The correct answer is Tamil Nadu. Tamil Nadu has displaced West Bengal to emerge as the largest State in terms of the outstanding portfolio of microfinance loans (MFL). According to a report published by Microfinance Institutions Network (MFIN), the gross loan portfolio (GLP) of Tamil Nadu as of March 31, 2022, stood at ?36,806 crore. It was followed by Bihar (?35,941 crore) and West Bengal (?34,016 crore). Important PointsAt the end of Q3FY22, West Bengal topped the chart with the highest outstanding portfolio of loans at ?32,880 crore, followed by Tamil Nadu (?32,359 crore). The Top 10 States (based on total microcredit universe) constitute 82. 4 per cent of total GLP of the industry. West Bengal was followed by Karnataka, Uttar Pradesh and Maharashtra. According to the report, around 64 per cent of the microfinance portfolio is concentrated in the East, Northeast, and Southern regions. Lender-wise distribution of micro-loans shows that 12 banks held the largest share of the portfolio in micro-credit with a total loan outstanding of ?1,14,051 crore, or 40 per cent of the total microcredit universe. The report noted that the proportion of NBFC-MFI portfolios in the universe portfolio increased by 4. 1 per cent to 35. 2 per cent as of March 31, 2022, though banks continued to be the main contributors.