New Delhi, June 17 -- India's microfinance sector is showing early signs of recovery after multiple quarters of contraction, with improving asset quality, stronger credit discipline and a revival in lending activity, according to the 27th edition of the Microfinance Pulse Report released jointly by SIDBI and Equifax. Microfinance Sector Shows Early Signs Of Recovery The report noted that while the microfinance industry's portfolio outstanding declined 17 percent year-on-year by March 2026, the latest quarter signalled a turnaround, with portfolio growth of 3 percent over December 2025. Total portfolio outstanding stood at Rs 2.77 lakh crore, covering nearly 5.5 crore unique borrowers across 7.6 crore active loans. Disbursements Rebound As...