Sadaf Sayeed, CEO, Muthoot Microfin
Muthoot Microfin Ltd (MML) is eyeing a couple of non-banking finance companies (NBFCs), specialising in micro-loan against property (LAP), for acquisition as part of its strategy to grow its non-Joint Liability Group (non-JLG) loan portfolio amid plans to raise ₹500 crore via qualified institutional placement of equity shares. The company, which is registered with the RBI as a Non-Bank Finance Company- Micro Finance Institution (NBFC-MFI), is open to acquiring a NBFC focused on micro-LAP in the ₹5–15 lakh ticket-size category, said Sadaf Sayeed, CEO. “We are currently evaluating a couple of companies, which are regional players. The companies are growing but are not very large. Nothing has been finalised yet. “We would likely acquire one company rather than both. We expect the outgo (on account of the acquisition) to be around ₹200 crore. The acquisition would add approximately ₹500 crore to our portfolio,” MML’s chief said. On capital raising plans, he said in the short term, the company is expected to raise around ₹500 crore via a Qualified Institutional Placement (QIP) of equity shares. Change in loan mixAttributing the company’s ₹81.3 crore first quarter net profit (up 12 times over the year ago period’s ₹6.77 crore) to portfolio diversification into the non-JLG lending segments (such as individual loans, gold loans and micro-LAP), robust 49 per cent year-on-year (yoy) growth in disbursements and dip in credit cost, Sayeed expects MML to achieve a JLG (group lending): non-JLG mix of 60:40 in the overall assets under management (AUM) by 2028 instead of the earlier target of 2030. Currently, the JLG: non-JLG mix stands at 76:24 in the overall AUM and the same could improve to 75:25 by March-end 2027. MML’s chief said this portfolio diversification is already yielding positive results, particularly in terms of asset quality, with gross non-performing assets declining to 3.70 per cent of gross advances as at June-end 2026 from 4.85 per cent as at June-end 2025. Sayeed emphasised that out of MML’s 32.5 lakh customers, around 2.5 lakh have graduated from JLG to non-JLG portfolio so far. Further, the company also has around 8.5 lakh JLG customers with credit scores above 700 and many of these customers are expected to gradually move into non-JLG products over time. Consumer durable loans In a bid to further diversify its AUM, MML will soon be offering consumer durable loans. Sayeed observed that this is particularly relevant during the festival season, when many of MML’s customers want to buy products such as TV, refrigerators and washing machines. Published on August 13, 2026
