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Signs of recovery in microfinance sector
June 13, 2026
|Financial Express Bengaluru
Loan portfolio grows for first time after seven quarters
AFTER SEVEN QUARTERS of contraction, the microfinance sector’s gross loan portfolio (GLP) posted a sequential growth of 3% to ₹3.25 lakh crore in Q4FY26, aided by a sharp recovery in disbursements and improving asset quality.
On a year-on-year (y-o-y) basis, however, the sector’s GLP remained 13% lower than ₹3.75 lakh crore reported in March 2025, according to the 57th edition of Micrometer for Q4FY26 released by Microfinance Industry Network (MFIN), a self-regulatory body for the sector.
Microfinance loan disbursements rose 28% quarter-on-quarter (q-o-q) to a seven-quarter high of ₹77,524 crore in Q4FY26. The industry had last witnessed higher quarterly disbursements in Q4FY24, when it reported a record ₹1.07 lakh crore.
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