 581 MFIs with bank loans of Rs. 3,732.33 crore as against 518 MFIs with bank loans of Rs. 1,970.15 crore during 2007-08, thus achieving a growth rate of 12.2% (No. of MFIs) and 89.4% (Bank Loans disbursed to MFIs). As on 31 March 2009, the outstanding bank loans to 1915 MFIs was Rs. 5009.09 crore as against Rs. 2748.84 crore to 1109 MFIs as on 31 March 2008

NABARD

30% of all microfinance equity transactions worldwide in 2009 took place in India (CGAP/J.P. Morgan)

The sector accounted for 40% of all Private Equity deals in the past 18 months. There were 11 PE deals worth 178 million during the financial year 2009, compared to three deals worth $52 million in 2008.(Venture Intelligence).

MFIs in the country have managed to provide finance to over 2.2 crore poor rural households. While the total outstanding MFIs in the country is around Rs 30,000 crore, defaults are in the range of 1-1.5%

The Indian micro finance industry (MFI) would cross 11 crore borrowers and Rs 135,000 crore ($30 billion) in loan portfolio by 2014 and will require a huge capital inflow both in debt and equity, according to a latest report by Intellecap. The Indian micro finance industry (MFI) would cross 11 crore borrowers and Rs 135,000 crore ($30 billion) in loan portfolio by 2014 and will require a huge capital inflow both in debt and equity, according to a latest report by Intellecap.
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During 2008-09, 10.81 lakh new SHG were credit linked and bank loan of Rs.11,132 crore
disbursed. The programme has covered more than 7.01 crore poor households, making it the largest micro-Finance (mF) programme in the world. As on 31 March 2008, 50.09 lakh SHG maintained savings worth Rs.3,785 crore with the banking sector. During 2007-08, bank credit of Rs.8,849 crore and Rs.1,970 crore was disbursed to 12.27 lakh SHG
(including 2.46 lakh under SGSY) and 518 MFI, respectively.

Global Coverage
The world’s 10,000 microfinance institutions provide funding to 150 million active clients, 3/4 of who are women. An estimated 500 million potential microfinance clients are yet to be reached (Planet Finance).

Fewer than 2 % of poor people have access to financial services (credit or savings) from sources other than money lenders. (Data Snapshots on Microfinance - The Virtual Library on Microcredit).

The Microcredit Summit estimates that Rs 1015 billion (USD 21.6 billion) is needed to provide microfinance to 100 million of the world's poorest families. The Summit planners say it should be possible to raise USD 2 billion from borrowers' savings alone. The final figure may be even higher. (Data Snapshots on Microfinance - The Virtual Library on Microcredit).

There is a potential demand for microsaving services from 19 million savers. (Data Snapshots on Microfinance - The Virtual Library on Microcredit).

Studies of the impact of microcredit in more than 24 countries found dramatic improvements in household income levels. These improvements took place primarily through growth in the borrower's business, which translated into increased household income. The studies found that access to microcredit allowed the borrower to increase the number of goods or services sold and reduce the costs of supplies and raw materials. As a result, sales increased and profits grew from 25% to 40% (Unitus).

Financial Inclusion
The statistics on financial exclusion in India are disheartening. Out of the 600,000 habitations in the country, only about 30,000, or just 5 percent, have a commercial bank branch. Just about 40 per cent of the population across the country have bank accounts, and this ratio is much lower in the north-east of the country. The proportion of people having any kind of life insurance cover is as low as 10 per cent, and the proportion having non-life insurance is an abysmally low 0.6 per cent. People having debit cards comprise only 13 per cent and those having credit cards a marginal 2 per cent.
From the speech of the RBI Governor