Microfinance stress takes toll on FY25 profits
Microfinance institutions are facing significant stress, with listed MFIs reporting losses or decreased profits in the March quarter due to factors like deteriorating asset quality and rising credit costs. The sector's GNPA ratio has surged to 16%. Despite these challenges, a conservative projection estimates a growth of 12-15% for the microfinance sector in FY26.
Microfinance institutions are facing significant stress, with listed MFIs reporting losses or decreased profits in the March quarter due to factors like deteriorating asset quality and rising credit costs. The sector's GNPA ratio has surged to 16%. Despite these challenges, a conservative projection estimates a growth of 12-15% for the microfinance sector in FY26. What's Your Reaction?
