Microfinance

RBI's Financial Stability Report shows microfinance borrower indebtedness edged up in September 2025 after a two-year decline, even as credit and active borrowers fell in H1 FY26

Indian Bank's Sudhir Kumar Gupta outlines how credit, fintech partnerships and startup funding can help Uttar Pradesh move towards a $1 trillion economy

The RBI has flagged rising stress in microfinance loans, urging NBFCs to balance growth with sound practices, even as overall asset quality in the sector improved

IndusInd Bank says SFIO has launched an investigation under Section 212 and sought information after discrepancies were flagged in derivatives and microfinance accounting

Microfinance portfolios fall for the sixth straight quarter despite improved asset quality, as credit access tightens

India's microfinance sector saw its sixth straight quarterly decline in gross loan portfolio in Q2 FY26, with sustained funding squeeze pushing nearly 5 million borrowers out of formal credit systems

Sustained moderation in GLP and originations volume signals ongoing risk mitigation, while improvements in short-term delinquencies highlights progress in portfolio management

While the microfinance sector appears to be recovering from its latest stress cycle, liquidity support will be crucial to sustain the return path

Industry leaders at the Business Standard BFSI Insight Summit said that while collections and rural affordability are improving, liquidity support is critical to sustain the sector's ongoing recovery

Microfinance lender sees profit decline amid higher write-offs, but net interest income and margins show sequential improvement

NBFCs and fintechs are filling the gap left by cautious banks in micro lending, even as regulators monitor rising exposure and borrower indebtedness in the segment

The microfinance industry is in a bind as funding declines and fears of defaults swirl amid stricter regulatory scrutiny

The industry's fund crunch comes over lenders' fears of asset quality, repayment, and over-leverage, which ties in to the Reserve Bank of India's push for responsible lending

ICRA has downgraded SATYA Microcapital's ratings to BBB with a negative outlook, citing rising NPAs, weak collections, high credit costs and limited capital buffers

Data from insurers' annual reports show ICICI Prudential Life Insurance covered 91.74 million lives in FY25, down from 96.61 million in FY24

Fusion Finance plans Rs 200 crore recovery from stressed assets, redeploys staff for collections as NPAs ease and new customer share to rise by FY26

The total loans outstanding for the sector were ₹3.5 trillion in June 2025, down 16.7 per cent from June 2024, the data showed

Fusion Finance shares rose on improved Q1 performance, with lower credit costs, better asset quality, narrower losses, and stronger operational efficiencies

The lack of access to credit information leaves Section-8 MFIs in the dark about the worthiness of their clients, while allowing borrowers to exploit the arbitrage between Section-8 and mainline MFIs

CreditAccess Grameen's Q1 FY26 net profit dropped 85% YoY, attributed to lower net interest income and higher provisioning. However, sequentially, the profit rose by 27.5%