Muthoot Microfin Limited operates as a microfinance company. The Company offers credit and other financial services to the peoples in rural, semi-urban, and urban areas. Muthoot Microfin serves customers in India. During the current year, Muthoot Microfin is in plans to raise up their profit to 350 crore by selling shares to fund the business growth.
Besides it, Muthoot Pappachan Group is also looking to raise Rs 100 crore from Tier-II bonds. As per the sources the fundraising would be through private placement to one or two investors towards December. The chief executive officer Sadaf Sayeed said in an interview that, “We are looking to garner USD 50 million or about Rs 350 crore equity capital to grow and build balacesheet of the company.” The capital growth will help company to expand its reach. Another growth of company is that, the company is looking for building their business in Uttarakhand. Currently the Muthoot Pappachan Group have it’s branches in Union territories and other 17 states. Even during the pandemic period the company hired 2,300 employees as it opened as many as 64 new offices across different parts of the country. The company is expects its asset under management (AUM) to increase to Rs 6,500 crore by March 2022 and further rise to Rs 8,000 crore in the next financial year. The company’s AUM rose 6 % to Rs 5,227 crore from Rs 4,932 crore at the end of Financial Year 2020. Capital adequacy ratio of the microfinance institution is at 26.75 per cent at the end of March 2021.
The company with an majority of South Indian presence is currently the sixth-largest NBFC-MFI in the country and has over 19 lakh woman entrepreneurs as active customers. By the end of Last year Capital adequacy ratio of the microfinance institution stood at 26.75%. At the moment the pandemic situation has had impact on the company too, but the business and collection should be back to normal once the pandemic is suppressed. On the delinquency, the present wave and the consequent lockdown in most of the cities will also have an impact on collection and there may be rise in non-performing assets (NPAs) on a temporary basis.
