Muthoot Mini Financiers, a Kerala-based non-banking financial company (NBFC) with operations across several Indian states, has received a bump in its credit rating. The rating agency ICRA has moved the company up to the 'A Stable' category, suggesting that its long-term borrowing structure appears relatively strong for now.
While this may sound like technical finance jargon, in simpler terms, it means the company seems to be doing a decent job of managing its loans and keeping things under control. No wild swings or major red flags—at least, not as per the latest review.
According to the company, ICRA's better rating was influenced by a few key things: stability in how the business is run, the strength of its assets (basically, what it owns), and its spread across multiple states. Muthoot Mini has branches across 12 states, not just in Kerala but also in places like Tamil Nadu, Karnataka, Maharashtra, Delhi, and even as far as Gujarat and Goa.
Managing Director Mathew Muthoot and CEO P.E. Mathai said the company has been able to navigate changing market conditions quite well. They also hinted that staying steady, keeping the books clean, and being disciplined with money matters may have helped improve the rating.
In financial terms, Muthoot Mini seems to have had a decent run. The company estimates that its total assets might cross ₹4,200 crore by the end of the current financial year.
Between April and December 2024, the company’s profit (after including tax) went up from ₹86.18 crore to ₹103.84 crore. That’s roughly a 20.5% increase. Profit after tax (what’s left after all expenses and taxes are taken care of) also saw a 24.35% jump—up from ₹60.04 crore to ₹74.66 crore.
One thing rating agencies often look at is how much money a company lends out that never comes back. In Muthoot Mini’s case, the percentage of such bad loans—known in the industry as non-performing assets or NPAs—was kept at 0.77%, which is considered relatively low in the lending world.
The company is also trying to spread its wings further into Tier 2 and Tier 3 cities. That means it’s looking to grow in smaller towns and semi-urban areas, which could open up new customer bases.
There’s no guarantee how things will play out in a fast-changing market, but for now, the signals seem to be positive. The company says it wants to keep its focus on quality service and customer trust as it expands.
Muthoot Mini currently runs 948 branches across India.
