Motilal Oswal - MOSL: FINANCIALS-Microfinance loan growth robust, but ticket size increase reflects caution

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Motilal Oswal

Nitin Aggarwal

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MOSL: FINANCIALS-Microfinance loan growth robust, but ticket size increase reflects caution

Financials: Microfinance loan growth robust, but ticket size increase reflects caution; Concentration risk rising as top-30 districts account for 24% of total MFI loans

Despite the economic slowdown, the gross loan portfolio growth in the microfinance industry is robust at 48% YoY, according to MFIN’s latest release.
Top-5 key states account for ~55% of the total microfinance loans while the top-30 districts account for ~24% of the total portfolio.
During FY16-19, MFI loans disbursed in the INR50-60k ticket size bucket saw 55% CAGR while those in the INR60k+ ticket size bucket registered sharp 108% CAGR. Thus, increasing ticket size per borrower reflects caution in the sector.
West Bengal has the highest average ticket size per borrower at INR54k followed by Assam/Tamil Nadu at INR52k/INR43k.

02/12/2019 8 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Nitin Aggarwal

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MOSL: FINANCIALS-Microfinance loan growth robust, but ticket size increase reflects caution

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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