New Delhi, Aug. 14 -- The stress continues in the Indian microfinance industry, which is expected to see muted loan growth for a few more quarters, till 2Q-3QFY26 before recovery begins, noted a report by Morgan Stanley.
The report stated that growth in assets under management (AUM) for microfinance institutions (MFIs) has slowed or even declined in recent quarters. In 4QFY25, some institutions posted double-digit declines in quarterly growth.
It stated, "We see continued stress, muted loan growth for few more quarters (till 2Q-3QF26) before recovery begins"
Highlighting some companies, the report stated that Spandana Sphoorty recorded the sharpest drop at 24 per cent, followed by Asirvad MFI with an 18 per cent fall. IndusInd Bank and...
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