The CRIF analysis shows a significant decline in MFI asset quality in Bihar, Uttar Pradesh, and Kerala.

The CRIF research claims that as of September 2024, the asset quality of microfinance institutions in three states—Bihar, Uttar Pradesh, and Kerala—had drastically declined. The Kerala 31-180 day portfolio at risk (PAR) increased from 2.1 percent in September 2023 to 7.2 percent in September 2024. According to the research, Bihar and Uttar Pradesh's PAR increased from 1.9 and 0.9 percent in September 2023 to 5.5 and 4 percent in September 2024, respectively. "Delinquencies increased even more in Q2FY25 in all DPD bands. According to the research, delinquencies increased in all ticket sizes and lender types, but they were especially high in the top ten states. The survey also said that SFBs had greater PAR 31-180 days past due (DPD) than other major lenders. The lowest PAR 31-180 was recorded by NBFCs in September 2024. Bihar, Tamil Nadu, Uttar Pradesh, and Odisha are the top four states, with a combined 62% influence on incremental Y-o-Y and Q-o-Q delinquency.