business microfin in major crisis with near 2x npa surge joint liability lending model on shaky ground

Microfin In Major Crisis With Near-2x Npa Surge; Joint-liability Lending Model On Shaky Ground

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India's microfinance sector is facing a severe crisis as delinquency rates have surged, with gross NPAs reaching 16% in FY25. This rise has led to lenders reducing their loan portfolios. Small finance banks are particularly affected, and regulatory measures in Tamil Nadu are expected to worsen the situation, impacting investor confidence and share prices.