Paisalo Digital Limited, a leading non-banking finance company (NBFC) focused on inclusive lending, has demonstrated remarkable expansion momentum by accelerating its touchpoint network growth across India. The company has expanded its network by 4 times from 1,052 touchpoints across 18 states in FY23 to 4,380 touchpoints across 22 states and union territories as of Q2 FY26.

Network Expansion and Customer Growth

The current touchpoint network comprises 402 branches, 2,585 distribution points, and 1,393 Business Correspondents (BCs), strengthening the company's grassroots presence to drive financial inclusion and expand access to affordable credit.

Financial Performance Highlights

Asset Quality and Operational Excellence

Despite rapid expansion, Paisalo Digital maintains strong asset quality metrics with Gross NPA at 0.81% and Net NPA at 0.65%. The company achieved a collection efficiency of 98.4% and maintains a robust Capital Adequacy Ratio of 38.2%.

Strategic Growth Initiatives

Speaking on the expansion, Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, emphasized that expanding touchpoints and strengthening customer franchise are central to the company's growth strategy. The technology-enabled, high-touch model combines local presence with technology-led underwriting to improve credit accessibility and service quality across Bharat.

The company is actively investing in workforce capacity and prioritizing cross-selling of financial products through its Business Correspondent (BC) and branch networks to boost Banking as a Service (BaaS) share and drive long-term customer value. Additionally, USD 4.00 million from the company's USD 50.00 million FCCB issuance were converted into share capital, with the allotment of 74.06 lakh equity shares at a premium of ₹44.74 per share.

This continued expansion reinforces Paisalo Digital's operational scale and position as a trusted financial partner for micro-entrepreneurs, small business owners, and self-employed individuals, supporting India's financial inclusion agenda while delivering long-term stakeholder value.

Muthoot Microfin Limited has successfully completed the allotment of ₹1,500 crore worth of non-convertible debentures (NCDs) through private placement. The Debenture Issue and Allotment Committee approved this significant capital raising exercise on December 16, 2025, following the Board of Directors' initial approval from their meeting dated May 8, 2025.

NCD Allotment Structure

The company has structured the NCD issuance into two distinct series, each targeting different investor preferences and tenure requirements:

Security and Risk Management

The NCDs are classified as Listed, Rated, Senior, Secured, Transferable, and Redeemable instruments, providing multiple layers of investor protection. The debentures are secured by a first-ranking and exclusive charge of 1.05 times over the company's receivables, including present and future receivables that are free from any encumbrances, charges, or liens.

This security structure ensures that the outstanding principal amount, together with accrued interest, maintains adequate collateral coverage throughout the tenure of the instruments. The receivables-based security model aligns well with Muthoot Microfin's core business operations in the microfinance sector.

Market Listing and Compliance

The NCDs will be listed on BSE Limited, providing liquidity options for investors during the tenure period. The allotment has been conducted in accordance with Regulation 30 and other applicable regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company has confirmed that no delays in payment of interest or principal amount for more than three months from the due date are anticipated, and there are no existing defaults in payment obligations. This clean track record supports the company's creditworthiness in the debt market.

Strategic Implications

This ₹1,500 crore capital infusion represents a substantial funding achievement for Muthoot Microfin, providing the company with resources to expand its microfinance operations and strengthen its market position. The differentiated coupon rates between the two series reflect the term premium, with the longer 36-month Series II offering a higher rate of 9.95% compared to 9.85% for the 24-month Series I.

The monthly coupon payment structure offers regular income streams for investors while supporting the company's cash flow management. This successful private placement demonstrates strong investor confidence in Muthoot Microfin's business model and growth prospects in the competitive microfinance sector.