01:50
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LAHORE:
Despite the economic slowdown, savings of the country’s microfinance
sector have registered an upward trend during April-June 2012, according
to MicroWATCH, a quarterly monitoring report of Pakistan’s microfinance
sector.
As per the report, in the second quarter of
the calendar year 2012, savings dominated the microcredit sector, which
proved to be a main driver of sectoral growth in Pakistan.
Savings
increased by almost Rs3 billion, from Rs15.2 billion in the last
quarter to Rs18.3 billion by the end of second quarter. Microfinance
bank (MFB) deposits increased to Rs16.6 billion from Rs13.6 billion in
the preceding quarter. The increase was led by Khushhali Bank (KBL)
whose deposits increased by Rs1 billion, followed by the First
Microfinance Bank Ltd. and Tameer Microfinance Bank Ltd. (TMFB), which
added Rs0.6 billion and Rs0.5 billion, respectively.
The
average savings balance increased by 11 percent from Rs3,828 in the
preceding quarter to Rs4,235 in the second quarter of the year.
The
average savings balance of the MFB continues to dominate the peer group
with a size of Rs10,694. While the MFB has a 91 percent share of
savings in terms of value, the Rural Support Programme (RSP) has the
maximum number of savers, i.e. 62 percent of active savers. This is
reflected by the dominant market share of the rural active savers who
account for 79 percent of the total active savers.
The
microfinance industry in the country consolidated the increase in
microcredit outreach witnessed in the first quarter of the year. The
number of active borrowers grew slightly by 0.47 percent; however, the
Gross Loan Portfolio (GLP) grew by 4.5 percent from Rs32.4 billion in
the preceding quarter to Rs33.9 billion with the average loan size
increasing to Rs22,373 from Rs21,143. This trend of growth in GLP being
ahead of growth in number of active borrowers has now been seen for the
past three quarters, causing average loan sizes to be pushed up.
The
growth in MFBs was more of a factor increasing loan sizes, which
increased by 15 percent to close at Rs26,761, whereas the RSP showed the
most increase in outreach among the three peer groups with a growth of
5.3 percent. GLP for RSPs increased by 11.1 percent from Rs6.1 billion
in the last quarter to Rs6.8 billion. KBL continues to be the largest
provider of microcredit in terms of active borrowers and TMFB remains
the largest in terms of GLP.
Insurance continues to
exhibit a volatile trend. Over time micro insurance has not been able to
smoothen out this volatility factor. Despite an increase in the last
quarter, this quarter saw a decrease of one percent in the number of
policyholders but a 2.4 percent increase in the sum insured. Credit life
insurance continues to dominate over health insurance with a 70 percent
share up from 68 percent in the last quarter. In addition, RSPs, mainly
on the back of NRSP, remain the largest provider of micro-insurance
among the peer groups with a 40 percent share and also, the largest
provider in terms of the sum insured with a share of 46 percent.
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