The equity infusion is aimed at strengthening the subsidiary’s capital base and improving its capital adequacy ratio. Funds raised through this issue will be utilised for business expansion, general corporate purposes, and repayment of existing loans.
Also Read: Muthoot Finance keeps FY26 guidance intact, sees potential for higher growth
Muthoot Money Limited operates in the non-banking financial services sector and remains a wholly-owned subsidiary of Muthoot Finance. Since Muthoot Finance already holds full ownership, the additional equity infusion does not alter the shareholding structure. The consideration for the transaction was in cash, and the process has been completed.
First quarter results
Muthoot Finance reported a 89.6% year-on-year (YoY) spike in net profit at ₹2,046 crore for the first quarter that ended June 30, 2025, the highest for any quarter. In the corresponding quarter of the previous fiscal, Muthoot Finance posted a net profit of ₹1,079 crore. The CNBC-TV18 poll had predicted a profit of ₹1,674 crore for the quarter under review.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, jumped 50.6%, coming at ₹3,473 crore against ₹2,305 crore in the corresponding quarter of FY25. The poll had predicted a net interest income of ₹3,199 crore.
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Net interest margin (NIM) during the quarter increased to 12.15% from 11.51% last year. On a consolidated basis, Muthoot Finance saw an improvement in its asset quality with the stage III assets to gross loan assets ratio improving to 2.58% from 3.41% in the March quarter.
Muthoot Finance reported its highest recorded consolidated loan assets under management (AUM) for the quarter, at ₹1,33 lakh crore, marking a 37% YoY increase. On a standalone basis, Muthoot reported an AUM growth of 42% from last year to ₹1.2 lakh crore.
Shares of Muthoot Finance Ltd ended at ₹2,645.60, down by ₹29.50 or 1.10%, on the BSE today (August 28).
(Edited by : Shoma Bhattacharjee)
