Muthoot Microfin Reports Highest Annual Loan Disbursement In FY24, AUM Rises 32% YoY In Q4

Muthoot Microfin, a company based in Kochi, reported a growth of 32 per cent year on-year (YoY) in its Assets Under Management (AUM) during the quarter that ended 31 March 2024 (Q4 FY24). The AUM grew from Rs 9,208 crore in the same period last year to Rs 12,194 crore. Additionally, the company reported its highest annual loan disbursement during FY24 at Rs 10,662 crore, a growth of 32 per cent YoY. The previous year's loan disbursements were at Rs 8,104 crore. 

In an exchange filing, Muthoot Microfin stated that it observed substantial growth during the quarter and the financial year. The company had a healthy mix of credit expansion, rising margins, and declining credit costs during FY24. Asset quality remained robust during the year. The company's key focus areas for the next year include AUM growth, asset quality, digital inclusion, customer retention, and geographic expansion.

Muthoot Microfin has reported a collection efficiency of 98.4 per cent for the fiscal year 2023-24, which is an increase of 260 basis points (bps) from the previous year's collection efficiency of 95.8 per cent. During the fiscal year 2023-24, the company availed funds amounting to Rs 9,242 crore through various instruments and had un-availed sanctions of Rs 2,112 crore during the closure of the financial year. The microfinance company also concluded an external commercial borrowing (ECB) deal with multiple international banks, raising USD 75 million (Rs. 622 crore). This deal provides cheaper funds and helps in achieving a better asset-liability mix with a loan timeframe of 3.3 years.

Muthoot Microfin's active customer count expanded by 21 per cent YoY to 33.5 lakh customers as of 31 March 2024, compared to 27.7 lakh customers as of 31 March 2023. The company added 10 lakh new customers during the fiscal year, and its Mahila Mitra app downloads (cumulative) have now reached 16.3 lakh customers.

In terms of total branch count, the company posted a 29 per cent YoY growth, taking the total count to 1,508. Muthoot Microfin recently expanded its footprint in Telangana and other states including Uttarakhand and Himachal.