Categories: State News

Bihar Surpasses Tamil Nadu as State with Highest Microlending Borrowings

Bihar has overtaken Tamil Nadu to become the state with the highest microlending borrowings in India as of March 2023, according to a report released. The report, published by credit information company Crif High Mark, highlighted Bihar’s impressive growth with a 13.5 percent increase in the gross lending portfolio during the March quarter compared to the previous quarter.

Bihar’s Impressive Growth in Microlending Sector Outshines Tamil Nadu

As of March 2023, Bihar’s microfinance (MFI) borrowings amounted to Rs 48,900 crore, accounting for 14.5 percent of the overall portfolio. Meanwhile, Tamil Nadu’s MFI borrowings stood at Rs 46,300 crore, representing 13.7 percent of the total outstanding. This significant shift in rankings reflects Bihar’s rising prominence in the microfinance sector.

Overall Microlending Portfolio in India Witnesses Significant Growth

The overall MFI portfolio outstanding witnessed substantial growth, reaching Rs 3.37 lakh crore by the end of March, reflecting a 17.9 percent increase. The report also highlighted an improvement in asset quality. The proportion of MFI loans overdue for over 90 days decreased to 1.1 percent in March 2023, compared to 2 percent in December 2022.

Among the top ten states, which collectively account for 85 percent of the outstanding portfolio, Bihar’s rise to the top was accompanied by Uttar Pradesh, Karnataka, West Bengal, Maharashtra, Madhya Pradesh, Odisha, Rajasthan, and Kerala. These states have experienced significant growth in microfinance borrowings, contributing to the overall strength of the sector.

Non-Banking Finance Companies Lead Microlending Market, Followed by Banks and Small Finance Banks

The report further revealed that the average exposure per borrower in Bihar was Rs 27,200, slightly higher than Tamil Nadu’s Rs 26,600. Additionally, the eastern region of India dominated the MFI landscape, representing one-third of the outstanding portfolio.

Dedicated non-banking finance companies (microfinance institutions) continued to hold the largest share in the market, commanding 37.3 percent of the overall MFI loans. Banks followed closely at 33.1 percent, while small finance banks accounted for 16.6 percent of the market.

Important takeaways for all competitive exams: 

  • Bihar Chief minister: Nitish Kumar;
  • Bihar Governor: Rajendra Arlekar;
  • Bihar Capital: Patna.

Find More State In News Here

Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

Recent Posts

Ministry of Minority Affairs Celebrates 11 Years of Seva, Good Governance, and Welfare Under Modi Government

The Ministry of Minority Affairs (MoMA) celebrated a significant milestone, marking 11 years of Seva,…

5 mins ago

Indian Railways and BHASHINI Forge Strategic Partnership to Bring Multilingual AI to Railway Services

In a milestone step towards enhancing linguistic inclusion and promoting AI-driven digital transformation within India’s…

15 mins ago

India Celebrates World Accreditation Day 2025

The Quality Council of India (QCI), India’s apex body for establishing and promoting quality standards…

28 mins ago

Which is the Oldest District of Uttar Pradesh? Know the Name

Uttar Pradesh is a large and important state in northern India. It has many districts,…

16 hours ago

Birsa Munda Punyatithi 2025, 125th Death Anniversary of Birsa Munda

Birsa Munda Punyatithi is observed every year on June 9 to remember and honour Birsa…

17 hours ago

Eminent Scholar Daji Panshikar Passes Away at 92

Renowned scholar, author, and literary commentator Daji Panshikar, also known as Narahari Vishnu Shastri, passed…

18 hours ago