Midland Micro Finance Unlisted Shares

About Company

Midland Microfin Limited (MML), incorporated in 2011, is the first Punjab-based microfinance institution registered as an NBFC–MFI with the Reserve Bank of India (RBI). The company’s core objective is financial and social empowerment of women, primarily through small-ticket business and livelihood loans.

As of FY21, MML operates through a strong physical network of 217 branches across multiple states and Union Territories, including Punjab, Haryana, Rajasthan, Uttar Pradesh, Bihar, Gujarat, Jharkhand, Himachal Pradesh, and Chandigarh. The company follows a stringent lending and recovery framework, which has helped it maintain strong asset quality even during challenging periods such as demonetisation and COVID-19.

MML has completed over 10 years of operations, growing from a single branch to serving over 4 lakh women borrowers, largely in rural and semi-urban India.

Business Model & Loan Products

The following explains Midland Microfin Limited’s operating and lending model.

Midland Microfin follows a Joint Liability Group (JLG) and individual lending model focused on income-generating and essential livelihood activities.The following are the key loan products:

Business Loans

• Ticket size: ₹11,000–30,000 and ₹31,000–50,000
• Tenure: 1–2 years
• Interest rate: 25.20%

Water Purifier Loans

• Ticket size: ₹4,200–8,500
• Tenure: 6, 9, and 11 months
• Interest rate: 25.20%

Sewing Machine Loans:

• Ticket size: ₹3,520
• Tenure: 6, 9, and 11 months
• Interest rate: 25.20%
• Offered in collaboration with Greenlight Planet India Pvt Ltd

Solar Lamp Loans:

• Ticket size: ₹2,899
• Tenure: 6, 9, and 11 months
• Interest rate: 25.20%
• Offered under the “Beyond Microfinance” initiative

Udaan Individual Loan

• Ticket size: ₹60,000–1,00,000
• Tenure: 2 years
• Interest rate: 25.20%
• Offered to existing customers for business expansion

Geographic Presence

The following outlines Midland Microfin Limited’s operational footprint.

• Services extended to 15,734 villages across India
• Regional Offices established in Jaipur, Chandigarh, Varanasi, and Patna
• State-wise loan portfolio concentration (as of FY21):
  • Punjab: ₹1,805 Cr
  • Bihar: ₹650 Cr
  • Rajasthan: ₹627 Cr
  • Haryana: ₹400 Cr
  • Uttar Pradesh: ₹242 Cr
  • Jharkhand, Gujarat, HP: Smaller exposure

Financial Review (FY19–FY24)

The following provides a consolidated financial performance summary of Midland Microfin Limited.

• Total Assets:
  • ₹748 Cr as of March 31, 2019
  • Increased to ₹1,100 Cr by March 31, 2021, reflecting strong balance-sheet expansion
• Loan Portfolio:
  • ₹350.79 Cr in FY18
  • ₹549.07 Cr in FY19 (56.53% growth)
  • Cumulative disbursements of ~₹3,800 Cr by March 31, 2021
• Income & Profitability:
  • FY21 Gross Income: ₹192 Cr (4.45% YoY growth)
  • FY21 PAT: ₹14.6 Cr, lower YoY due to higher COVID-related provisions
• Capital Adequacy:
  • CRAR consistently above regulatory minimum
  • CRAR: 23.32% (FY19)
  • Tier-I CRAR improved to 18.19%
  • Capital infusion of ₹40 Cr supported growth and expansion
• Asset Quality:
  • FY19 Gross NPA: 0.47%, Net NPA: 0.04%
  • FY21 Gross NPA increased to 1.69% due to COVID impact
  • Collection efficiency remained strong at ~99%

Credit Strengths

The following highlights Midland Microfin Limited’s key strengths.

• Strong rural focus reduced COVID-19 impact
• High exposure to essential services like dairy and agriculture
• Disciplined underwriting and recovery mechanisms
• Healthy capital buffers supporting branch expansion
• Experienced promoter background in asset financing

Challenges

The following outlines key risks and challenges for Midland Microfin Limited.

• Temporary stress on asset quality due to COVID-19
• Regulatory changes affecting NBFC-MFI sector
• Geographic concentration risk in certain states
• Dependence on rural economic stability and monsoons

Quick Summary

This section summarises Midland Microfin Limited in brief.

• RBI-registered NBFC–MFI focused on women empowerment
• Strong rural and semi-urban presence
• Over 4 lakh borrowers and 217 branches
• Healthy capital adequacy and disciplined asset quality
• Promoted by an experienced financial services entrepreneur