RBI Grade BNABARD ESISEBI
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Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
According to the 2025 Bharat Microfinance Report by Sa-Dhan, a self-regulatory organization for microfinance institutions (MFIs), loan delinquencies in the microfinance sector rose sharply in FY 2024-25, indicating growing financial stress among small borrowers.
Key Findings:
- Rising Delinquencies:
- Loans overdue more than 30 days (PAR 30+) rose to 6.2% in FY25 from 2.1% in FY24.
- Non-Performing Assets (NPAs):
- Loans overdue more than 90 days increased to 4.8%, up from 1.6% in FY24.
- State-Level Insights:
- Bihar had the highest outstanding microfinance loans at ₹57,712 crore.
- Of these, 7.2% were overdue beyond 30 days and 4.6% beyond 90 days.
- Rural Borrower Stress:
- Out of ₹2.3 lakh crore rural loans, 6.4% were overdue beyond 30 days.
- Semi-urban and urban delinquencies were 6.1% and 6%, respectively.
Significance:
- The data suggests a post-pandemic stress persistence in rural credit markets despite economic recovery.
- Rising delinquencies may impact microfinance institutions’ balance sheets and credit availability for low-income households.
- Calls for stronger credit risk management, restructuring support, and financial literacy interventions in high-risk states like Bihar.
