Loan disbursement by microfinance institutions (MFIs) rebounded in the last fiscal year (FY) of 2020-21 as demand grew thanks to the ongoing recovery of economic activities from pandemic-induced shocks.

MFIs disbursed Tk 151,209 crore in FY21, up 11 per cent from Tk 136,275 crore a year ago.

During the 2018-19 fiscal year, the disbursement was Tk 140,600 crore, according to a paper presented by Mohammad Yakub Hossain, director of the Microcredit Regulatory Authority (MRA), at a workshop on Wednesday.

The MRA organised the event to discuss the publication of the annual statistics of microfinance in Bangladesh at the Centre on Integrated Rural Development for Asia and the Pacific in Dhaka.

Some 3.50 crore marginal people have come under the services of 740 MFIs with 22,000 branches, he added.

At the event, Md Fashiullah, executive vice-chairman of the MRA, said his organisation is set to publish the annual statistics under its new name "Microfinance in Bangladesh" instead of the current "NGO-MFIs" by May this year. It will contain an extensive version of the information on microfinance in the country.

"Along with microfinance, we will also include information related to microfinance provided by different government bodies, non-government organisations, Grameen Bank and commercial banks," he added.

Sheikh Mohammad Salim Ullah, secretary of the Financial Institutions Division of the finance ministry, said MFIs should disburse loans to low-income people instead of lending to comparatively well-off families so that poor people can get out of poverty.

At the event, the MRA also launched a mobile app to facilitate communication and make information regarding microfinance more available.