Muthoot Microfin expects to sustain monthly loan disbursement of ₹1,000 crore through the fourth quarter of FY26 and beyond, against about ₹830 crore monthly average in the third quarter, even as its portfolio diversification efforts are gathering momentum, according to MD & CEO Sadaf Sayeed.
He noted that the NBFC-MFI (non-banking finance company – microfinance institution) is back to its normalised disbursements.
The company disbursed ₹2,492 crores in the third quarter, translating into an average monthly disbursement of around ₹830 crores. Prior to that, it was disbursing around ₹650 crores per month.
“..And in quarter 4, we will be back to around ₹1,000 crores of disbursement per month. So we are looking at healthy disbursements taking place,” Sayeed told analysts.
As at December-end 2025, the company’s assets under management reached ₹13,078 crores, which is a growth of around 5.4 per cent year-on-year (y-o-y) and 4.1 per cent quarter-on-quarter (q-o-q).
Portfolio diversification
As at December-end 2025, JLG (joint liability group) and non-JLG loans composition accounted for 88 per cent and 12 per cent, respectively, in the overall loan portfolio. In March 2025, the proportion of JLG loans stood at 97 per cent, with the balance being non-JLG loans.
“So it’s a good progress, and we are quite confident that, as we had guided, we would be able to reach at around 85:15 kind of a ratio in terms of our JLG and non-JLG mix. And in the long run, as we have guided, we would like to maintain a 65%-35% kind of a ratio. This will help streamline the risk in the portfolio that is there,” Sayeed said.
JLGs are informal groups of 4-10 individuals, usually women, engaged in similar economic activities. The members offer mutual guarantees for loans taken from lenders. JLG members avail of collateral-free loans to farmers, tailors, small dairies, small vegetable vendors, and teashop owners, among others.
Non-JLG loans include secured products such as gold loans and micro loan against property.
Published on February 16, 2026
