Odisha has been identified as a key emerging microfinance market in eastern India, driven by growing rural and semi-urban livelihood opportunities, improved income visibility, and increasing demand for small-ticket credit among low-income households.
The state’s credit ecosystem is experiencing steady formalisation, deeper penetration of digital financial services, and a stronger emphasis on responsible and data-driven lending practices. These trends, combined with improving borrower behaviour since the festive season and early signs of rural income recovery, position Odisha as a high-potential region in India’s evolving microfinance landscape.
As of September 30, 2025, Fusion Finance’s portfolio in Odisha stood at ₹577 crore, supported by a network of 135 microfinance branches across 30 districts. The company caters to approximately 250,000 women through its Joint Liability Group (JLG) model. Fusion has been operating in Odisha since 2016, and its extensive on-ground presence allows it to serve a broad base of underserved borrowers while maintaining strong portfolio oversight. Stable repayment behaviour in Odisha reflects Fusion’s disciplined underwriting, selective customer selection, and its focus on building a higher-quality microfinance loan portfolio in line with industry improvements.
Mr Sanjay Garyali, CEO of Fusion Finance, commented on the company’s commitment to the state: “Odisha remains a strategically important market for us as the microfinance cycle shows visible signs of stabilisation. The strong credit discipline we have established, supported by enhanced underwriting, stricter customer guidelines, and consistently high collection efficiency, reinforces our focus on sustainable growth. As asset quality continues to strengthen and borrower behaviour improves, we are well-positioned to support financial inclusion and long-term value creation in the state.”
Over the past year, Fusion has further enhanced its operating and risk framework through more stringent credit filters, upgraded branch-level monitoring, and greater adoption of digital processes. Its proprietary core lending system, ‘Shakti,’ has enabled faster onboarding, seamless cashless disbursements, and real-time portfolio monitoring. These improvements have boosted productivity while supporting high-quality growth in Odisha.
Looking ahead, Fusion plans to deepen its presence in high-potential districts, enhance portfolio quality through prudent customer selection, and further strengthen credit discipline in alignment with the evolving regulatory framework. The company will also continue to scale digital initiatives, including eKYC, API-based credit checks, and automated collections, forming the cornerstone of its growth strategy for FY26. To support this measured expansion, Fusion recently reinforced its capital base through an ₹800 crore rights issue, providing sufficient resources for future growth.
Mr Garyali emphasised that Odisha will remain central to Fusion’s mission of advancing financial inclusion for underserved women and low-income households. With improving asset quality, a strengthened on-ground presence, and a forward-looking strategy aligned with regulatory and market shifts, the company is well-positioned to meet Odisha’s evolving credit needs and sustain its growth momentum in the year ahead.
