Microfinance Stress Not ‘Brutal’: MFIN CEO Pushes Back On 16% NPA Narrative

At the BT Best Banking & Economy Summit, Dr. Alok Misra, CEO& Director of MFIN, strongly rejected the “brutal stress” narrative around India’s microfinance sector. While headlines cite 16% NPAs and ₹55,000 crore in stressed assets, Misra clarified that Portfolio At Risk stands at 4.7%. He attributed the spike to external disruptions — heatwaves, state-level agitations and policy uncertainty — not structural underwriting failures. With 96.4% of loans compliant with RBI norms and MFIN guardrails, and overleveraging reduced to 3%, the sector believes peak stress has already passed. The bigger challenge now is the funding winter — though Misra hinted that positive developments may emerge soon.