At the BT Best Banking & Economy Summit, Dr Alok Misra, CEO & Director of Microfinance Institutions Network, says the worst stress phase for microfinance may already be behind. He notes that portfolios disbursed over the last year are showing 4–4.5% stress at 120 days, which he calls the “new normal,” potentially easing further. Legacy stress has largely been provided for under the expected credit loss accounting system followed by major NBFCs. While the financial hit has been absorbed, the sector is currently facing a funding winter. However, Misra hints that positive developments may be announced soon — suggesting the funding environment could begin to improve in the coming weeks.