July 01, 2024(Revised)

Muthoot Finance Limited: Ratings reaffirmed; rated amount enhanced

Summary of rating action

Previous Rated Current Rated

Instrument* Amount Amount Rating Action
(Rs. crore) (Rs. crore)
Non-convertible debenture 9,412.09 9,412.09 [ICRA]AA+ (Stable); reaffirmed
programme (public placement) 928.42 0.00 [ICRA]AA+ (Stable); reaffirmed and withdrawn
Non-convertible debenture 14,415.00 14,415.00 [ICRA]AA+ (Stable); reaffirmed
programme 0.00 6,500.00 [ICRA]AA+ (Stable); assigned
Long-term/Short-term – Fund-based/ [ICRA]AA+(Stable)/[ICRA]A1+;
42,015.00# 44,515.00##
Non-fund based bank facilities reaffirmed/assigned
Subordinated debt programme 250.50 250.50 [ICRA]AA+ (Stable); reaffirmed
Commercial paper programme 5,000.00 7,000.00 [ICRA]A1+; reaffirmed/assigned
Total 72,021.01 82,092.59
*Instrument details are provided in Annexure I
# Includes an interchangeable limit of Rs. 5,607.00 crore between long-term and short-term limits, and an unallocated limit of Rs. 4,637.36 crore
## Includes an interchangeable limit of Rs. 5,607.00 crore between long-term and short-term limits, and an unallocated limit of Rs. 5,009.36 crore

Rationale
The ratings factor in Muthoot Finance Limited’s (MFL) financial risk profile, characterised by its comfortable capitalisation and
healthy earnings profile, notwithstanding the increasing competitive pressure in the gold loan segment in recent years. MFL’s
gold loan book has more than doubled over the last five years to Rs. 72,878 crore as of March 2024 and accounted for about
82% of its consolidated portfolio. The segment reported a growth of 18% in FY2024 vis-à-vis the group loan portfolio growth
of 25%. The ratings continue to consider MFL’s long track record and leadership position in the gold loan segment, its
established franchise with a pan-India branch network, and its efficient internal control and monitoring systems. MFL’s ability
to raise funds from diverse sources and the short-term nature of gold loans result in a strong liquidity profile.

ICRA, however, notes the performance of the non-gold segments, which have a relatively lower vintage. The sustained good
quality growth and earnings performance of these segments would remain a monitorable. Some of the asset segments, namely
microfinance (11.3% of the consolidated assets under management (AUM) as of March 2024), affordable housing (2.3%) and
vehicle finance (1.3%), recorded gross stage 3 (GS3) of 1.8%, 1.9% and 1.5%, respectively, vis-à-vis 3.3% in the gold loan
segment as of March 2024 (improved from 3.8% as of March 2023). ICRA takes note of the lower gold loan auctions undertaken
by MFL in FY2024 vis-à-vis FY2023 and FY2022 which occurred largely on account of the loans that were originated when gold
prices were high and there were Covid-19 pandemic-related defaults. The gold loan auctions undertaken in FY2024 stood at
Rs. 892 crore vis-à-vis Rs. 2,203 crore and Rs. 5,211 crore in FY2023 and FY2022 respectively,. The average portfolio loan-to-
value (LTV) stood at 63% as of March 2024 as well as March 2023, supported by higher gold prices. ICRA noted that MFL has
discontinued cash disbursements of more than Rs. 20,000 in the gold loan segment (from May 2024), in line with the regulatory
direction. While the impact on the business growth is expected to be limited, the same would be a monitorable in the near
term.

ICRA expects the consolidated earnings performance to remain healthy at 4.0-5.0% over the medium term, as gold loans
continue to account for 80-85% of the overall lending portfolio. Moreover, recoveries from gold loan overdues are expected
to be good, which would keep the credit costs under control. Managing the net interest margin (NIM), going forward, in an
increasing interest rate and competitive business environment, would be monitorable. MFL’s capitalisation profile,

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 characterised by a consolidated managed gearing of 2.7 times as of March 2024 and 2.6 times as of March 2023 (2.9-3.5 times
during FY2018-FY2022), would remain comfortable over the medium term, supported by healthy accruals and moderate
growth expectations.

ICRA takes note of the geographical concentration of the branches and the loan book in South India. South India accounts for
59% of MFL’s gold loan branches, contributing about 47% to the gold loan book. A demonstrated track record in the non-gold
segments and a steady improvement in geographical diversity would be key, going forward, from a rating perspective.

ICRA has also reaffirmed and withdrawn the long-term rating on the Rs. 928.42-crore non-convertible debentures in
accordance with its policy on the withdrawal of credit ratings as the instruments have matured and have been fully repaid.

The Stable outlook factors in ICRA’s expectation that MFL will continue to benefit from its established operational track record
in the gold loan business, which is projected to account for 80-85% of the consolidated loan AUM over the medium term, and
the comfortable overall financial risk profile.

Key rating drivers and their description

Credit strengths

Established franchise and leadership position in gold loan segment – MFL has a track record of around two decades in the
gold loan business and is India’s largest gold loan focussed non-banking financial company (NBFC) with a total portfolio of Rs.
75,827 crore (gold loan: 98%) as of March 2024; the portfolio grew by 20.0% on a YoY basis. The consolidated loan portfolio
stood at Rs. 89,079 crore as of March 2024 compared to Rs. 71,497 crore as of March 2023, of which gold, microfinance and
housing accounted for 81.8%, 11.3% and 2.3%, respectively.

As of March 2024, MFL had an extensive pan-India network of 4,854 branches; 59% of its branches are in South India, where
it has an established franchise. The strong brand value of Muthoot, its experienced promoters and senior management team,
and its efficient internal controls and audit systems are expected to support the overall business growth going forward.

Healthy earnings performance, notwithstanding moderation due to significant competitive pressure in recent years – The
company’s consolidated net profitability (profit after tax/average managed assets; PAT/AMA) improved to 5.0% in FY2024
from 4.6% in FY2023 as better yields led to healthy margins despite the increasing borrowing cost. However, the profitability
has been on a moderating trend over the longer term, declining from 6.1% in FY2021 (5.5% in FY2022), notwithstanding the
reduction in on-balance sheet liquidity. Nevertheless, the earnings performance continues to be supported by the low credit
costs (less than 1% over the last 10 years and average of 0.5%) in the gold loan business. ICRA expects the net profitability to
remain at 4.0-5.0% over the medium term.

The share of higher ticket loans (> Rs. 3 lakh), which generally have lower yields and face more competition, increased over
the last few years and stood at 29% as of March 2024. The operating cost ratio has inched up in recent quarters and stood at
3.4% in FY2024 and 3.3% in FY2023 from 3.0% in FY2022 because of higher business promotion costs and employee costs (3.3%
in FY2021; 4.3-4.6% during FY2017-FY2020).

MFL’s (standalone) net profitability was 5.1% in FY2024 and 4.9% in FY2023 (5.9% in FY2022). The annualised return on average
net worth (standalone) was 17.9% in FY2024 and 17.6% in FY2023 (23.5% in FY2022).

Capitalisation to remain comfortable over the medium term – MFL has a comfortable capitalisation profile with a standalone
gearing of 2.4 times as of March 2024 and March 2023 (2.8 times as of March 2022), aided by good internal generation. The
consolidated managed gearing stood at 2.7 times as of March 2024 and 2.6 times as of March 2023 (2.9 times as of March
2022). MFL’s standalone net worth was Rs. 24,290.3 crore as of March 2024 and Rs. 21,061.9 crore as of March 2023 (Rs.
18,344.6 crore as on March 31, 2022). The company is expected to be comfortably placed to meet the medium-term capital
requirements of its subsidiaries without affecting its own capital structure. ICRA expects MFL’s consolidated managed gearing
to remain below 4.0 times over the medium term.

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 Credit challenges

Performance of non-gold segments to remain monitorable; sizeable share of gold loans would support overall portfolio
quality – MFL’s standalone portfolio mainly consists of gold loans (96%) with unsecured loans, in the form of personal loans
and business loans, largely comprising the balance. It has diversified its exposure via its subsidiaries, namely Belstar
Microfinance Limited (Belstar; microfinance), Muthoot Homefin (India) Limited (MHL; affordable housing) and Muthoot Money
Limited (MML; vehicle finance). At present, the consolidated loan portfolio is concentrated towards gold loans, comprising
81.8% of the loan book while microfinance, affordable housing and vehicle finance accounted for 11.3%, 2.3% and 1.3%,
respectively, as of March 2024. The loan books of Belstar, MHL and MML grew by 62%, 42% and 190%, respectively, on a YoY
basis as of March 2024. The GS3 for the subsidiary companies, viz., Belstar, MHL and MML, stood at 1.8%, 1.9% and 1.5%,
respectively, as of March 2024 against 2.4%, 4.0% and 3.7%, respectively, as of March 2023. The performance of the non-gold
segments was impacted by pandemic-related disruptions because of the unsecured nature of the microfinance business and
the average credit profile of the borrowers in the housing and vehicle finance segments.

MFL’s GS3 improved to 3.3% as of March 2024 from 3.8% as of March 2023 (3.0% as of March 2022). ICRA notes the company’s
track record in containing credit costs in the gold segment and achieving recoveries in auctions where it typically recovers the
principal and a sizeable share of the accrued interest on such loans. ICRA takes note of the lower gold loan auctions undertaken
by MFL in FY2024 against FY2023 and FY2022, largely because the loans had been originated when gold prices were high and
there were pandemic-related defaults. The gold loan auctions undertaken in FY2024 stood at Rs. 892 crore, , vis-à-vis Rs. 2,203
crore and Rs. 5,211 crore in FY2023 and FY2022 respectively. The average portfolio LTV stood at 63% as of March 2024 as well
as March 2023, supported by higher gold prices.

ICRA expects MFL’s asset quality in the gold loan segment, which accounts for the bulk of the consolidated AUM, to remain
under control with low credit costs. The overall asset quality and credit costs are expected to remain under control as the
subsidiaries are projected to account for 15-20% of the consolidated portfolio over the medium term. MFL’s ability to profitably
grow its non-gold businesses while maintaining good asset quality would be crucial over the medium to long term, considering
the unsecured nature of some of these businesses and the higher inherent risks in these segments compared to gold loans.

Operations concentrated in South India – MFL’s operations are largely concentrated in South India, which constituted 59% of
its total branch network and 47% of its total loan portfolio as of March 2024. ICRA, however, notes that the share of the
portfolio in South India has reduced from 57% in March 2015. Geographical diversification is expected to improve steadily over
the medium to long term with an improvement in the scale of the gold loan portfolio and the stabilisation of the performance
of the non-gold asset segments.

Environmental and social risks

Environmental considerations: Given the service-oriented business of MFL, its direct exposure to environmental risks/material
physical climate risks is not significant. Lending institutions can be exposed to environmental risks indirectly through their
portfolio of assets, though such risks are not material for MFL as its lending operations primarily encompass gold loans.
Nevertheless, there is increasing interest from policymakers towards identifying the exposure of financing companies to
carbon emissions through their financing activities. This process is, however, in an early stage and ICRA expects any adverse
implications to manifest only over a longer time horizon, giving financing companies adequate time to adapt and minimise the
credit implications.

Social considerations: With regard to social risks, data security and customer privacy are among the key sources of vulnerability
for lending institutions as material lapses could be detrimental to their reputation and invite regulatory censure. MFL has not
faced any significant lapses in this regard. It serves the financing needs of a relatively underserved category of borrowers,
which supports social inclusion and economic development.

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 Liquidity position: Strong

MFL had cash and liquid investments of Rs. 6,883 crore and undrawn bank lines of Rs. 329 crore as on June 10, 2024, with a
repayment obligation (excluding interest) of Rs. 11,162 crore between June 11, 2024 and August 31, 2024. A sizeable portion
of the repayments (Rs. 6,080 crore) comprises cash credit/short-term loans from banks, which are expected to be rolled over,
while the term loan, non-convertible debenture (NCD) and commercial paper (CP) repayments are Rs. 2,561 crore, Rs. 1,337
crore and Rs. 1,184 crore, respectively, during the above-mentioned period. The short-term nature of gold loans provides
support to the company’s liquidity profile.

MFL has a fairly diversified funding profile with bank/financial institution (FI) loans constituting 63% of its total borrowings as
of March 2024, followed by NCDs (28%) and CP (8%).

Rating sensitivities

Positive factors – Maintaining comfortable asset quality and capitalisation over the medium to long term will be a positive. A
track record of good performance in the non-gold segments and improvement in geographical diversity would also positively
impact the rating.

Negative factors – An increase in the share of the unsecured asset segment to more than 15% or significant weakening in the
asset quality, thereby impacting the earnings, would have a negative impact. The increase in MFL’s consolidated gearing
beyond 4.5 times on a sustained basis would also negatively impact the ratings.

Analytical approach

Analytical Approach Comments

Rating Methodology for Non-banking Finance Companies
Applicable rating methodologies
Policy on Withdrawal of Credit Ratings

Parent/Group support Not applicable

To arrive at the ratings, ICRA has considered the consolidated financials of the Muthoot
Consolidation/Standalone Finance Group. The consolidated financials of the Group include seven subsidiaries as listed
in Annexure II

About the company

Muthoot Finance Limited (MFL) is the flagship company of the Kerala-based business house, The Muthoot Group, which has
diversified operations in financial services, healthcare, education and hospitality. MFL was incorporated in 1997 and is India’s
largest gold loan focussed NBFC with total loan assets (standalone) of Rs. 75,827 crore and 4,854 branches as of March 2024.
The company derives a major portion of its business from South India (47% of the total gold loan portfolio as of March 2024),
where gold loans have traditionally been accepted as a means of availing short-term credit, although it has increased its
presence beyond South India over the last few decades .

MFL reported a standalone net profit of Rs. 4,050 crore on an asset base of Rs. 85,028 crore in FY2024 against a net profit of
Rs. 3,474 crore on an asset base of Rs. 72,620 crore in FY2023. The consolidated loan portfolio stood at Rs. 89,079 crore as of
March 2024 compared to Rs. 71,497 crore as of March 2023 (Rs. 64,494 crore as of March 2022), with gold, microfinance and
housing accounting for 82%, 11% and 2%, respectively.

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 Key financial indicators (audited)

Standalone Consolidated
Muthoot Finance Limited FY2022 FY2023 FY2024 FY2022 FY2023 FY2024
Total income 11,091 10,531 12,694 12,238 11,975 15,163
Profit after tax 3,954 3,474 4,050 4,031 3,670 4,468
Total managed assets 70,555 72,620 85,028 77,387 81,979 98,259

Return on managed assets 5.9% 4.9% 5.1% 5.5% 4.6% 5.0%

Managed gearing (times)^ 2.8 2.4 2.4 2.9 2.6 2.7
Gross stage 3 3.0% 3.8% 3.3% - - -
CRAR 30.0% 31.8% 30.4% - - -
Source: Company, ICRA Research; All ratios as per ICRA’s calculations; * Provisional; Amount in Rs. crore
^ Managed gearing = (on-book debt + off-book portfolio)/ net worth

Status of non-cooperation with previous CRA: Not applicable

Any other information: None

Rating history for past three years

Current Rating (FY2025) Chronology of Rating History
for the Past 3 Years
Date & Rating in FY2025 Date & Rating Date & Rating Date & Rating
in FY2024 in FY2023 in FY2022
Instrument Amount Amount
May 09, 2023
Type Rated Outstanding Jul 08, 2022 Jul 30, 2021
Aug 28, 2023
(Rs. crore) (Rs. crore) Jul 01, 2024 May 17, 2024 Nov 11, 2022 Feb 02, 2022
Nov 02, 2023
Mar 03, 2023 Mar 02, 2022
Jan 29, 2024
NCD programme [ICRA]AA+ [ICRA]AA+ [ICRA]AA+ [ICRA]AA+ [ICRA]AA+
LT 9,412.09 9,412.09
(public placement) (Stable) (Stable) (Stable) (Stable) (Stable)
[ICRA]AA+ [ICRA]AA+ [ICRA]AA+ [ICRA]AA+ [ICRA]AA+
NCD programme LT 14,415.00 14,415.00
(Stable) (Stable) (Stable) (Stable) (Stable)
[ICRA]AA+
NCD programme LT 6,500.00 - - - - -
(Stable)
Long term/Short
[ICRA]AA+ [ICRA]AA+ [ICRA]AA+ [ICRA]AA+ [ICRA]AA+
term – Fund- LT/
44,515.00## 44,515.00## (Stable)/ (Stable)/ (Stable)/ (Stable)/ (Stable)/
based/Non-fund ST
[ICRA]A1+ [ICRA]A1+ [ICRA]A1+ [ICRA]A1+ [ICRA]A1+
based bank facilities
Subordinated debt [ICRA]AA+ [ICRA]AA+ [ICRA]AA+ [ICRA]AA+ [ICRA]AA+
LT 250.50 250.50
programme (Stable) (Stable) (Stable) (Stable) (Stable)
CP programme ST 7,000.00 7,000.00 [ICRA]A1+ [ICRA]A1+ [ICRA]A1+ [ICRA]A1+ [ICRA]A1+
##Includes an interchangeable limit of Rs. 5,607.00 crore between long-term and short-term limits, and an unallocated limit of Rs. 5,009.36 crore
LT – Long term; ST – Short term

Complexity level of the rated instruments

Instrument Complexity indicator
NCD programme Simple
Bank facilities Simple
Subordinated debt programme Moderately Complex
Commercial paper Very Simple

The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated.
It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's

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 credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or
complexity related to the structural, transactional or legal aspects. Details on the complexity levels of the instruments are
available on ICRA’s website: Click Here

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 Annexure I: Instrument details
Date of Amount
Coupon Rate Current Rating and
ISIN Instrument Name Issuance / Maturity Date Rated
(%) Outlook
Sanction (Rs. crore)
INE414G07DQ9 NCD programme (public) Jun 14, 2019 Zero Coupon Dec 14, 2026 32.24 [ICRA]AA+ (Stable)
INE414G07DV9 NCD programme (public) Nov 01, 2019 Zero Coupon Nov 01, 2024 89.82 [ICRA]AA+ (Stable)
INE414G07DY3 NCD programme (public) Nov 01, 2019 Zero Coupon Nov 01, 2024 53.62 [ICRA]AA+ (Stable)
INE414G07EB9 NCD programme (public) Nov 01, 2019 Zero Coupon Nov 01, 2024 14 [ICRA]AA+ (Stable)
INE414G07EC7 NCD programme (public) Nov 01, 2019 Zero Coupon May 01, 2027 43.2 [ICRA]AA+ (Stable)
INE414G07EJ2 NCD programme (public) Dec 27, 2019 Zero Coupon Dec 27, 2024 81.83 [ICRA]AA+ (Stable)
INE414G07EM6 NCD programme (public) Dec 27, 2019 Zero Coupon Dec 27, 2024 54.38 [ICRA]AA+ (Stable)
INE414G07EF0 NCD programme (public) Dec 27, 2019 Zero Coupon Dec 27, 2024 12.66 [ICRA]AA+ (Stable)
INE414G07EG8 NCD programme (public) Dec 27, 2019 Zero Coupon Jun 27, 2027 44.6 [ICRA]AA+ (Stable)
INE414G07FE0 NCD programme (public) Nov 05, 2020 7.50 & 7.75 Nov 05, 2025 37.32 [ICRA]AA+ (Stable)
INE414G07FG5 NCD programme (public) Nov 05, 2020 7.75 & 8.00 Nov 05, 2025 75.71 [ICRA]AA+ (Stable)
INE414G07FI1 NCD programme (public) Nov 05, 2020 Zero Coupon Nov 05, 2025 29.52 [ICRA]AA+ (Stable)
INE414G07FK7 NCD programme (public) Jan 11, 2021 7.50 & 7.10 Jan 11, 2026 43.03 [ICRA]AA+ (Stable)
INE414G07FM3 NCD programme (public) Jan 11, 2021 7.75 & 7.35 Jan 11, 2026 55.38 [ICRA]AA+ (Stable)
INE414G07FO9 NCD programme (public) Jan 11, 2021 Zero Coupon Jan 11, 2026 44.96 [ICRA]AA+ (Stable)
INE414G07FR2 NCD programme (public) Apr 20, 2021 7.60 & 7.35 Apr 20, 2026 17.16 [ICRA]AA+ (Stable)
INE414G07FU6 NCD programme (public) Apr 20, 2021 7.85 & 7.60 Apr 20, 2026 384.81 [ICRA]AA+ (Stable)
INE414G07FV4 NCD programme (public) Apr 20, 2021 8.25 & 8.00 Apr 20, 2031 229.05 [ICRA]AA+ (Stable)
INE414G07FX0 NCD programme (public) Apr 20, 2021 Zero Coupon Apr 20, 2026 61.77 [ICRA]AA+ (Stable)
INE414G07GD0 NCD programme (public) May 05, 2022 7.00 & 6.50 May 05, 2025 52.65 [ICRA]AA+ (Stable)
INE414G07GE8 NCD programme (public) May 05, 2022 7.25 & 6.75 May 05, 2027 52.67 [ICRA]AA+ (Stable)
INE414G07GF5 NCD programme (public) May 05, 2022 7.25 & 6.75 May 05, 2025 111.66 [ICRA]AA+ (Stable)
INE414G07GG3 NCD programme (public) May 05, 2022 7.50 & 7.00 May 05, 2027 37.52 [ICRA]AA+ (Stable)
INE414G07GH1 NCD programme (public) May 05, 2022 7.75 & 7.25 May 05, 2029 8.62 [ICRA]AA+ (Stable)
INE414G07GI9 NCD programme (public) May 05, 2022 8.00 & 7.50 May 05, 2032 23.72 [ICRA]AA+ (Stable)
INE414G07GJ7 NCD programme (public) May 05, 2022 Zero Coupon May 05, 2025 62.64 [ICRA]AA+ (Stable)
INE414G07GK5 NCD programme (public) May 05, 2022 Zero Coupon May 05, 2027 28.23 [ICRA]AA+ (Stable)
INE414G07GL3 NCD programme (public) Jun 23, 2022 7.25 & 6.75 Jun 23, 2025 62.78 [ICRA]AA+ (Stable)
INE414G07GM1 NCD programme (public) Jun 23, 2022 7.50 & 7.00 Jun 23, 2027 35.4 [ICRA]AA+ (Stable)
INE414G07GN9 NCD programme (public) Jun 23, 2022 7.50 & 7.00 Jun 23, 2025 51.82 [ICRA]AA+ (Stable)
INE414G07GO7 NCD programme (public) Jun 23, 2022 7.75 & 7.25 Jun 23, 2027 13.07 [ICRA]AA+ (Stable)
INE414G07GP4 NCD programme (public) Jun 23, 2022 8.00 & 7.50 Jun 23, 2029 35.6 [ICRA]AA+ (Stable)
INE414G07GQ2 NCD programme (public) Jun 23, 2022 Zero Coupon Jun 23, 2025 48.32 [ICRA]AA+ (Stable)
INE414G07GR0 NCD programme (public) Jun 23, 2022 Zero Coupon Jun 23, 2027 18.19 [ICRA]AA+ (Stable)
INE414G07GU4 NCD programme (public) Nov 03, 2022 7.50 & 7.00 Nov 03, 2025 48.84 [ICRA]AA+ (Stable)
INE414G07GV2 NCD programme (public) Nov 03, 2022 7.75 & 7.25 Nov 03, 2027 35.13 [ICRA]AA+ (Stable)
INE414G07GW0 NCD programme (public) Nov 03, 2022 7.50 & 7.00 Nov 03, 2024 40.94 [ICRA]AA+ (Stable)
INE414G07GX8 NCD programme (public) Nov 03, 2022 7.75 & 7.25 Nov 03, 2025 28.98 [ICRA]AA+ (Stable)
INE414G07GY6 NCD programme (public) Nov 03, 2022 8.00 & 7.50 Nov 03, 2027 25.64 [ICRA]AA+ (Stable)
INE414G07HA4 NCD programme (public) Nov 03, 2022 Zero Coupon Nov 03, 2025 49.21 [ICRA]AA+ (Stable)
INE414G07GZ3 NCD programme (public) Nov 03, 2022 Zero Coupon Nov 03, 2027 38.98 [ICRA]AA+ (Stable)
INE414G07HB2 NCD programme (public) Dec 23, 2022 7.85 & 7.35 Dec 23, 2025 20.00 [ICRA]AA+ (Stable)
INE414G07HH9 NCD programme (public) Dec 23, 2022 8.00 & 7.50 Dec 23, 2027 22.56 [ICRA]AA+ (Stable)
INE414G07HC0 NCD programme (public) Dec 23, 2022 7.75 & 7.25 Dec 23, 2024 18.18 [ICRA]AA+ (Stable)
INE414G07HD8 NCD programme (public) Dec 23, 2022 8.10 & 7.60 Dec 23, 2025 26.25 [ICRA]AA+ (Stable)
INE414G07HE6 NCD programme (public) Dec 23, 2022 8.25 & 7.75 Dec 23, 2027 21.07 [ICRA]AA+ (Stable)
INE414G07HF3 NCD programme (public) Dec 23, 2022 Zero Coupon Dec 23, 2025 26.29 [ICRA]AA+ (Stable)
INE414G07HG1 NCD programme (public) Dec 23, 2022 Zero Coupon Dec 23, 2027 20.75 [ICRA]AA+ (Stable)
INE414G07HL1 NCD programme (public) Mar 10, 2023 8.25 & 7.75 Apr 10, 2026 52.08 [ICRA]AA+ (Stable)
INE414G07HM9 NCD programme (public) Mar 10, 2023 8.35 & 7.85 Apr 10, 2028 27.81 [ICRA]AA+ (Stable)
INE414G07HN7 NCD programme (public) Mar 10, 2023 8.25 & 7.75 Apr 10, 2025 34.00 [ICRA]AA+ (Stable)
INE414G07HR8 NCD programme (public) Mar 10, 2023 8.50 & 8.00 Apr 10, 2026 46.96 [ICRA]AA+ (Stable)
INE414G07HQ0 NCD programme (public) Mar 10, 2023 8.60 & 8.10 Apr 10, 2028 21.31 [ICRA]AA+ (Stable)
INE414G07HP2 NCD programme (public) Mar 10, 2023 Zero Coupon Apr 10, 2026 50.53 [ICRA]AA+ (Stable)
INE414G07HO5 NCD programme (public) Mar 10, 2023 Zero Coupon Apr 10, 2028 24.96 [ICRA]AA+ (Stable)

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 Date of Amount
Coupon Rate Current Rating and
ISIN Instrument Name Issuance / Maturity Date Rated
(%) Outlook
Sanction (Rs. crore)
INE414G07HY4 NCD programme (public) May 03, 2023 8.25 & 7.75 Jun 03, 2026 26.62 [ICRA]AA+ (Stable)
INE414G07HZ1 NCD programme (public) May 03, 2023 8.35 & 7.85 Jun 03, 2028 24.88 [ICRA]AA+ (Stable)
INE414G07IA2 NCD programme (public) May 03, 2023 8.25 & 7.75 Jun 03, 2025 21.04 [ICRA]AA+ (Stable)
INE414G07IB0 NCD programme (public) May 03, 2023 8.50 & 8.00 Jun 03, 2026 29.96 [ICRA]AA+ (Stable)
INE414G07IC8 NCD programme (public) May 03, 2023 8.60 & 8.10 Jun 03, 2028 26.70 [ICRA]AA+ (Stable)
INE414G07ID6 NCD programme (public) May 03, 2023 Zero Coupon Jun 03, 2026 28.92 [ICRA]AA+ (Stable)
INE414G07IE4 NCD programme (public) May 03, 2023 Zero Coupon Jun 03, 2028 20.48 [ICRA]AA+ (Stable)
INE414G07IJ3 NCD programme (public) Oct 04, 2023 Zero Coupon Oct 04, 2028 17.20 [ICRA]AA+ (Stable)
INE414G07IK1 NCD programme (public) Oct 04, 2023 8.75 & 7.75 Oct 04, 2026 205.11 [ICRA]AA+ (Stable)
INE414G07IL9 NCD programme (public) Oct 04, 2023 8.75 & 7.75 Oct 04, 2028 35.73 [ICRA]AA+ (Stable)
INE414G07IM7 NCD programme (public) Oct 04, 2023 8.75 & 7.75 Oct 04, 2025 52.80 [ICRA]AA+ (Stable)
INE414G07IN5 NCD programme (public) Oct 04, 2023 9.00 & 8.00 Oct 04, 2026 209.58 [ICRA]AA+ (Stable)
INE414G07IO3 NCD programme (public) Oct 04, 2023 9.00 & 8.00 Oct 04, 2028 157.63 [ICRA]AA+ (Stable)
INE414G07IP0 NCD programme (public) Oct 04, 2023 Zero Coupon Oct 04, 2026 21.95 [ICRA]AA+ (Stable)
INE414G07IT2 NCD programme (public) Jan 25, 2024 8.75 & 8.25 Jan 25, 2029 30.80 [ICRA]AA+ (Stable)
INE414G07IU0 NCD programme (public) Jan 25, 2024 8.75 & 8.25 Jan 25, 2026 48.34 [ICRA]AA+ (Stable)
INE414G07IV8 NCD programme (public) Jan 25, 2024 9.00 & 8.50 Jan 25, 2027 148.08 [ICRA]AA+ (Stable)
INE414G07IW6 NCD programme (public) Jan 25, 2024 8.75 & 8.25 Jan 25, 2027 68.48 [ICRA]AA+ (Stable)
INE414G07IX4 NCD programme (public) Jan 25, 2024 Zero Coupon Jan 25, 2029 73.97 [ICRA]AA+ (Stable)
INE414G07IY2 NCD programme (public) Jan 25, 2024 Zero Coupon Jan 25, 2027 64.51 [ICRA]AA+ (Stable)
INE414G07IZ9 NCD programme (public) Jan 25, 2024 9.00 & 8.50 Jan 25, 2027 46.27 [ICRA]AA+ (Stable)
Yet to be placed NCD programme (public) - - - 5,324.62 [ICRA]AA+ (Stable)
Total – NCD programme (public) 9,412.09
INE414G07ET1 NCD programme Jun 18, 2020 9.5 Jun 18, 2025 125.00 [ICRA]AA+ (Stable)
INE414G07FY8 NCD programme May 31, 2021 7.9 May 30, 2031 215.00 [ICRA]AA+ (Stable)
INE414G07GA6 NCD programme Feb 17, 2022 6.87 Feb 27, 2025 500.00 [ICRA]AA+ (Stable)
INE414G07GS8 NCD programme Sep 16, 2022 7.75 Sep 30, 2025 240.00 [ICRA]AA+ (Stable)
INE414G07HI7 NCD programme Dec 22, 2022 8.30 Jan 06, 2026 195.00 [ICRA]AA+ (Stable)
INE414G07HK3 NCD programme Jan 19, 2023 8.50 Jan 29, 2026 1,000.00 [ICRA]AA+ (Stable)
INE414G07HS6 NCD programme Feb 24, 2023 8.65 May 25, 2026 160.00 [ICRA]AA+ (Stable)
INE414G07HT4 NCD programme Feb 24, 2023 8.60 Aug 25, 2025 440.00 [ICRA]AA+ (Stable)
INE414G07HU2 NCD programme Mar 15, 2023 8.65 Dec 15, 2026 500.00 [ICRA]AA+ (Stable)
INE414G07HV0 NCD programme Mar 15, 2023 8.65 Mar 15, 2027 500.00 [ICRA]AA+ (Stable)
INE414G07HW8 NCD programme Mar 23, 2023 8.65 Mar 23, 2026 250.00 [ICRA]AA+ (Stable)
INE414G07HX6 NCD programme Mar 23, 2023 8.65 Sep 23, 2027 250.00 [ICRA]AA+ (Stable)
INE414G07IF1 NCD programme Apr 24, 2023 8.50 Apr 24, 2028 700.00 [ICRA]AA+ (Stable)
INE414G07IG9 NCD programme May 03, 2023 8.43 Jul 31, 2026 302.50 [ICRA]AA+ (Stable)
INE414G07IH7 NCD programme Jul 27, 2023 8.40 Jul 27, 2028 768.00 [ICRA]AA+ (Stable)
INE414G07II5 NCD programme Jul 27, 2023 8.40 Aug 28, 2028 110.00 [ICRA]AA+ (Stable)
INE414G07IQ8 NCD programme Dec 07, 2023 8.85 Dec 07, 2026 1,000.00 [ICRA]AA+ (Stable)
INE414G07IR6 NCD programme Dec 20, 2023 8.85 Dec 20, 2028 1,000.00 [ICRA]AA+ (Stable)
INE414G07IS4 NCD programme Dec 20, 2023 8.78 May 20, 2027 1,000.00 [ICRA]AA+ (Stable)
INE414G07JA0 NCD programme Jan 30, 2024 8.85 Jan 30, 2029 790.00 [ICRA]AA+ (Stable)
INE414G07JC6 NCD programme Mar 26, 2024 8.75 Mar 23, 2027 190.00 [ICRA]AA+ (Stable)
INE414G07JB8 NCD programme Mar 26, 2024 8.90 June 17, 2027 660.00 [ICRA]AA+ (Stable)
INE414G07JE2 NCD programme May 03, 2024 9.03 May 03, 2029 420.00 [ICRA]AA+ (Stable)
Yet to be placed NCD programme - - - 3,099.50 [ICRA]AA+ (Stable)
Yet to be placed NCD programme - - - 6,500.00 [ICRA]AA+ (Stable)
Total – NCD programme 20,915.00
INE414G08330 Subordinated debt Jan 30, 2017 Zero Coupon Jan 30, 2025 31.78 [ICRA]AA+ (Stable)
INE414G08348 Subordinated debt Apr 24, 2017 Zero Coupon Apr 24, 2025 18.72 [ICRA]AA+ (Stable)
Yet to be placed Subordinated debt - - - 200.00 [ICRA]AA+ (Stable)
Total – Subordinated debt 250.50
INE414G14SX9 Commercial paper Jun 05, 2023 8.25 May 30, 2024 500.00 [ICRA]A1+
INE414G14SY7 Commercial paper Jun 05, 2023 8.25 Jun 04, 2024 500.00 [ICRA]A1+
INE414G14SZ4 Commercial paper Jul 17, 2023 8.25 Jul 16, 2024 450.00 [ICRA]A1+

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 Date of Amount
Coupon Rate Current Rating and
ISIN Instrument Name Issuance / Maturity Date Rated
(%) Outlook
Sanction (Rs. crore)
INE414G14TA5 Commercial paper Jul 17, 2023 8.25 Jul 12, 2024 150.00 [ICRA]A1+
INE414G14TB3 Commercial paper Jul 19, 2023 8.25 Jul 18, 2024 150.00 [ICRA]A1+
INE414G14TC1 Commercial paper Mar 01, 2024 8.50 Feb 25, 2025 250.00 [ICRA]A1+
INE414G14TE7 Commercial paper Mar 12, 2024 8.50 Mar 10, 2025 250.00 [ICRA]A1+
INE414G14TD9 Commercial paper Mar 12, 2024 8.50 Mar 10, 2025 250.00 [ICRA]A1+
INE414G14TF4 Commercial paper Mar 18, 2024 8.45 Mar 13, 2025 250.00 [ICRA]A1+
INE414G14TG2 Commercial paper Mar 19, 2024 8.45 Mar 18, 2025 250.00 [ICRA]A1+
INE414G14TH0 Commercial paper Apr 19, 2024 8.02 Jan 28, 2025 300.00 [ICRA]A1+
INE414G14TJ6 Commercial paper Apr 25, 2024 8.05 Dec 23, 2024 450.00 [ICRA]A1+
INE414G14TI8 Commercial paper Apr 25, 2024 8.05 Nov 25, 2024 250.00 [ICRA]A1+
Unallocated Commercial paper - - - 3,000.00 [ICRA]A1+
Total – Commercial paper 7,000.00
Jul 2020 to Jul 2024 to
NA Term loans - 28,004.57## [ICRA]AA+ (Stable)
May 2024 May 2028
NA Long-term bank facilities - - - 12,044.86## [ICRA]AA+ (Stable)
NA Bank guarantee - - - 15.50## [ICRA]AA+ (Stable)
NA Short-term bank facilities - - - 20,075.79## [ICRA]A1+
Total – Bank facilities - - - 44,515.00
INE414G07DJ4 NCD programme (public) Jun 14, 2019 9.75 Jun 14, 2024 105.81
INE414G07DM8 NCD programme (public) Jun 14, 2019 10 Jun 14, 2024 179.47
[ICRA]AA+ (Stable);
INE414G07DP1 NCD programme (public) Jun 14, 2019 Zero Coupon Jun 14, 2024 20.82
withdrawn
INE414G07FQ4 NCD programme (public) Apr 20, 2021 7.10 & 6.85 Jun 20, 2024 10.5
INE414G07FT8 NCD programme (public) Apr 20, 2021 7.35 & 7.10 Jun 20, 2024 596.54
INE414G07FW2 NCD programme (public) Apr 20, 2021 Zero Coupon Jun 20, 2024 15.28
Source: Company; ## Includes an interchangeable limit of Rs. 5,607.00 crore between long term and short term limits, and an unallocated limit of Rs.4,637.36
crore

Please click here to view details of lender-wise facilities rated by ICRA

Annexure II: List of entities considered for consolidated analysis as on March 31, 2024
Consolidation
Company Name MFL Ownership
Approach
Muthoot Finance Limited Parent Full consolidation
Muthoot Homefin (India) Limited 100% Full consolidation
Muthoot Insurance Brokers Private Limited 100% Full consolidation
Muthoot Money Limited 100% Full consolidation
Muthoot Trustee Private Limited 100% Full consolidation
Muthoot Asset Management Private Limited 100% Full consolidation
Belstar Microfinance Limited 63.86% Full consolidation
Asia Asset Finance PLC 72.92% Full consolidation
Source: MFL

Corrigendum

The rating rationale document dated July 01, 2024, has been corrected with the revision as detailed below:

1) Changes made in Page-6 (under Rating history for past three years).

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