Microfinance portfolio shrinks 5% YoY to Rs 3.28 trillion in September

The microfinance portfolio declined 5 per cent year-on-year (YoY) to Rs 3.28 trillion as of September 2026, while the number of active loans fell 22.4 per cent to 9.6 crore, indicating a continued contraction in the sector’s lending base. 

The live customer base declined 15 per cent YoY to 6.4 crore. On a sequential basis, the portfolio contracted 1.4 per cent, while active loans and the live customer base fell 6.5 per cent and 3.9 per cent, respectively. 

Disbursements during the September quarter stood at Rs 56,956 crore across 90.3 lakh loans, compared with Rs 61,600 crore across 99.2 lakh loans in the preceding quarter. 

Asset quality indicators showed some improvement in the 91-180 days past-due category, with the share declining to 0.8 per cent in September 2026 from 2.7 per cent a year ago. It remained unchanged from the June 2026 level.