Microfinance

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

Is the worst over for Microfinance Institutions in the current cycle? | Banking sector | BFSI Summit

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

Worst is over but liquidity support remains a key concern, say MFI chiefs

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

CreditAccess Grameen Q2 net profit falls 32% on higher provisions

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

NBFC and fintechs' micro loan play catches regulatory attention

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

Microfinance sector faces funding crunch, default fears amid scrutiny

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

MFIs see funding fall over 50% in FY25 to Rs 58K crore, seek support line

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 downgrades SATYA Microcapital to 'BBB', outlook revised to 'Negative'

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

Top four life insurance companies covered 14 mn fewer lives in FY25

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 eyes Rs 200 cr recovery from stressed assets in 12 months

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 gains over 4% as Q1 results show asset quality boost

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

RBI to consider giving Section-8 MFI firms' access to credit bureaus

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

MFI CreditAccess Grameen Q1 net profit down 85% on higher provisions

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%

Borrower indebtedness in microfinance declines to 11.7%: RBI report

Despite rising stress in microfinance portfolios, RBI notes decline in borrower indebtedness as tighter underwriting and regulatory caps limit over-lending

Happy as NBFC unless there's glide path to becoming a bank: Umesh Revankar

Microfinance can never be a sunshine sector because every 5-6 years it gets into some kind of challenges, says Revankar

Microfinance credit quality dips in FY25; NPAs rise to ₹55,000 crore

Microfinance sector sees worsening credit metrics in FY25 with PAR 31-180 and NPAs rising sharply amid disbursal decline and external disruptions, says MFIN

Microfinance loan disbursal falls 25% to ₹1.12 trillion in FY25

Loan disbursed by microfinance institutions (MFIs) have declined by 25 per cent to Rs 1.12 lakh crore in FY25 reflecting stress in the sector. Loan amount of Rs 1,12,459 crore was disbursed in 2024-25 through 2.2 crore accounts, including disbursement of owned as well as managed portfolio, Microfinance Institution Network (MFIN), an umbrella body of the microfinance institutions (MFIs), said in its report released on Wednesday. MFIs loan disbursement in FY25 was 25.4 per cent lower than the amount disbursed in 2023-24, it said. However, the average loan amount disbursed per account during FY25 was Rs 50,131 which increased by 12.3 per cent in comparison to the last financial year. During the year, the report said, NBFC-MFIs received a total of Rs 57,307 crore in debt funding, a 35.7 per cent decrease from previous year. Banks contributed 78.4 per cent of the total borrowing received followed by non-bank entities 11.9 per cent, ECB 5.1 per cent, All India Financial Institution 3.1

Microfinance in vicious cycle of debt, high rates, warns RBI deputy guv

RBI Deputy Governor M Rajeshwar Rao warns of high interest rates, borrower over-indebtedness, and coercive recovery in India's microfinance sector, calls for urgent lender reforms

MFI stress to be steady in next few quarters: RBI Deputy Governor

RBI relaxes qualifying criteria for NBFCs to be treated as MFIs

Microfinance: Indicators show cautious lending, continuing stress in parts

Amid these shifts, CRIF High Mark emphasised that the sector remains on a path of long-term sustainability