Muthoot Microfin Enters Andhra Pradesh with New Branch in Chodavaram

On August 22, 2024, Muthoot Microfin, a leading microfinance institution in India, announced the opening of its first branch in Andhra Pradesh, located in Chodavaram.

Mr Udeesh Ullas, COO, and Mr Subhransu Pattnayak, CHRO of Muthoot Microfin, attended the inauguration. With this new branch, Muthoot Microfin has extended its presence to 20 states and now serves over 3.4 million customers. This expansion aims to bring Muthoot Microfin’s micro-lending expertise to Andhra Pradesh, supporting economic development in the state.

The new branch will focus on helping low-income families and women entrepreneurs by offering financial services tailored to their needs. The branch will provide income-generating loans and support, specifically targeting women-owned businesses. These efforts aim to promote financial inclusion, help women grow their small businesses, improve their livelihoods, and contribute to the overall growth of their communities.

Commenting on this strategic move, Mr Sadaf Sayeed, CEO of Muthoot Microfin, said, “The opening of the Chodavaram branch underscores our focus on providing accessible and affordable financial services to women. The branch will offer a range of microfinance solutions tailored to meet the specific needs of the local population, with a focus on quick turnaround times and hassle-free processing.”

He further added, “With our maiden entry in Andhra Pradesh, we now have a presence in all southern Indian states and will continue to strengthen our position to better serve and empower the women in their quest to achieve financial independence”.

Financial highlights

Muthoot Microfin’s financial performance showed strong growth in Q1FY25. Total income increased by 33.5% year-over-year (YoY), rising from ₹480 crore to ₹641 crore. The Assets Under Management (AUM) also grew by 21.6% YoY, from ₹10,038 crore in Q1FY24 to ₹12,210 crore in Q1FY25. The Net Interest Margin (NIM) improved by 123 basis points, reaching 13.29% compared to 12.05% in Q1FY24. Profit After Tax (PAT) saw an 18.3% YoY increase, going from ₹96 crore in Q1FY24 to ₹113 crore in Q1FY25.

About Muthoot Microfin Ltd

Muthoot Microfin Ltd, a part of the Muthoot Pappachan Group (also known as Muthoot Blue), is one of India’s leading listed microfinance institutions (MFIs). Building on a legacy of 138 years, the company upholds values of integrity, collaboration, and excellence. Its microfinance operations focus on promoting entrepreneurship among women and fostering inclusive growth by providing financial assistance through microloans, especially to women running small businesses.

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