Chapter 2 Section 2.1.1Key Performance Highlights

Loan outstanding, loan accounts, disbursement, asset quality, Average Ticket Size and average loan outstanding per account for FY 2025-26 at a glance.

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2.1.1 Key Performance Highlights

Loan Outstanding: The sector’s loan outstanding stood at ₹3,33,907 Cr. as of March 2026, a decline of 11% year-on-year. The year-on-year decline reflects the careful approach adopted by MLIs, overcoming the stress cycle through repayments, write-offs and tighter guardrails, etc. Whereas the sequential uptick signals that new originations have begun to outpace portfolio run-off, marking the onset of a fresh growth phase.

Loan Accounts: Loan accounts totalled 1,040 lakhs as of March 2026. Combined with a loan outstanding of ₹3,33,907 Cr., this implies an average outstanding balance of approximately ₹32,116 per account, an indicator of the extent to which the sector has migrated toward higher ticket lending relative to previous years.

Disbursement: Loan disbursement in the microfinance sector continued its de-growth trend through FY 2025-26, though the pace of contraction eased markedly by year-end. The sector-wide disbursement contracted by 21% in volume and 8% in value between FY 2024-25 and FY 2025-26, even as the loan outstanding itself declined by 11%, indicating lenders wrote fewer but comparatively larger loans through the year.

Asset Quality: The PAR 30-179 DPD improved to 2.34% in March 2026 from 6.63% a year earlier, while PAR 90-179 DPD stood at 1.45%. This improvement was achieved partly through stronger collections on the current book, and partly through write-offs, though the PAR 180+ DPD continued to rise, indicating that legacy stressed assets are still being worked through.

Average Ticket Size (ATS): Average Ticket Size rose to ₹59,473 during FY 2025-26, up from ₹50,918 during FY 2024-25, a Y-o-Y increase of 17%. Over a five-year horizon, ATS has risen from ₹36,510 in FY 2020-21 to ₹59,473 in FY 2025-26, indicating a structural shift toward higher-value lending to established borrowers.

Average Loan Outstanding per Account: At ₹32,116 per loan account (derived from loan outstanding of ₹3,33,907 Cr. over 1,040 lakh loan accounts), average outstanding balances remain moderate relative to ATS, reflecting the amortising nature of microfinance loans and continued repayment discipline even through the stress cycle.