New Delhi, Feb. 12 -- The Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) continued to anchor the microfinance ecosystem, commanding a 41.6% share of the total portfolio outstanding as of December 2025, as per the latest MicroLend report released by credit bureau CRIF High Mark.

In contrast, banks saw their portfolio share decline from 32.7% in December 2024 to 26.6% in December 2025, it said.

The report said that while banks posted 13.4% QoQ growth in originations value in Q3 FY26, their overall share in disbursements fell from 36.7% in Q3 FY25 to 26% in Q3 FY26. NBFC-MFIs led originations with a 45.1% share in Q3 FY26, reflecting sustained gains in market positioning.

India's microfinance sector is witnessing caut...