ICRA Ratings Upgrades Muthoottu Mini Financiers to `A Stable`
Muthoottu Mini Financiers Ltd., one of India's leading NBFCs popularly known as Muthoottu Yellow, today announced that ICRA Ratings has assigned a credit rating of [ICRA] ‘A Stable’ for its Long term borrowings. The company's long term facilities were earlier rated as CARE A-; Stable and IND A-/ Stable respectively by CARE Ratings Limited and India Ratings and Research Private Limited. The upgrade in rating from a forefront credit rating agency like ICRA Ratings Limited reflects MMFL’s consistent financial performance, robust asset quality, and scalable operations across India.
During the first nine months of the financial year, from April-December 2024, the company reported strong financial growth, with PBT rising by 20.50% to Rs 103.84 crore from Rs 86.18 crore in the same period last year. Profit After Tax (PAT) during the same period also saw a significant increase of 24.35%, reaching ?74.66 crore compared to ?60.04 crore in the previous year. Additionally, the company maintained a robust asset quality, with Net NPA at a low level of 0.77% during the period, highlighting its robust risk management framework.
Muthoottu Mini Financiers' Assets Under Management (AUM) - is expected to reach ?4,200 crore by the end of the FY25, reflecting the company’s steady growth while balancing expansion and risk management responsibly.
Mr. Mathew Muthoottu, Managing Director, Muthoottu Mini Financiers Ltd., stated, “The ICRA rating upgrade is a testament to our commitment and focus on financial prudence and sustainable growth. Our performance in Q3 FY25, marked by robust revenue and profitability metrics, underscores our ability to deliver value even in dynamic market conditions. We remain committed to expanding our reach while ensuring operational excellency.”
Mr. P.E Mathai, CEO, Muthoottu Mini Financiers Ltd added “The significant growth of PAT and improvement in PBT reflect our operational efficiency and strategic investments in technology and talent. The credit rating upgrade by ICRA further validates our financial stability and disciplined approach to growth. As we deepen our presence in Tier 2 and Tier 3 cities, maintaining asset quality and customer trust remains paramount.”
MMFL’s network spans 948 branches across 12 states, including Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Haryana, Maharashtra, Gujarat, Delhi, Uttar Pradesh, Goa, and Puducherry. Supported by over 5,000 employees, the company continues to bridge financial inclusion gaps in underserved regions.
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