Microfinance rebounds as loan growth surges after 11 quarters of contraction and write offs

Delinquency is down and portfolios are back in

India’s microfinance sector has bounced back strongly, with loan portfolios expanding sharply in the March quarter after 11 quarters of contraction and write-offs. Alongside the recovery in lending, delinquency rates have also declined, easing worries from the earlier stress cycle. The report suggests this improved momentum is likely to continue in coming quarters.