Micro Finance Industry Network (MFIN)’s 57th edition of Micrometer for Q4 FY 25-26 based on the industry position as on March 31, 2026

Posted By: William June 12, 2026

 

Dr. Alok Misra, CEO & Director, MFIN observed, “We can now say that despite the tough 2 years, Industry is turning the corner as evidenced by uptick in portfolio and continued improvement in Portfolio at Risk – PAR 31-180 declining to 2.0% as of March 2026 compared to 6.3% a year ago. A significant policy development which will further strengthen this recovery is the CGSMFI 2.0 scheme of Government of India. Recent extension of the scheme till August 2026 will allow sufficient time for utilisation. The sector is grateful to the Government, and the sector has done its part also by way of improved performance metrics riding on MFIN Guardrails, it is time for banks to come forward and actively support the cause of financial inclusion.


While these positive factors augur well for the sector in 2026-27, MFIN has also advised the players to keep in consideration the likely impact of lesser than average monsoon prediction and West Asia conflict as these may affect rural livelihoods.”

 

Some highlights of this quarter/ financial year are as under:

 

  • As on 31 March 2026, 3.4 Cr clients* have loan outstanding from NBFC-MFIs, which is 15.8% lower than number of clients as on 31 March 2025.
  • The Asset Under Management (AUM) of MFIs is Rs 1,47,331 Cr as on 31 March 2026, including owned portfolio of Rs 1,23,236 Cr and managed portfolio (off BS) of Rs 24,095 Cr. The owned portfolio of MFIN members is 85.8% of the NBFC-MFI universe portfolio of Rs 1,43,586 Cr
  • AUM increased by 4.7% compared to 31 March 2025 and by 10.2% compared to 31 December 2025
  • Loans amounting to Rs 1,20,338 Cr were disbursed in FY 25-26 through 2.0 Cr accounts, including disbursement of Owned (Rs 1,17,578 Cr) as well as Managed portfolio (Rs 2,760 Cr). Overall disbursement is 12.3% higher than the amount disbursed in FY 24-25.
  • Average loan amount disbursed per account during FY 25-26 was Rs 59,553 which has increased by around 18.4% compared to last financial year.
  • As on 31 March 2026, the borrowings O/s were Rs 1,06,947 Cr. Banks contributed 65.9% of borrowings O/s followed by 14.1% from Non-Bank entity, 11.2% from External Commercial Borrowings (ECB), 5.0% from AIFIs and 3.9% from other sources.
  • During FY 25-26, NBFC-MFIs received a total of Rs 77,870 Cr in debt funding, a 30.9% increase from FY 24- 25. Banks contributed 77.4% of the total borrowings received followed by Non-Bank entities 12.2%, ECB 4.6%, Others 3.9% and AIFI 1.9%.
  • Total equity increased by 6.7% as compared to end of FY 24-25 and is at Rs 36,700 Cr as on 31 March 2026.
  • Portfolio at Risk PAR 31-180 days as on 31 March 2026 has improved to 2.0% as compared to 6.1% as on 31 March 2025.
  • MFIs have presence in 26 states and 6 union territories.
  • In terms of regional distribution of portfolio (AUM), East and North-East account for 33% of the total NBFCMFI portfolio, South 27%, North 16%, West 15%, and Central contributes 9%.