After seven quarters of contraction, the microfinance sector’s gross loan portfolio (GLP) posted a sequential growth of 3% to Rs 3.25 lakh crore in Q4FY26, aided by a sharp recovery in disbursements and improving asset quality. On a year-on-year basis, however, the sector’s GLP remained 13% lower than Rs 3.75 lakh crore reported in March 2025, according to the 57th edition of Micrometer for Q4FY26 released by Microfinance Industry Network (MFIN), a self-regulatory body for the sector.