Archive · 7 Nov 2025
Muthoot Microfin CEO Outlines Growth Plans Amid Sector Recovery
Muthoot Microfin, a company that lends money to small groups, is feeling better after a tough time.
Their profits went down a lot this past quarter compared to last year, but they made more money than the previous quarter.
The CEO thinks the problems in the microfinance world are mostly over and they are focusing on lending more and making sure loans are good.
They gave out a good amount of money to people this quarter and plan to lend about Rs 6,000 crore in the next half of the year.
They used to only lend in special group loans, but now they are also offering loans to individuals, loans using property as collateral, and gold loans.
This helps them spread out their business.
They are also being more careful about who they lend to, using their own methods to pick good borrowers.
Their bad loans are going down, and they expect them to keep decreasing.
Muthoot Microfin's net profit fell over 50% year-on-year to Rs 31 crore in Q2, but rose fivefold sequentially.
CEO Sadaf Sayeed believes microfinance sector stress has peaked and the company is on a recovery path with improved credit costs.
Disbursements grew 28% quarter-on-quarter, with plans to disburse Rs 6,000 crore in the second half of the fiscal year.
The company is diversifying its product mix to include individual loans, loans against property (LAP), and gold finance alongside JLG loans.
Gross NPAs have declined to 4.6% from 4.8% quarter-on-quarter, with projections to fall below 4% by year-end.
- Who
- Muthoot Microfin CEO Sadaf Sayeed
- What
- Discussed company's financial performance, recovery from stress, disbursement plans, and asset diversification strategies.
- When
- Interview conducted for Q2 financial results; disbursement plans for the second half of the fiscal year.
- Where
- Not explicitly stated, likely an interview following financial results announcement.
- Why
- To provide insights into the company's performance and future strategy following a period of sector stress.
Industry View
Muthoot Microfin's Perspective
Microfinance Sector Stress
Industry View
Overall microfinance disbursements have declined significantly, by about 25% from Rs 4.4 lakh crore to Rs 3.32 lakh crore.
Muthoot Microfin's Perspective
Stress has peaked and the sector is on a recovery path, with Muthoot Microfin seeing sequential profit jumps and reduced credit costs.
Asset Quality (GNPA)
Industry View
Gross NPAs rose to 4.6% in Q2.
Muthoot Microfin's Perspective
GNPA has started to decline from 4.8% to 4.6% quarter-on-quarter, with expectations of falling below 4.5% next quarter and below 4% by year-end due to tightened credit policies and diversification.
- Company
- Muthoot Microfin
- CEO
- Sadaf Sayeed
- Q2 Net Profit
- Rs 31 crore (down over 50% YoY)
- Q2 Total Income
- Rs 577 crore
- Gross Loan Portfolio (Q2)
- Rs 12,558 crore (2.5% sequential growth)
- Credit Cost (Q2)
- 3.6%
- Gross NPAs (Q2)
- 4.6%
- Disbursements Planned (H2)
- Rs 6,000 crore
