Muthoot Microfin expects 25-30% growth in loan disbursals this fiscal
The firm closed FY23 with a loan book of Rs 9,209 cr and a likely net income of Rs 200 cr
image for illustrative purpose
Mumbai: The third largest microlender Muthoot Microfin expects to disburse 25-30 per cent more loans this fiscal, taking its assets to around Rs 12,000 crore.
The Kerala-based firm, promoted by the diversified Muthoot Pappachen Group that's more known for its flagship gold loan business, closed FY23 with a loan book of Rs 9,209 crore and a likely net income of Rs 200 crore. In the pandemic-hit FY22, its loan book stood at Rs 6,300 crore from which it had earned Rs 79 crore of net income, chief executive Sadaf Sayeed said.
He attributed the massive loan book expansion to the low base in the pandemic hit year, and bases his optimism to maintain the momentum on the rising need for liquidity among its customers, even though the interest rates have risen. Given rising rates and the resultant higher spread, he expects a margin expansion and close the current fiscal with at least Rs 350 crore of profit. Sayeed said margin has improved from 10 per cent pre-May 2022 to over 12 per cent now.
He also bases his optimism of higher loan demand as the company is entering Telengana and Andhra--the two states that had crippled the industry towards the middle of last fiscal when the undivided Andhra Pradesh (the then largest MFI market) had banned private sector microfinance companies apart from capping interest rates along with a moratorium on repayments.
