Micro Finance Industry Network (Mfin) Releases The 53rd Edition Of Micrometer For Q4 Fy 24-25 Based On The Industry Position As On March 31, 2025.

Micro Finance Industry Network (MFIN) is an industry association of Banks, NBFC-MFIs, SFBs and  NBFCs providing microfinance and an RBI-recognized self-regulatory organization. 

Micrometer is the flagship publication of MFIN which covers progress of Indian Microfinance  industry on a quarterly frequency, this is the 53rd Issue. 

Dr Alok Misra, CEO & Director observed, last year (FY 24-25) has been a tough year with multiple factors like heatwave, external incitement, concerns on overleveraging, Karnataka issue etc. affecting credit quality. Consequent to that funding to the sector also shrinked. As a result, credit  costs went up and GLP fell. However, with adoption of guardrails issued by MFIN by the sector,  credit quality is getting better with PAR 1-90 of the industry at 4.22% as on 31 March 2025 

Report insights 

As on 31st Mar’25, microfinance operations are spread across 36 states/UTs and 718 districts  providing financial services to around 7.8 crore unique clients. The data for Q4 FY 24-25 shows that  on a YoY basis the portfolio has degrown by 13.5% amounting to Rs 3,75,030 Cr. Among the  regulated entities active in microfinance space, portfolio of all entity types degrew except NBFCs  which has grown by 4.1%. on a YoY basis. 

On a YoY basis, the loan amount disbursed in FY 24-25 reduced by 16.9% and the number of new  loans disbursed degrew by 25.4%. In terms of geographical coverage, East and North-East and  South comprise 62.7% of the total microfinance portfolio. Portfolio quality as measured by PAR 31- 180 was 6.3% as compared to 2.2% at the end of Q4 FY 24-25. The current situation looks positive in  terms of improved credit quality, liquidity ingestion by the RBI in the banking system and  relaxations of QA norms for NBFC-MFIs