Muthoot Microfin Ltd Share Price – NSE  /  BSE

Finance, Small Cap

Muthoot Microfin has secured a corporate agent license from the Insurance Regulatory and Development Authority of India (IRDAI) that would enable it to offer tailored insurance plans to its customer base.

This license strengthens Muthoot Microfin's commitment to financial inclusion by providing insurance coverage that addresses the risks faced by the most vulnerable segments of society. By offering cover for natural calamities and medical emergencies in addition to life insurance, Muthoot Microfin ensures a holistic approach to its customers' financial security. This initiative stems from Muthoot Microfin's customer-first approach, which allows the company to offer both financial and insurance solutions under one roof to its 3.35 million customers.

The corporate agent license will help Muthoot Microfin negotiate better with insurance partners and customize products to suit the needs of its BOP (Bottom of the Pyramid) customers in rural and semi-urban areas across India. With this new license, Muthoot Microfin can offer the right insurance products to its customers while augmenting its sources of revenue and earnings

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Muthoot Microfin has announced a significant update to its recent External Commercial Borrowing (ECB) initiative.

The greenshoe portion of the ECB was oversubscribed from USD 25 Mn to USD 38 Mn and was participated by Union Bank of India (DIFC Branch), Bank of Bahrain and Kuwait B.S.C., Bank of India (DIFC Branch, Dubai), Mega International Commercial Bank Co. Ltd. (Labuan Branch). This expansion in the greenshoe option comes after the successful initial raise of USD 75 million, which was solely arranged by Standard Chartered Bank, acting also as the Social Loan Coordinator. The development underscores the strong confidence international investors have in Muthoot Microfin's growth and mission.

Sadaf Sayeed, CEO of Muthoot Microfin, stated, We are delighted to receive an overwhelming response to our ECB paper in the international market. The increased greenshoe amount is a testament to the faith and trust that global financial institutions have in our business and the social impact it is making . We are glad to receive the offer from marquee international names; it will help us diversify our source of funds further. This will bolster our efforts in deepening financial inclusion agenda by providing microfinance loans across geographies, promoting entrepreneurship among women, and fostering inclusive growth.

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Muthoot Microfin announced a strategic co-lending partnership with the State Bank of India (SBI). With this collaboration, Muthoot Microfin aims to extend its financial services to women entrepreneurs in rural and semi-urban regions across India.

Under this agreement, Muthoot Microfin and SBI will co-lend to members of Joint Liability Groups (JLGs) who are engaged in agricultural and allied activities as well as other income-generating enterprises. The loan amounts will range from a minimum of Rs 10,000 to a maximum of Rs 3,00,000, providing a substantial boost to women entrepreneurs from rural regions

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Under this agreement, Muthoot Microfin and SBI will co-lend to members of Joint Liability Groups (JLGs) who are engaged in agricultural and allied activities as well as other income-generating enterprises. The loan amounts will range from a minimum of Rs 10,000 to a maximum of Rs 3,00,000, providing a substantial boost to women entrepreneurs from rural regions.

Thomas Muthoot, Managing Director, Muthoot Microfin Ltd., stated, “India’s microfinance sector is experiencing sustained growth, and we are proud to be at the forefront of this transformation. Our collaboration with SBI will enable us to deepen our reach by addressing the diverse financial needs of rural women. Providing these women entrepreneurs with access to credit and supporting them in their entrepreneurial journey is our aspiration with this partnership. We are committed to make a positive and lasting impact on the lives of millions of rural women in India.”

Sadaf Sayeed, CEO, Muthoot Microfin Ltd said, “At Muthoot Microfin, we focus on the bottom of pyramid (BoP) households and promote women entrepreneurship. We constantly endeavor to provide innovative and cost-effective products to our BoP clientele. Making progress in this direction and to take financial inclusion to next level, we have collaborated with the largest bank, i.e., State bank of India. I am convinced that, with this partnership we will be able to offer wide range of products and services to our clients, most importantly it will help us in meeting the growing demand of our women entrepreneur clients in a cost-effective manner. Together with SBI, we are committed to fostering economic growth and self-sufficiency among women entrepreneurs in rural India.”

Muthoot Microfin is the fifth largest NBFC-microfinance company in terms of gross loan portfolio. The company provides micro-loans to women customers primarily for income generation purposes with a focus on rural regions of India.

The company’s consolidated net profit jumped 26.65% to Rs 119.76 crore in Q4 FY24 as compared with Rs 94.56 crore in Q4 FY23. Total income increased 45.80% YoY to Rs 653.42 crore in Q4 FY24.

The counter rallied 3.54% to end at Rs 220.85 on Thursday, 6 June 2024.

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