Muthoot Microfin , a prominent player in the microfinance sector, has successfully raised ₹150 crore through the issuance of Non-Convertible Debentures (NCDs). This strategic move aims to bolster the company's medium-term capital through debt instruments, potentially enhancing its lending capabilities and overall financial position.

Key Details of the NCD Issuance

Series-wise Breakdown

The NCD issuance is divided into two series, each with distinct features:

Security and Compliance

The NCDs are secured by an exclusive charge via a deed of hypothecation over a specific asset portfolio of receivables of Muthoot Microfin. The company is required to maintain a minimum security cover of 1.05 times on the outstanding principal amounts of the NCDs along with the coupon at all times during the tenor of the NCDs.

This capital raise aligns with the approval received from Muthoot Microfin's Board of Directors on May 8, 2025. The allotment was made by the company's Debenture Issue and Allotment Committee on November 11, 2025, in compliance with SEBI regulations.

Potential Impact

For Muthoot Microfin, this successful NCD issuance represents a significant step in strengthening its financial foundation. The infusion of ₹150.00 crore in medium-term capital could potentially enhance the company's ability to extend microfinance services, supporting its growth objectives in the competitive microfinance sector.

Investors and market watchers may keep a close eye on how Muthoot Microfin utilizes this capital to drive its business operations and expand its market presence in the coming months.

Muthoot Microfin , a leading microfinance institution in India, has reported its financial results for the second quarter, showcasing significant quarter-on-quarter improvements.

Financial Performance

Muthoot Microfin reported a net profit of ₹30.50 crores for Q2, marking a substantial increase of 393.6% sequentially from the previous quarter.

Key Financial Metrics

Business Highlights

The company's disbursements grew by 28.1% quarter-on-quarter to ₹2,273.90 crores. Muthoot Microfin's customer base expanded to 33.6 lakh active customers across 1,718 branches.

Asset Quality and Capital Adequacy

Muthoot Microfin reported an improvement in asset quality, with Gross Non-Performing Assets (GNPA) decreasing to 4.61% from 4.85% in the previous quarter. The Net NPA stood at 1.41%. The company's capital adequacy ratio improved to 28.91%, up 106 basis points quarter-on-quarter.

Strategic Initiatives

As part of its diversification strategy, the company has launched gold loans and micro-LAP (Loan Against Property) products. This move aims to broaden Muthoot Microfin's product offerings and enhance its market position.

Credit Rating

CRISIL has revised the outlook on long-term facilities to positive while reaffirming ratings at CRISIL A-. This revision reflects the company's improving financial profile and business prospects.

Corporate Actions

The board has approved amendments to debenture trust deed clauses and registration under Credit Guarantee Fund for Micro Units, indicating proactive measures to strengthen the company's financial structure and risk management.

Outlook

The sequential improvements and strategic initiatives suggest the company is positioning itself for growth in the microfinance sector. The management's focus on diversification and asset quality improvement is expected to support consistent growth in the coming quarters.