Microfin begins to recover, but full health is still far

Profitability remains under pressure and growth still appears far due to uneven recovery across states and lenders.

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more than 180 days, citing the need to clean up the legacy stress. Its portfolio at risk (PAR) for borrowers with four lenders stood at 15.1%, higher than 14.3% as of June-end, suggesting delinquencies have largely stabilized

“Across the sector, most large players in this space have shrunk their books by 25-50% in the past two years. They call it cautious deleveraging, but in reality, much of the book reduction has come through write-offs,” said Jinay Gala, director at India Ratings and Research.

Experts also believe that the decline in the days-past-due book at most len-