Microfinance companies reported a credit cost of 3.3% in the quarter, below the forecast range of 4-6% for the fiscal year. Provisions were Rs 106 crore, down from Rs 164 crore in the same quarter last year. Gross non-performing assets (NPA) ratio improved slightly to 4.4% in December from 4.6% three months earlier. However, pre-provisioning operating profit fell to Rs 175 crore from Rs 252 crore. The net interest margin rose to 12%, up 11 basis points from the previous quarter. The gross loan portfolio grew 5.4% year-on-year to Rs 13,079 crore. Muthoot chairman Thomas Muthoot said, "The microfinance sector has emerged from a challenging phase with industry gradually returning to a sustainable growth path." GIC Housing Finance reported a net profit of Rs 44 crore for the third quarter, a 12% drop from Rs 50 crore a year ago. Total expenses were Rs 218 crore, slightly higher than last year’s Rs 214 crore. Total income increased to Rs 273 crore from Rs 270 crore. But its gross NPA ratio increased to 4.24% in December 2025 from 3.47% a year prior. The net profit margin declined to 16% from 18.4% the previous year.