Muthoot Microfin to maintain half of its portfolio from non-southern geographies
Summary
Sadaf Sayeed, CEO of Muthoot Microfin said the branch expansion undertaken over the past year will help in maintaining a healthy growth rate.
Muthoot Microfin, the microfinance arm of the Muthoot Pappachan Group, will continue to maintain 50% of its portfolio from the southern geographies in the long term. It has added Andhra Pradesh and Telangana to the portfolio.
The northern region is currently around 23% of portfolio, east is around 12% and the balance comes from the western parts of the country.
Sadaf Sayeed, CEO of Muthoot Microfin expects credit costs in the Microfinance institution (MFI) space to remain in the range of 1.5-2% over the long term..
The company opens around 225 branches every year. Last year, they had invested upfront and that will help them in good stead in terms of growth, he said.
The company provides micro-loans to women customers (primarily for income generation purposes) with a focus on rural regions of India. Muthoot Microfin’s business model helps in driving financial inclusion, as it serves customers who belong to low-income groups.
The company’s net profit rose 27% to ₹119.76 crore for the January-March quarter.
Net interest income (NII) for the quarter rose 47% to ₹400 crore.
Muthoot Microfin’s market capitalisation stands at approximately ₹4,046.63 crore, with its shares having declined nearly 0.59% over the last month.
Also Read | Muthoot Microfin shares list at 5.40% discount to IPO price
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