Atmadip Ray

The number of borrowers taking loans from three or more lenders was 11 million, or 13% of the total microfinance borrower base of 85 million, showed the latest data collated by credit bureau CRIF High Mark, and seen by ET. At present, the microfinance sector is reeling under severe asset quality stress. The sectoral gross nonperforming assets ratio rose to an 18-month high of 11.6% at the end of September

Microfinance institution heads state that lowering interest rates is difficult without cheaper funding sources, emphasizing the need for a dedicated credit guarantee scheme, a refinance facility, or an interest subvention. Industry leaders acknowledge asset quality stress and urge the sector's self-regulators to address systemic issues affecting microfinance borrowers.

The microfinance sector in India has seen a decline from Rs 4.43 lakh crore in March 2024 to Rs 3.93 lakh crore by November due to slowing loan disbursals and rising asset quality stress. Collection efficiency has dropped, affecting the sector's performance. Recovery is expected in the second half of FY26, with lenders implementing strategies to prevent further decline.

The microfinance sector in India has seen a decline from Rs 4.43 lakh crore in March 2024 to Rs 3.93 lakh crore by November due to slowing loan disbursals and rising asset quality stress. Collection efficiency has dropped, affecting the sector's performance. Recovery is expected in the second half of FY26, with lenders implementing strategies to prevent further decline.

The weakening rupee is unlikely to significantly impact India's trade balance, inflation, or growth prospects despite hurting importers. Limited commodity price rises and weak global growth, especially in China, help mitigate imported inflation. Excessive rupee interventions may hinder growth and further strain forex reserves and liquidity.

The weakening rupee is unlikely to significantly impact India's trade balance, inflation, or growth prospects despite hurting importers. Limited commodity price rises and weak global growth, especially in China, help mitigate imported inflation. Excessive rupee interventions may hinder growth and further strain forex reserves and liquidity.

The Indian rupee continues to lose value. Yet, economists believe it is still overvalued based on the real effective exchange rate (REER). Since November, the rupee has fallen about 2 percent. Experts expect the rupee to stay under pressure until clarity on Donald Trump's policy decisions. Inflation trends will also affect the rupee's valuation.

The Indian rupee continues to lose value. Yet, economists believe it is still overvalued based on the real effective exchange rate (REER). Since November, the rupee has fallen about 2 percent. Experts expect the rupee to stay under pressure until clarity on Donald Trump's policy decisions. Inflation trends will also affect the rupee's valuation.

Kolkata-based Truhome Finance, formerly Shriram Housing, aims to expand its business by 30% by FY26, backed by strategic initiatives and capital infusion of Rs 1,200 crore from owner Warburg Pincus. The company also plans sustained growth over the next 5-7 years and targets to be the No. 1 affordable housing finance company.

RBI economists caution that persistent food inflation, amidst rising rural wages and corporate salaries, requires ongoing monitoring. While December's CPI eased to 5.2%, food inflation remains high. Economic growth is anticipated to accelerate in H2, driven by demand rebound and public capex. Uncertainty clouds the future interest rate path, with RBIs next review on February 7.