ISLAMABAD: State Bank of Pakistan (SBP) revealed that Microfinance Banking Industry witnessed a surge in growth of 52.5pc during last financial year 2016-17.
According to the central bank, microcredit portfolio rose 53.5pc to touch Rs111.9b at end of FY 2016-17 compared to Rs72.86b in same period last year (SPLY). Microfinance banks (MFBs) registered a rise in number of borrowers of 29.9pc compared to SPLY.
Their asset base also jumped up by 52.5pc to touch Rs203.3b by end of FY 2016-17 against Rs133.324b in SPLY. MFBs put in fresh equity of Rs5.25b during FY 2016-17, which contributed to a growth in overall equity base of 23.2pc, touching Rs27.9b compared to Rs22.7b in SPLY.
Deposits base of MFBs posted an impressive growth of 68.3pc during FY 2016-17, with the total deposit base reaching Rs146.5b against Rs87b for SPLY. And number of depositors surged by 71.7pc to touch 21.951m compared to 12.782m in SPLY, reported a local newspaper.
This growth was attributed to increase in amount and number of depositors to a rising level of M-wallet accounts energized by Mobilink Microfinance Bank (MMFB). In FY 2016-17, MMFB provided a lion shares of contribution 84.1pc (7.7m) of 9.1m deposits mustered by MFBs.
Microfinance sector has 51 institutions providing such services, out of which eleven are deposit taking MFBs licensed by SBP and 40 are non-bank microfinance providers given licences by Security and Exchange Commission of Pakistan (SECP).
MFBs expanded its microcredit services to over 5.202m low-income borrowers by end of FY 2016-17, recording a rise of 25pc from 4.161m in SPLY. An increase of 57pc (or Rs62.127b) was witnessed in gross loan micro-credit portfolio touching Rs171b against Rs108.8b in SPLY.
And average loan balances also rose by Rs6,703 to touch Rs32,868.
