MFIN MicroMeter June, 2012
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Microfinance Institutions Network (MFIN) 216, Radisson Suites, Sushant Lok 1 Gurgaon 122002, Haryana, India +91 124 4212570 www.mfinindia.org
Introduction This is the inaugural edition of the MFIN MicroMeter It provides an overview of the microfinance industry s position as of st 31 March, 2012 (FY 2011-12 ) The data and analysis is based on FY 2011-12 provisional financials provided by 45 members MFIN members constitute about 90% of the microfinance sector. Hence the data / analysis is a good representation of the state of India s microfinance industry We wish to thank all MFIN members for providing data within 60 days of the close of FY 2011-12 1
Summary 45 Member NBFC-MFIs ( providing data ) 9,843 Branches 68,976 Employees 2,27,66,021 Clients Rs 1,54,430 mn Gross Loan Portfolio Rs 2,01,347 mn Loan Disbursements 2 2
Clients Client base of over 22 mn 30 2010-11 2011-12 Pan India: Decrease of 17% over FY 2010-11 AP MFIs: Decrease of 28% over FY 2010-11 Non AP MFIs: Near static at FY 2010-11 levels 25 20 17% mn 15 28% 10 5 3 0 27.59 22.77 17.09 12.36 10.50 10.41 Pan India AP MFIs Non AP MFIs
Loan Accounts Total number of loan accounts at 25.45 mn 35 2010-11 2011-12 Pan India: Decrease of 22% over FY 2010-11 AP MFIs: Decrease of 32% over FY 2010-11 Non AP MFIs: Near static at FY 2010-11 levels 30 25 20 22% mn 15 32% 10 4 5 0 32.69 25.45 22.07 14.97 10.62 10.48 Pan India AP MFIs Non AP MFIs
Disbursements Gross disbursements at Rs 201 bn (Rs 20,000 Cr approx) - drop of 38% over FY 2010-11 350 300 2010-11 2011-12 AP MFIs: Decrease of 67% over FY 2010-11 Non AP MFIs: Increase of 5% over FY 2010-11 250 38% 200 Rs bn 150 5% 100 67% 50 0 326.29 201.35 196.13 64.66 130.16 136.69 5 Pan India AP MFIs Non AP MFIs
Gross Loan Portfolio (GLP) 200 2010-11 2011-12 GLP (on Balance Sheet) at Rs 154 bn (Rs 15,400 Cr, approx) Pan India: Decrease of 15% over FY 2010-11 AP MFIs: Decrease of 38% over FY 2010-11 180 160 140 120 15% Non AP MFIs: Increase of 22% Significant asset sales/securitization transactions took place in the year (please see slide 7) Rs bn 100 80 60 38% 22% 40 6 20 0 181.57 154.43 113.14 70.60 68.44 83.83 Pan India AP MFIs Non AP MFIs
Asset Sale/Securitization Asset Sale/Securitization transactions totaled Rs 30 bn (Rs 3,000 Cr approx) This represents a growth of 100% against Rs 15 bn (Rs 1,500 Cr approx) of FY 2010-11 20 MFIs sold/securitized their microcredit assets 3,500 3,000 2,500 100% Rs Cr 2,000 1,500 1,000 7 500 0 1,500 3,000 2010-11 2011-12
Branches Total number of branches declined by 12% - from 11,276 to 9,843 50% of the members shrunk their branch network AP MFIs: Branches decreased by 19% over FY 2010-11 12,000 10,000 8,000 13% 2010-11 2011-12 Non AP MFIs: Branches decreased by 5% 6,000 19% 5% 4,000 8 2,000 0 11,276 9,843 6,352 5,150 4,924 4,693 Pan India AP MFIs Non AP MFIs
Employees Total number of employees decreased by 20% 73% members (33) reduced their employee base 100,000 90,000 80,000 70,000 60,000 50,000 20% 2010-11 2011-12 40,000 30,000 20,000 28% 9% 9 10,000 0 85,894 68,976 48,856 35,149 37,038 33,827 Pan India AP MFIs Non AP MFIs
Total Assets, Net worth, CAR Overall industry CAR at a healthy 35% -marginal drop from the 37% level in FY 2010-11 Net worth declined by 16% owing to large write-offs by AP MFIs 250 200 Total Assets (Rs bn) Net Worth (Rs bn) CAR 37% 38% 37% 37% Total Assets declined by 11% 150 36% 36% 100 35% 35% 50 0 201.06 74.40 178.80 62.58 2010-11 2011-12 35% 34% 34% 10
Portfolio at Risk (PAR), % Non AP portfolios continue to perform well with PAR < 1% 50% 45% 40% AP MFLs Non AP MFLs Pan India 35% 49% 30% 25% 35% 20% 15% 10% 5% 0% 2010-11 2011-12 2010-11 2011-12 11 PAR>90-180days (%) PAR>180days (%)
Write-offs Total write-offs at Rs 17.79 bn (Rs 1,779 Cr) in FY 2011-12 5 MFIs (including 2 large AP MFIs) yet to finalize the write-offs amounts. Hence the final write-offs may be even higher 20,000 18,000 16,000 171% 2010-11 2011-12 188% AP MFIs: Write-offs increased by 188% over FY 2010-11 Non AP MFIs: Write-offs decreased by 45% Rs mn 14,000 12,000 10,000 8,000 12 6,000 4,000 2,000 0 6,553.17 17,790.00 6,076.41 17,526.25 476.75 476.75 45% 263.76 Pan India AP MFIs Non AP MFIs
Loan Outstanding per client Average Loan Outstanding per client marginally increased from Rs 6,582 to Rs 6,783 6,800 10% * Not adjusted for overlaps 6,750 6,700 6,650 6,600 6,550 13 6,500 6,450 6,582 6,783 2010-11 2011-12
% Change Clients and Loan Accounts For 62% of the member MFIs, clients and loan accounts decreased in FY 2011-12 200% 150% Clients Loan Accounts 100% 50% 0% 0 10 20 30 40 50-50% -100% 14
% Change GLP and Disbursements For 60% of the member MFIs, GLP and loan disbursements decreased in FY 2011-12 250% 200% Gross Loan Portfolio (GLP) Value of Loans Disbursed (during the period) 150% 100% 50% 0% -50% 0 10 20 30 40 50-100% -150% 15
% Change AP* vs Non AP MFIs Non AP MFIs tracking better than Pan India averages and AP MFIs on key parameters AP MFIs MFIs minus AP Pan India 30% 20% 10% Loan Amount Disbursed Gross Loan Portfolio(GLP) Loan Accounts Clients Employees Branches 0% -10% -20% -30% -40% %Change from last FY -50% -60% -70% -80% * 10 MFIs with significant AP portfolio included in the analysis are Asmitha, BSFL, Share, Spandana, Trident, L& T Finance, Trident, SWAWS, Nano and FFSPL. 16
Geographic Spread 8 8 7 7 7 7 5 Member MFIs present in 27 states 30 Stronger presence in states such as TN, MP, Maharashtra, Gujarat, Karnataka and Bihar Number of MFIs 25 20 15 10 24 1717 16151414 1212 111110 5 4 3 3 2 2 2 2 1 0 Tamil nadu Madhya Pradesh Maharashtra Gujarat Karnataka Bihar UttarPradesh Andhra Pradesh Rajasthan Orissa West Bengal Haryana Chattisgarh Delhi Assam Jharkhand Kerala Uttarkhand Pondicherry Punjab Meghalaya Tripura Chandigarh Goa Himachal Pradesh Sikkim Dadra Nagar Haveli 17
Branch Ratios (average) Key branch ratios have deteriorated Clients/Branch GLP/Branch (Rs mn) Loan Accounts/Branch Disbursement/Branch (Rs mn) 3,000 2,500 25.33 19.92 30 25 2,000 20 1,500 1,000 15.05 14.57 15 10 Rs mn 500 0 2,353 2,592 1,991 2,156 2010-11 2011-12 5 0 18
Employee Ratios (average) Marginal improvement in key employee ratios Clients/Employee Loan Accounts/Employee GLP/Employee (Rs mn) 340 2.16 2 19 330 320 310 300 290 280 1.91 302 334 307 331 2010-11 2011-12 2 2 2 2 2 2 2 2 2 GLP per employee (Rs mn)
Top MFIs Clients Top 10 MFIs by client base account for 82% of total industry client base 2010-11 2011-12 0 2 4 6 8 SKS mn Others 18% SKS 19% Bandhan Spandana Smile BSFL Share GV Ujjivan Asmitha 2011-12 Bandhan 16% Equitas Asmitha Ujjivan Equitas 5% Share 9% Spandana 15% GV BSFL 20 SMILE
Top MFIs GLP Top 10 MFIs by GLP account for 82% of total industry GLP Bandhan 2010-11 2011-12 0 10 20 30 40 50 37 Rs bn Others 18% Bandhan 24% Spandana Share 22 21 BSFL Janalakshmi GFSPL GV Ujjivan 5% Equitas 5% SKS 11% 2011-12 Share 14% Spandana 14% SKS Equitas Ujjivan GV GFSPL Janalakshmi 7 7 5 4 4 17 21 BSFL 3
Top MFIs Disbursements Top 10 MFIs by disbursements account for 81% of total industry disbursements 2010-11 2011-12 Janalakshmi ESAF GFSPL Equitas Ujjivan 5% GV 6% Others 19% Spandana 7% 2011-12 Share 8% Bandhan 31% SKS 14% Bandhan SKS Share Spandana GV Ujjivan Equitas GFSPL ESAF 0 20 40 60 80 100 63 27 16 15 11 11 7 6 5 Rs bn Janalakshmi 4 22
Top MFIs Branches Top 10 MFIs by branches account for 76% of the total industry branches 2010-11 2011-12 0 500 1,000 1,500 2,000 2,500 Others 24% Spandana 17% Spandana Bandhan SKS 1,674 1,553 1,461 Madura ASA Equitas Ujjivan GV Asmitha 6% 2011-12 Share 9% SKS 15% Bandhan 16% Share Asmitha GV Ujjivan Equitas ASA 529 327 299 265 215 914 23 Madura 211
Top MFIs Employees Top 10 MFIs by employees account for 77% of the total industry employee base SKS 2010-11 2011-12 0 5 10 15 20 25 Thousands 16 Others 23% SKS 24% Bandhan Spandana 8 10 Share 4 ESAF Equitas BSFL Asmitha GV 5% Ujjivan Share 2011-12 6% Spandana 12% Bandhan 14% Ujjivan GV Asmitha BSFL Equitas ESAF 3 3 3 2 2 1 24 GFSPL 1
GLP growth (YoY%) MFIs (GLP < 50 Cr) MFIs (GLP <50-100 Cr) Notwithstanding the operational challenges, a significant number of MFIs registered growth in GLP MFIs < 50 Cr MFIs >100-500 Cr MFIs > 50-100 Cr MFIs>500 Cr Fusion 182% Intellecash 147% Chaitanya 81% Disha 69% Samasta 20% Utkarsh 136% Suryoday 91% SVCL 58% Swadhaar 41% Arman 15% 7 MFIs (GLP>100-500 Cr) MFIs(>500 Cr) 2011-12 16 14 Distribution of members by GLP 8 25 Muthoot 141% Janalakshmi 138% GFSPL 52% Satin 5% ESAF 19% Bandhan 49% Ujjivan 13% Share 2%
Policy & Regulatory Milestones A series of major policy/regulatory announcements during FY 2011-12 April 2011 May 2011 July 2011 Oct 2011 RBI issues detailed directions for NBFC-MFIs including creation of NBFC MFIs category ECBs upto $10 mn permitted to NBFC- MFIs Dec 2011 Feb 2012 The Finance minister in his annual budget speech announces that Microfinance Bill will be tabled in the budget session of Parliament March 2012 MoF constitutes committee for drafting new Microfinance Bill RBI issues of detailed PSL guidelines covering loans to MFIs by Banks D r a f t M i c r o f i n a n c e Bill 2011 put in the public domain MoF constitutes committee for framing Vision Document for Financial inclusion 2020 26 Unified Code of Conduct for MFIs NBFC MFIs recognized as support organization for SHG II Program of GoI RBI gives relief to the industry by deferring implementation of asset classification and provisioning norms for NBFC-MFIs by one year to April 01, 2013
Key capital providers, 2011-12 Equity Debt (Bank) Debt (Non Bank) ANANYA 27
Members* Anjali Arman Arohan ASA Asirvad Asmitha Asomi Bandhan BSFL Chaitanya Disha Equitas ESAF Fusion FFSL Grama Vidiyal GFSPL Growing Opportunity Intellecash Janalakshmi Kaveri L & T Finance Madura Mimoza Muthoot Nano Sahayata Saija Samasta Sarvodaya Nano Satin Credit Shalom Share SKS Smile Sonata Spandana Suryodaya SVCL SWAWS Swadhar Trident Ujjivan Utkarsh Village Financial * These members contributed data for this publication 28