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Muthoot Microfin Reports Profit Of Rs. 203 Crores For The Financial Year

In Business
May 08, 2023

Muthoot Microfin Limited, one of the leading microfinance companies in India has reported a 155% rise in profit to Rs. 203.31 crores for the financial year ended March 31, 2023. The company had posted profit of Rs. 79.7 crores in the previous financial year.

Muthoot Microfin has an asset under management of Rs. 9209 crores as of 31 st March 2023. The AUM has grown over 46% year on year from Rs. 6300 crores in the previous financial year. The asset quality of the company has also improved from 6.26% GNPA in FY22 to 2.97% in FY23 and 1.55 NNPA in FY22 to 0.60% in FY23.

The company’s customer base has increased by 35% to 2.77 million in FY23 from 2.05 million in FY22, fuelled by a 68% rise in disbursement to Rs. 8104 crores in FY23 from Rs. 4800 crores in the previous FY.

The company has a capital adequacy ratio of 21.87%, RoE of 14.12% and RoA at 2.50% as of March 31 st , 2023. The company has a provision coverage ratio of 80 percent.

Additionally, Muthoot Microfin has an ESG rating of 5 stars, signifying a sustainability leadership position with a positive track record of managing material risks. The microlender has a robust in-house IT Team that has worked on enhancing their digital collections, which has crossed Rs 1,000 crore in FY23 with a growth of 547 per cent YoY. Bank to bank and wallet to wallet digital collection of the company reached 34% as of March 2023. The customer App of the company ‘Mahila Mitra’ has crossed 1.3 million downloads with 7 lakh active customers taking advantage of it. In terms of expansion, the company is looking at starting operations is Andhra Pradesh and Telangana and further expand in north Indian states.