Microfinance portfolio contracts further to Rs 3.59 lakh cr
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Kolkata: The size of India's microfinance market contracted further to Rs 3.59 lakh crore at the end of June, down 5.8% quarter-on-quarter and 17% year-on-year as lenders remained circumspect over growing lending portfolio The active loan accounts fell to 13.2 crore from 15.93 crore, with the live customer base declining to 8 crore from 8.66 between June 2024 and June 2025. The data were compiled and shared by credit bureau Credit High Mark The sectoral gross loan portfolio started falling from the first quarter of FY25 after it reached a record high of Rs 4.43 lakh crore at the end of March 2024. It fell to Rs 4.32 lakh crore at the end of June 2024.The moderation aligns with the Reserve Bank of India 's push for responsible lending, alongside guardrails from self-regulatory organisations to curb overleveraging, it said.Over the last few quarters, the issue of overlending has also been addressed.Borrowers with four or more active lender associations fell sharply to 10% in June 2025, from 19.2% a year earlier.Over the last 12 months, about 60% of all loans were extended to existing customers with proven repayment histories. Loans above Rs 1 lakh increased in portfolio share to 8.3% as of June 2025 from 4.6% a year back, with 80% of it going to borrowers with a vintage of more than 24 months.The credit bureau said that the portfolio performance has shown green shoots with early- and mid-stage delinquency levels (PAR 31–90) improved from 3.1% in December 2024 and 2.7% in March 2025 to 2.4% in June 2025, signalling strengthening repayment discipline . However, stress in later-stage buckets (PAR 180+ including write-offs) continued to rise, reaching 12.4% in June 2025 from 5.2% in June 2024, underscoring ongoing challenges.The performance highlighted a shift towards quality-focused lending, said CRIF High Mark chairman Sachin Seth."Lenders prioritised established borrowers, reduced overleveraging, and adjusted ticket sizes in line with risk considerations. The data also highlights early improvements in portfolio quality , with mid-stage delinquencies showing some improvement over the past two quarters,' he said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Deccan Herald
2 minutes ago
- Deccan Herald
Bollywood actor Shilpa Shetty, husband Raj Kundra booked in fraud case
The couple, and an unknown person, have been accused of cheating Mumbai-based businessman Deepak Kothari of Rs 60.4 crore in a loan-cum-investment deal involving a now-closed company, Best Deal TV Private Limited.
The Wire
2 minutes ago
- The Wire
Indian Army's Close-Quarter Battle Carbine Procurement Saga Poised to End with KSSL and Adani Deals
Rahul Bedi The process has underscored a key reality – for the MoD and the Indian Army, quick reaction weapons arrive at a glacial pace, if at all. Representative image of an Indian Army soldier with a weapon. Photo: PTI. New Delhi: It has been one of the longest procurement sagas in the Indian Army's history – nearly a quarter-century of tenders floated. scrapped, 'fast-track' acquisition contracts announced and abandoned, and intermediate or 'stopgap' fixes standing in for real solutions. And, finally last month it appeared that the Indian Army's close-quarter battle (CQB) carbine requirement of 425,318 units, pending since the late 1990s is likely to be met, to replace its legacy 9mm 1A1/2A1 sub-machine guns (SMGs) – local versions of the L2A3 Sterling machine gun – developed in England in the mid-1940s, and entering British Army service in 1953. For decades, these two SMG variants were licence-built for decades by the erstwhile Small Arms Factory at Kanpur, part of the erstwhile state-run Ordnance Factory Board, but their manufacture had ceased altogether on grounds of obsolescence by the early 2000s. Thereafter, the Indian Army had largely been operating without a CQB carbine, which operationally was critical to providing troops, much like its description suggests, with a compact, lightweight weapon for rapid, accurate fire in confined or urban environments, mountainous terrain and jungle environments. Since then, every attempt to replace the carbine has marched through the Ministry of Defence's (MoD's) familiar parade – tenders announced, trials held, everything voided, before sinking into the familiar swamp of bureaucratic futility with no weapon system. But industry sources now say that this cycle of ineptness had seemingly ended with the recent shortlisting of Kalyani Strategic Systems Limited and Adani Aerospace & Defence to supply 425,213 5.56×45 mm carbines to the Army in a potential Rs 2,800-crore deal that is expected to be imminently signed. According to the putative arrangement, KSSL, which had emerged as L1, or the lowest bidder, following trials, would supply the Army 60% or 255,190 CQB carbines of the overall tender from either its small arms unit at Jejuri or at Khed, near Pune. Additionally, Adani Defence, which was L2 or the second lowest bidder, is likely to be awarded the deal to provide the remaining 170,023 carbines from its facility at Gwalior, which it had acquired in 2020 from Punj Lloyd Raksha. Industry sources said that, in all likelihood, Adani Defence would match KSSL's L1 bid for the carbines in keeping with MoD standing operating procedures in selling them to the Army. The CQB carbine delivery timelines are expected to stretch over the next few years, with initial batches likely to be employed by Indian Army counter-insurgency units in Kashmir and the Northeast, where the absence of such a compact weapon small arms system has been most acutely felt. For soldiers used to presently lugging full-length assault rifles into tight alleyways or boarding helicopters with unwieldy weapons, the arrival of lightweight, rapid-firing CQB carbines will be more than an operational boost; it will finally usher in a vast operational change in counter-insurgency (COIN) operations. Meanwhile, KSSL will series produce the Joint Venture Protective Carbine (JVPC) engineered by the Defence Research and Development Organisation's (DRDO) Armament Research & Development Establishment (ARDE) in Pune, as part of a public-private partnership (PPP), under the MoD's atmanirbharta or self-reliance rubric. This carbine will also incorporate over 60% of content sourced indigenously. Weighing around three kg, the gas-operated JVPC features an ergonomic, ambidextrous design with a retractable stock and Picatinny rails for optics and accessories. Capable of firing over 700 rounds per minute to an effective range of 200-300m, it reportedly exhibits low recoil and is believed to demonstrate high reliability across extreme temperatures and in varied environments and incorporates a 120mm bayonet for hand-to-hand combat. Its service life is engineered for a service life of 15 years or 15,000 rounds, whichever comes first. Adani Defence, on the other hand, will produce the Israel Weapon Industries (IWI) Galil ACE CQB carbines-locally named 'Jeet', meaning 'victory'. It features a 368 mm long barrel, a weight of 3.2 kg, and a rate of fire between 650-750 rounds per minute to a 300-500 m range. Jeet incorporates a rotating bolt with a short-stroke gas piston, a full-length Picatinny rail for optics, a folding/telescopic stock, ambidextrous controls for quick handling, and compatibility with standard NATO magazines. The ACE CQB has also been deployed for extended periods by the Israel Defence Forces in its numerous COIN operations and other conflicts against Palestinians and many of its neighbours where firefights often occur in confined spaces. The two carbines were shortlisted after technical evaluations and field trials involving other domestic vendors, partnering with overseas small arms makers. These included Jindal Defence and Aerospace – associating with Brazil's Taurus Armas, BSS Material in New Delhi, linking up with Indo-Russian Rifles Private Limited and Bharat Electronics, which had tied up with Italy's Beretta. Over the years, the CQB carbine procurement process has been compelling and concerning, exposing both the Army's and MoD's procurement systems at their most ineffective, bogged down by delays, indecision, and missed opportunities. After acknowledging the operational shortcomings of the aging 9mm Sterling submachine gun in the late 1990s – particularly its limited range, stopping power, and accuracy – the Indian Army adopted a stopgap solution. It employed a shortened variant of the locally developed 5.56x45mm Indian Small Arms System (INSAS) assault rifle as part of its customary jugaad, or innovative fix, which only ended up highlighting its significant limitations and rendering it relatively ineffective for such specialised roles. Senior infantry officers said the INSAS rifle was not optimised for CQB scenarios, as its relatively longer barrel and overall dimensions made manoeuvring in confined spaces cumbersome. The absence of features like a folding stock or compact design further hindered its suitability for rapid movement and handling in close and restrained urban situations. Soldiers found it challenging to quickly reposition and engage enemy targets, simply due to the rifle's size and weight. But despite these obvious limitations, these shortened INSAS alternates remained in widespread use for years and continue even today. However, in 2002-3, the first global tender was floated for 44,618 5.56x45mm CQB carbines, with under-barrel grenade launcher compatibility. Several trials took place, involving major overseas small arms makers like the US's Colt, Italy's Beretta and IWI. But in 2007-2008, after extended trials at the Infantry School at Mhow, in Madhya Pradesh, in the Rajasthan desert, Punjab's plains and high altitude regions in Sikkim and Himachal, the contract was terminated due to the Indian Army's 'overreach' in determining the carbines specifications or Qualitative Requirements (QRs) about their add-ons, like thermal-designated laser sights. A follow-on RfP was issued in December 2010 for an equal number of weapons. Then again, in 2013, after a protracted three-year trial process, the carbine procurement was once again thwarted, not by performance issues, but over a minor safety feature. One of the shortlisted carbines included a small, screw-like safety component designed to render the sights "eye safe" during low-intensity engagements, thereby preventing potential retina damage. Yet, this feature was not specified in the original tender's technical requirements, and a three-member, senior Army committee failed in resolving the 'discrepancy', leading again to the contract's cancellation, despite escalating insurgent activities in Kashmir and increasing Army casualties in COIN encounters. Industry sources noted that this time round, the tender was scrapped solely because the "safety screw" had not been included in the original specifications, irrespective of the protection it offered. Subsequently, in March 2018 the MoD issued yet one more RfP – its third in a decade, for 93,895 CQB carbines this time, in which the United Arab Emirates Caracal International's CAR 816 carbine was shortlisted, seven months later for procurement via the MoD's Fast Track Procedure (FTP), having bested its rival F60 model fielded by Thales of Australia in trials. Under the FTP route, through which the CAR 816s were to be procured, the $110 million tender was to have been completed within the mandated 12-14 months or by August 2019. But 13 months later, in September 2020, the MoD opted to arbitrarily ditch the deal for undeclared reasons. 'Processing the carbine purchase via the FTP indicated the operational urgency of the buy, but that too was bafflingly blocked,' said a senior army officer associated with the deal. The entire endeavour was simply incomprehensible and mystifying, he added, declining to be named, as he was not authorised to speak to the media. Conversely, in the ensuing years, the ARDE developed the JVPC in collaboration with KSSL, and Adani Defence partnered successfully with IWI to produce the 'Jeet', ostensibly clinching the CQB carbine buy as things presently stand. But it also underscored the reality that for the MoD and the Indian Army, quick reaction weapons arrive at a glacial pace, if at all. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments. Advertisement
New Indian Express
2 minutes ago
- New Indian Express
588 defunct excise licences to be auctioned
BENGALURU: The state government is shortly going to auction around 588 defunct excise licences to scale up revenue collection and mobilise resources, informed sources told TNIE. Of the 588 odd licences that will go under the hammer 'soon', 288 are 11-C (government-owned Mysore Sales International Limited retail outlet) licences followed by 204 CL-2 (retail liquor shops) and 96 CL-9 (bars & restaurants), said sources on condition of anonymity. 'These licences have not been renewed for whatever reason, and have been lying defunct. The reason behind the auction is to bring them back into the market and generate revenue for the government. The auction is likely to fetch between Rs 500 crore and Rs 600 crore,' said sources. The Excise department is presently working out the modalities; from prospective allocation of these licences to the 40 excise districts in Karnataka to suggesting reserve or base price (minimum price of the bids) etc. The draft will soon be shared with the government to finetune it; address legal hurdles and set the base price of the bids. 'The base price may be pegged at 10 to 15 times higher than the Excise licence fee. No decision has been taken so far on this. The government will take the final decision. Majority of licences, especially CL-9, are likely to be allocated to Bengaluru,' added the sources. 'Out of the 288 MSIL licences under consideration for auction, 64 have not been renewed, rest were not utilised and are being considered to be brought back to the main pool,' said sources. Meanwhile, the liquor industry has responded to the proposed auction with caution. 'Our concern is that multinational companies may end up having an upper hand in these auctions with higher bids. They have the money power to incentivise sales of their brands, which no Indian company or brand will be able to match.
