Muthoot Microfin Limited has achieved a significant business milestone, announcing that its Individual Loan portfolio Assets Under Management (AUM) has crossed ₹1,000 crore while the company's overall AUM has surpassed ₹13,000 crore. This development marks an important step in the NBFC-MFI's journey toward building a more diversified and resilient lending portfolio.

Portfolio Diversification Strategy

The milestone reflects Muthoot Microfin's steady progress in strengthening its diversified lending portfolio while maintaining microfinance as the foundation of its business operations. The company attributed the expansion of the individual loan book to disciplined underwriting practices, focused execution at the branch level, and a sustained emphasis on portfolio quality that complements the company's core microfinance operations.

Operational Performance and Network Reach

Muthoot Microfin continues to demonstrate stable operating performance, supported by improving disbursement momentum, strong customer engagement, and consistent collection efficiency. As of September 30, 2025, the company maintains a robust operational network serving a substantial customer base across India.

Management Commentary

Thomas Muthoot, Chairman and Non-Executive Director of Muthoot Microfin, emphasized that these achievements mark an important milestone in the company's growth journey. He highlighted that the company has expanded its individual lending business alongside its core microfinance operations as part of a broader portfolio strategy, while microfinance remains the foundation of the business.

Sadaf Sayeed, Chief Executive Officer of Muthoot Microfin, noted that the individual loan portfolio has grown with credit assessment and collection processes in place to manage risk. The portfolio has been built with disciplined credit assessment and strong collection processes, ensuring healthy performance as it grows.

Strategic Focus and Future Direction

Muthoot Microfin remains focused on microfinance-led lending, primarily to women borrowers, while selectively expanding into other loan segments to support long-term growth. The company continues to invest in strengthening its risk management framework, operational efficiency, and digital capabilities to enhance customer experience and portfolio resilience.

The company stated that it is strengthening its risk management and operational framework as it scales its business. As one of India's leading listed MFIs and part of the Muthoot Pappachan Group with a legacy of 138+ years, Muthoot Microfin continues its mission of delivering financial services to underprivileged and disadvantaged populations in rural sectors through affordable terms, quick turnaround times, and hassle-free processing.

Muthoot Microfin , a key player in India's microfinance sector, has approved the issuance of Non-Convertible Debentures (NCDs) worth Rs 450 crores through private placement. The company has issued a corrigendum to correct a typographical error in its earlier disclosure regarding this decision.

Key Details of the NCD Issuance

The NCD issuance is structured into multiple series and tranches, with varying face values and interest rates. Here's a breakdown of the key features:

• Two series with a face value of Rs 10,000 each, totaling Rs 150 crores
• Two tranches with a face value of Rs 1,00,000 each, totaling Rs 300 crores
• Interest rates ranging from 9.70% to 9.95% per annum

Financial Implications and Security

The debentures will be issued through private placement, indicating a targeted approach to raising capital. This structure allows Muthoot Microfin to leverage its assets effectively while providing potential investors with attractive interest rates.

Company's Financial Position

Muthoot Microfin's balance sheet reflects a total asset base of Rs 10,857.00 crores, showcasing the company's substantial scale in the microfinance sector. The company's current assets stand at Rs 1,446.10 crores, indicating a strong liquidity position to support its operations and debt servicing capabilities.

Despite a slight decrease in total assets and shareholders' capital compared to the previous year, Muthoot Microfin maintains a robust financial structure with a healthy reserve and surplus of Rs 2,464.60 crores.

Market Implications

This NCD issuance may strengthen Muthoot Microfin's capital base, potentially supporting its lending activities and overall growth strategy. For investors, these NCDs offer an opportunity to invest in a leading microfinance institution with attractive interest rates.

As the microfinance sector continues to play a crucial role in financial inclusion in India, Muthoot Microfin's move to raise capital through NCDs reflects the ongoing demand for credit in this segment and the company's approach to meeting this demand while managing its financial resources.