New Delhi, May 8 -- India's microfinance sector recorded a significant turnaround as the portfolio outstanding rebounded to Rs 331,000 crore as of March 2026. This recovery, marking a 3.2 per cent quarter-on-quarter (QoQ) growth, represents the first major uptick after nearly eight quarters of contraction since March 2024. The growth was largely supported by a surge in new loan originations and an increase in average ticket sizes across the industry.

According to the latest MicroLend report by CRIF High Mark, this recovery was accompanied by a notable moderation in delinquency indicators. The report highlighted that the PAR 31-180 bucket improved to 2 per cent by March 2026, down from 2.4 per cent in March 2024. While the portfolio outst...