Microfinance sector faces rising asset quality concerns despite capping borrowers to a maximum of three lenders. Portfolio at Risk (PaR) in the 31–180 day bucket rose significantly across banks and NBFC-MFIs. Consequently, the sector’s loan book contracted, funding slowed, and NBFC-MFIs continue to dominate the microfinance market.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets