Microfinance Industry

While Provisions bill dips; income flows stay subdued

RBI Deputy Governor Swaminathan J says India's financial system needs both the innovation and speed of T20 cricket and the discipline and longevity of Test cricket

According to sources, the bank may consider selling more such loan pools if the current portfolios receive strong interest from ARCs

Microfinance institutions (MFIs) need to rebuild credibility and confidence to achieve sustainable growth, a joint study by consultancy firm PwC and Sa-Dan, a self-regulatory organisation (SRO) of the sector, said. Microfinance, which is principally underpinned by trust among the stakeholders, who are the borrowers, field officers and lending institutions, has become more transactional, the study said. Major setbacks like demonetisation and the Covid pandemic have further exacerbated the decline in group culture in microfinance, which has had a widespread impact on repayment discipline and public confidence, the study pointed out. "Rebuilding credibility and confidence remains a major challenge to achieving sustainable growth", the study said, adding that empowering and equipping customers with adequate information is crucial in regaining their trust. According to the study, MFIs have also experienced declining support from external stakeholders, including investors and refinancers

In the quarter ending September 30, 2025, microfinance institutions (MFI) clocked a growth of almost 4 per cent, with quarterly lending at ₹7,258 crore

After quarters of liquidity stress and high delinquencies, India's microfinance sector shows revival signs, though experts say sustained recovery depends on stronger bank and government support

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

While SFBs have grown rapidly over the past few years, their microfinance portfolios have affected asset quality

AU, Ujjivan, and Jana Small Finance Banks increase share of secured assets in line with RBI's diversification guidelines for voluntary conversion to universal banks

Shifting to a system of risk-based deposit insurance may over time force banks to become even more prudent and mindful of their finances

Ashok Hariharan, founder of IDfy, interacted with Raghu Mohan via email on issues in retail onboarding and underwriting

Micro-ATM operators have sought a revision in transaction fees, urging the government to align their payouts with those of legacy ATMs amid rising volumes and decade-old stagnant pricing

Jio Financial Services posted Rs 695 crore in net profit for Q2FY26, driven by a fivefold rise in business income and 12x growth in AUM amid strong traction across digital finance units

Despite a profit decline due to standard asset provisions, Axis Bank's asset quality improved and loan growth remained steady in Q2FY26

According to the central bank, it had received three applications to be recognised as self-regulatory organisations in the NBFC space, including that of the FIDC

The brain finds it comfortable to shut down when faced with too much complexity. To fix that, we have to simplify, even if that requires a small sacrifice in accuracy

The fall in new delinquencies in the microfinance industry has slowed, delaying recovery by a quarter, with meaningful earnings growth expected only from Q4 FY26 or FY27

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

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

The sector is ready to make amends, but it needs money to remain in business. If banks don't loosen the purse strings, things will worsen