Microfinance sector shows signs of recovery as NPAs stabilise in Q3

January 26, 2026

Microfinance lenders are showing signs of recovery after a prolonged bad loan cycle. Leading institutions like Bandhan Bank, Ujjivan Small Finance Bank, and CreditAccess Grameen reported stable non-performing assets and improved margins. This performance suggests a normalization of business, offering relief to stakeholders and indicating a positive outlook for the sector.

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The Reserve Bank of India has introduced measures to boost foreign currency inflows, including incentives for external commercial borrowings and bearing hedging costs on FCNR(B)

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