Muthoot Microfin AUM crosses ₹15,300 crore, cost of funds enters single digits

Muthoot Microfin Limited reported assets under management of ₹15,323 crore as of September 30, 2026, a 22 per cent increase year-on-year, as the microfinance lender posted broad-based operational gains for the second quarter of FY27.

Disbursements during Q2 FY27 stood at ₹2,900 crore, up 28 per cent from the same quarter last year and 10 per cent sequentially. The company’s cost of funds fell to 9.93 per cent during the quarter — the first time it has entered single-digit territory — declining 20 basis points from 10.13 per cent in Q1 FY27. Incremental cost of funds improved further to 9.69 per cent.

Collection efficiency strengthened to 98.11 per cent, an improvement of 477 basis points over Q2 FY26, while the X-Bucket collection efficiency excluding advances stood at 99.9 per cent.

The lender continued to reduce its reliance on joint liability group loans, with the JLG-to-non-JLG mix shifting to 69:31 from 83:17 in March 2026. The small and micro enterprise individual loan book grew to ₹4,164 crore. The company also disbursed ₹453 crore in gold loans through a co-lending arrangement with parent Muthoot Fincorp Limited.

As of September 30, the company operated 1,675 branches serving 32 lakh active customers. Digital collections rose to 47 per cent of total collections from 25 per cent a year earlier. The company raised ₹3,213 crore in Q2, with available liquidity and sanctioned credit lines totalling ₹6,029 crore.

The figures are provisional and unaudited.