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Microfinance growth driven more by lenders' loan disbursement than demand

Borrowers are being chased by different kinds of lenders -- universal banks, small finance banks, NBFCs, MFIs and fintechs

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Growth in the sector appears driven more by lenders’ obsession to disburse loans rather than by borrower demand. Photo: Shutterstock

Tamal Bandyopadhyay

7 min read Last Updated : Sep 29 2024 | 4:29 PM IST

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Fusion Finance Ltd, a listed microfinance company, recently said that it might need to make an additional provision of Rs 500-550 crore in the September quarter of 2024-25 (FY2025) to address rising bad loans. In the first quarter, Fusion had made a provision of Rs 348 crore.

In a stock market filing on September 21, Fusion stated: “Since the release of the Q1 FY25 results, the management of the company has been focused on tracking the evolving credit behaviour of its borrowers. … Based on trends thus far… it is likely that the company may be required

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Topics : Microfinance microfinance industry microfinance firms microfinance institutions

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