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Below the Quote on 'Navigating Challenges & Embracing Opportunities: An Outlook on the Micro-finance Industry of India' by Dr. Manoranjan Sharma, Chief Economist, Infomerics Ratings.

Key highlights of the report:

* Micro Finance Institutions (MFIs) have grown to be over a ?5 trillion industry

* Over 12 million Self-Help Groups (SHGs) exist with over 140 million women as members, each of whom represents a low-income home with over ?1.5 trillion in outstanding bank loans

* Maharashtra has the maximum SHGs at 15.15 lakh, followed by West Bengal (14.44 lakh),
Bihar (11.10 lakh), and Andhra Pradesh (10.81 lakh) for the period 2022-23

* The absolute level of NPAs under bank loans to SHGs reduced amounting to an overall decline of 9% from ?5,743.71 crore during FY22 to ?5,249.33 crore during FY23

* The Stand-Up India Scheme (SUPI) has facilitated credit of over ?43,000 Crore in setting up over 1.90 lakh Greenfield micro and small enterprises to SC/ST and women entrepreneurs 

The future of MFIs in India is a function of prudent financial management, technological innovation,

regulatory responsiveness, and a strong commitment to social impact. This may involve exploring new delivery channels, adopting emerging technologies, and adapting products to meet the evolving needs of clients. MFIs can do this by exploring and diversifying their product offerings beyond traditional microcredit.

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