Stock Report

Fusion Finance Highlights Uttar Pradesh's Strategic Importance as One of India's Largest MFI and MSME Markets: Outlines State-Level Priorities

Posted On : 2026-02-27 14:06:25( TIMEZONE : IST )

Fusion Finance Limited today reaffirmed its strategic focus on Uttar Pradesh, identifying the state as one of India's most significant markets for advancing financial inclusion alongside sustainable microfinance and MSME lending growth.

Uttar Pradesh remains to be central to the Company's operating strategy, driven by its large rural and semi-urban population, growing entrepreneurial activity, expanding inclusive finance ecosystem, and sustained demand for credit among low-income households and micro-entrepreneurs. The state's scale and socio-economic diversity makes it a critical geography for extending responsible finance to underserved communities.

Uttar Pradesh represents a structurally strong and diversified credit market. Increasing financial awareness, gradual formalization of rural credit channels, and wider digital adoption are steadily strengthening access to organized finance. These trends, combined with a resilient repayment culture and a gradual shift toward responsible and data-led underwriting practices, position Uttar Pradesh as a high-growth region within India's broader microfinance landscape, holding nearly 11% market share in the MFI space.

As of 31st December 2025, Fusion Finance's portfolio in Uttar Pradesh stood at INR 1837 Crore, comprising INR 1543 Crore in microfinance representing 25% of overall MFI book and INR 294 Crore in MSME lending, representing 40% of MSME book, supported by 271 MFI branches and 28 MSME branches serving around 5.52 lac active MFI loan accounts, and 8,000 MSME loan accounts. Across India, Fusion Finance's total Asset Under Management (AUM) stood at Rs. 6,876 crore as of December 31, 2025 with over 23.4 lakh customers.

Speaking about the Company's commitment in Uttar pradesh, Mr. Sanjay Garyali, MD & CEO, Fusion Finance Limited, said: "Q3 FY26 was a quarter of steady and disciplined execution for Fusion Finance. We delivered profitability while continuing to deepen our operational reach and strengthen asset quality. Markets like Uttar Pradesh remain a prime focus for us because of the strong demand for responsible credit and the opportunity to extend both microfinance and secured MSME solutions in a calibrated manner. We will continue to invest in digital capabilities, risk-based underwriting, and realtime monitoring tools to enhance customer experience and build high-quality portfolios that support sustainable, long-term growth."

Over the past year, Fusion has reinforced its institutional framework across key states, including Uttar Pradesh, by strengthening branch-level monitoring, expanding digital onboarding (eKYC and digital signing), and deploying analytics for credit decisioning and used AI for operational efficiency. These measures have accelerated disbursement processes, improved operational efficiency, and bolstered discipline in underwriting and collections.

Mr. Garyali reiterated that Uttar Pradesh will remain central to Fusion's mission of enabling broader financial inclusion for underserved women and micro-entrepreneurs. With stronger fundamentals, improved profitability, and a forward-looking strategy, the company is well-positioned to support the state's evolving credit landscape and build on its growth momentum in the quarters ahead.

Shares of Fusion Finance Limited was last trading in BSE at Rs. 203.55 as compared to the previous close of Rs. 191.10. The total number of shares traded during the day was 48113 in over 1088 trades.

The stock hit an intraday high of Rs. 205.85 and intraday low of 189.95. The net turnover during the day was Rs. 9673338.00.