Muthoot Microfin: The Good and The Bad

About the company

Incorporated in 1992, Muthoot Microfin is India’s fifth-largest non-banking microfinance institution by gross loans (in FY23).

IPO details

Post IPO

Financial history

Key ratios

The positives

Strong brand. It is the second-largest company by AUM in the Muthoot Pappachan Group, a known name in the financial services industry.

The negatives

High cost of borrowing. Its cost of borrowing stood at 10.5 per cent in FY23, the second-highest among its peers.

The negatives

It operates in a highly competitive market comprising various small finance banks, banks, NBFCs, and other microfinance institutions.

Risk report

Has Muthoot Microfin increased its loan book by 20 per cent annually over the last three years? Yes, its loan book grew by 40 per cent annually between FY21 and FY23.

For the complete risk report, visit vro.in