Muthoot Microfin has returned to its normalised disbursement levels, with the company disbursing ₹2,492 crores in Q3, translating to an average monthly disbursement of around ₹830 crores. According to MD & CEO Sadaf Sayeed, this represents a significant improvement from the previous monthly average of ₹650 crores. The NBFC-MFI expects to sustain monthly loan disbursements of ₹1,000 crore through Q4 FY26 and beyond, as reported by The Hindu BusinessLine.
As at December-end 2025, the company's assets under management reached ₹13,078 crores, representing a growth of around 5.4% year-on-year and 4.1% quarter-on-quarter. This growth trajectory demonstrates the company's continued expansion despite market challenges. The diversification efforts are showing positive results as the company works towards its strategic portfolio rebalancing goals.
The company's portfolio composition has undergone significant transformation, with JLG (joint liability group) and non-JLG loans accounting for 88% and 12% respectively in the overall loan portfolio as of December-end 2025. According to Sayeed, this represents substantial progress from March 2025, when JLG loans comprised 97% of the portfolio. The company aims to reach an 85:15 ratio in the short term and eventually maintain a 65%-35% ratio in the long run to streamline portfolio risk.
JLGs are informal groups of 4-10 individuals, usually women, engaged in similar economic activities who offer mutual guarantees for loans. These groups avail collateral-free loans to farmers, tailors, small dairies, small vegetable vendors, and teashop owners. Non-JLG loans include secured products such as gold loans and micro loan against property. The diversification strategy aims to reduce concentration risk while maintaining the company's core microfinance business model.
