A “centre leader” counts money to be distributed as a micro-loan at a meeting organized by a microfinance institution in Sadasivpet, India. (Photographer: Adeel Halim/Bloomberg)

Equitas Small Finance Bank Eyes 30-35% Growth In Microfinance Portfolio

Equitas Small Finance Bank expects its microfinance portfolio to grow at 30-35 percent over the next few years, Raghavan HKN, president of outreach and inclusive banking told BloombergQuint. Contribution of the micro-finance portfolio stands at 28 percent.

The Chennai-based microfinance lender reported a 405 percent jump in net profit to Rs 34.9 crore for the March quarter, as asset quality stabilised. Gross bad loan ratio fell to 2.72 percent from 4.95 percent in the December quarter. Raghavan expects a decline to 1.8-2 percent in the coming quarters.