Monday, May 25, 2020 | Last Update : 11:46 AM IST

62nd Day Of Lockdown

Maharashtra50231146001635 Tamil Nadu162778324112 Gujarat140636412858 Delhi134186540261 Rajasthan70283848163 Madhya Pradesh66653408290 Uttar Pradesh62683538161 West Bengal36671339272 Andhra Pradesh2780184156 Bihar257470211 Karnataka208965442 Punjab2060189840 Telangana1854109253 Jammu and Kashmir162180921 Odisha13365507 Haryana118476516 Kerala8485206 Assam393584 Jharkhand3701484 Uttarakhand317583 Chandigarh2621794 Chhatisgarh252640 Himachal Pradesh203594 Tripura1941650 Goa66160 Puducherry41120 Manipur3220 Meghalaya14121 Arunachal Pradesh210 Mizoram110 Sikkim100

Room for strong growth for microfinance in India: KPMG

PTI
Published : Dec 19, 2019, 11:49 am IST
Updated : Dec 19, 2019, 11:50 am IST

Eastern and northeastern regions of the country have played a key role with the highest share of loan portfolio at 35 per cent.

Microfinance is growing at 48 per cent CAGR in the last five years, there is still room for growth given that microfinance penetration is 25 per cent of the addressable market, KPMG India national head (Financial Services) Gayathri Parthasarathy said in the report. (Photo: Representational)
 Microfinance is growing at 48 per cent CAGR in the last five years, there is still room for growth given that microfinance penetration is 25 per cent of the addressable market, KPMG India national head (Financial Services) Gayathri Parthasarathy said in the report. (Photo: Representational)

Kolkata: Microfinance sector which grew at a compounded rate of 48 per cent in the last five years has a potential for further growth as its penetration is only one-fourth of the addressable market, a KPMG report said.

Eastern and northeastern regions of the country have played a key role with the highest share of loan portfolio at 35 per cent.

"Microfinance is growing at 48 per cent CAGR in the last five years, there is still room for growth given that microfinance penetration is 25 per cent of the addressable market," KPMG India national head (Financial Services) Gayathri Parthasarathy said in the report.

Microfinance players have also been actively pursuing activities beyond lending to meet their social objectives and improve their margins, it said. "This also calls for changes in the operating model, product portfolio, partnership models and delivery capabilities of the players," Parthasarathy said.

Microfinance growth over the last four to five years has been driven by geographical expansion. Various players in this space are opting to integrate technology and collaborate with fintech players across the value chain primarily to optimise costs and reduce portfolio risk, the report said.

Tags: microfinance, loan portfolio, kpmg, growth, economy, technology, fintech, finance
Location: India, West Bengal, Calcutta [Kolkata]