New Delhi, Feb. 24 -- The microfinance sector in the country is expected to register growth over FY26-28E, driven by selective customer additions, higher ticket sizes, and incremental contribution from non-microfinance portfolios, according to a report by JM Financial.

The report stated that the microfinance sector has reached an inflection point, transitioning from a period of rapid balance sheet contraction and stress recognition to one of stabilisation and gradual recovery.

"We believe the microfinance sector is at an inflection point. The industry has moved from a phase of rapid balance sheet contraction and stress recognition to one of stabilisation with gradual recovery. Growth over FY26-28E is likely to be driven primarily by hig...