India’s top microfinance entities and small finance banks have reported strong growth in microfinance loans during the second quarter, as lenders stepped up disbursements amid a decline in delinquencies, improving asset quality and lower credit costs in the sector. CreditAccess Grameen, the country’s largest microfinance NBFC, reported 20% year-on-year growth in assets to Rs 30,946 crore during Q2FY27. The lender added 2.7 lakh new borrowers, with disbursements jumping 19% to Rs 6,355 crore. Asset quality also improved to pre-crisis levels, with its portfolio at risk (PAR) for 90-plus days at 1.1%, the lowest in 10 quarters.