Muthoot Microfin AUM crosses ₹15,300 crore, cost of funds enters single digits
Disbursements during Q2 FY27 stood at ₹2,900 crore, up 28 per cent from the same quarter last year and 10 per cent sequentially
Muthoot Microfin Limited has reported a significant increase in assets under management (AUM) to ₹15,323 crore as of September 30, 2026, marking a 22 per cent year-on-year growth. The microfinance lender's operational gains were broad-based, with disbursements in Q2 FY27 rising by 28 per cent to ₹2,900 crore, up from the previous year.
A notable achievement was the cost of funds falling into the single-digit territory, reaching 9.93 per cent for the quarter, a 20 basis point decrease from Q1 FY27. This improvement in cost of funds followed a strengthening collection efficiency, which reached 98.11 per cent, an increase of 477 basis points compared to Q2 FY26. The lender also reduced its reliance on joint liability group loans, shifting the JLG-to-non-JLG mix to 69:31.
Additionally, the company disbursed ₹453 crore in gold loans through a co-lending arrangement with its parent, Muthoot Fincorp Limited, and expanded its small and micro enterprise individual loan book to ₹4,164 crore. As of September 30, Muthoot Microfin operated 1,675 branches serving 32 lakh active customers, with digital collections comprising 47 per cent of total collections, up from 25 per cent a year earlier.
The company raised ₹3,213 crore in Q2, with available liquidity and sanctioned credit lines totaling ₹6,029 crore.
Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
