Microfinance disbursals, repayments picking up

January 7, 2026

The microfinance sector is showing signs of a turnaround, with several small finance banks and NBFC-MFIs reporting increased business volumes and improved repayments. While some lenders are experiencing growth, others, particularly smaller ones, continue to face challenges. The overall market has contracted, with Bandhan Bank actively cleansing its balance sheet by selling non-performing loans.

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