Banking #microfinance#portfolio
India's MFI Portfolio Contracts 17% in FY24 but Shows Stabilization Signs in Q4
India's microfinance sector saw its total portfolio shrink 17% year-on-year to Rs 2,77,053 crore as of March 31, 2026, according to the MFI Pulse Report by Equifax and SIDBI. However, a 3% quarter-on-quarter growth in Q4 marks the first sequential expansion in several quarters, indicating early signs of stabilization. The report also highlights a shift towards existing borrowers, moderating leverage in key states, and rising loan sizes, while asset quality shows improvement in near-term delinquencies but rising stress in older loan cohorts.
Jun 17, 2026 1 source