Bad to worse: Microfinance sector NPAs hit ₹50,000 crore at the end of December last year

February 27, 2025

Non-performing assets in the microfinance sector soared to ₹50,000 crore at the end of December, reaching a 13% ratio of gross loans. The sector faced elevated stress from over-lending and deteriorating credit discipline, despite regulatory measures to lower capital allocation requirements for risky assets.

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