From Financialexpress · Narayanan V · · 1m 30s
Muthoot Microfin CEO on Bank Lending Comfort
Muthoot Microfin CEO says banks now more comfortable lending to MFIs with surplus liquidity.
In brief
Muthoot Microfin CEO says banks now more comfortable lending to MFIs with surplus liquidity. Muthoot Microfin raised FY27 AUM growth guidance to 20% due to strong disbursements, lower borrowing costs, and improving credit quality in microfinance. Originally reported by Financialexpress.
Muthoot Microfin raises FY27 AUM growth guidance
Muthoot Microfin has raised its FY27 assets under management growth guidance to 20% from 12-15% at the beginning of the year.
Driven by strong disbursements and credit quality
Chief Executive Sadaf Sayeed says the upward revision is driven by strong disbursements, lower borrowing costs and improving credit quality in the microfinance sector.
₹250 crore NCD fundraise for diversified funding
Muthoot Microfin issued a ₹250 crore NCD at 9.25% which was fully subscribed after achieving AA rating.
₹4,200 crore fundraising so far this year
Muthoot Microfin has raised around ₹4,200 crore so far in this financial year with plans for ₹8,000 crore disbursements.
Banks more comfortable lending amid surplus liquidity
Banks have become more comfortable lending to microfinance institutions with surplus liquidity after FCNR(B) deposit mop-up.
Cost of funds drops to single digits
Muthoot Microfin has reduced its cost of funds by 14 basis points to 9.7% with incremental cost of funds dropping to single digits.
20% AUM growth target achieved
Muthoot Microfin has revised its FY27 AUM growth target to 20% with non-JLG portfolio at 24% and gold loans disbursing ₹100 crore monthly.
At a glance
Muthoot Microfin raised FY27 AUM growth guidance to 20% due to strong disbursements, lower borrowing costs, and improving credit quality in microfinance.
