Microfinance sector sees 16.5% annual decline in Sep gross loan portfolio

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

The gross loan portfolio (GLP) in the microfinance sector fell 16.5 per cent year-on-year (Y-o-Y) to Rs 345.6 trillion in September 2025, which is also a decline of 6.3 per cent quarter-on-quarter (Q-o-Q). Credit bureau CRIF High Mark, in the latest edition of its quarterly publication MicroLend, noted that during this period, there was an improvement in portfolio quality with delinquencies in 1-180 days-past-due (DPD) segment falling to 5.99 per cent or 42 basis points (bps) on a Y-o-Y basis and 107 bps Q-o-Q, but the same in the 180-plus DPD was up 15.31 per cent, up sharply by 971