M-CRIL India Indices of Microfinance 2012: Measures of the Performance of 24 of the Largest MFIs in the Country

M-CRIL India Indices of Microfinance 2012 measures the performance of 24 of the largest MFIs in India. The measures are based on two indices. The first, CRILEX, is a composite index of MFI growth. It uses information on the numbers of borrowers and the size of loan portfolio of the 24 largest MFIs. The second, FINEX, is a composite index of MFI performance. It uses information on the portfolio at risk (>30 days) and the return on assets of M-CRILs 24 MFIs. The indices show that the 24 largest MFIs in India declined by 21% during the year 2011-12 and by 30% relative to October 2010. Findings include:

• CRILEX had fallen to 6,290 by March 31, 2012;
• Borrower coverage declined by 27% and portfolio by 18% in 2011?12 after adjusting for multiple lending;
• Of the five largest MFIs in the country, the four with operations in Andhra Pradesh (AP) recorded a combined decline of over 60%;
• Average financial performance has declined drastically from 2009-10;
• FINEX has declined to -520 at the national level but non-AP MFIs still managed a reasonable financial performance similar to the 2002-03 level.