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Listed MFIs slash Q2 losses to ₹61.8 crore amid sharp drop in provisions

While Provisions bill dips; income flows stay subdued

Microfinance
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The provision and write-offs expenses, amount set aside for stress assets in compliance with regulations and clean up, declined by 40.1 per cent Y-o-Y to ₹1,150.2 crore in Q2FY26 from ₹1,918.7 crore in Q2FY25.

Abhijit Lele Mumbai
The listed microfinance institutions (MFIs) as a group cut their losses substantially to ₹61.8 crore during the second quarter ended September 2025 (Q2FY26) from losses worth ₹229 crore in the same quarter year ago on sharp reduction in provision and write-off bill. 
Sequentially also, the non-banking finance companies working as MFIs reduced their losses compared to ₹341 crore in the first quarter ended June 2025 (Q1FY26), according to analysis of five NBFC-MFIs by BS Research. 
Conscious low growth impacts income generation 
The operating income, which predominantly covers interest income, declined by 15.5 per cent year-on-year (Y-o-Y) basis to ₹3,501.9 crore