MFI portfolio shrinks 17% in FY24, shows signs of stabilization in Q4

Microfinance lenders saw stabilization in the March 2026 quarter. The industry’s portfolio shrank year-on-year but grew sequentially. Lending shifted to existing borrowers. Borrower leverage moderated across key states. Loan sizes increased. Asset quality showed mixed trends with improved 30+ days past due rates but intensified stress in older loan cohorts.