Mumbai, Oct 10 (PTI) The worst is over for the troubled microfinance institutions, but "adequate funding support" is crucial for the segment serving the bottom-of-the-pyramid access credit going forward, a self-regulatory organisation said on Friday.

The stress in asset quality and consequently on the profitability is expected to continue for some more time and may stabilise in the second half of the fiscal year, Sa-Dhan, the self-regulatory organisation (SRO) for the industry, said.

"The positive part is that the stress pattern has started showing a decline, indicating the worst is over, and there could be a reversal in the decline of the loan outstanding witnessed in the previous FY 2024-25, provided adequate funding support is received," it said in a report.

It said the stress is a "

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