Try GOLD - Free
Rate cut to trigger growth: Muthoot
The New Indian Express Bengaluru
|January 06, 2025
KOCHI-BASED Muthoot Microfin is hopeful of better days ahead, even as the industry faces headwinds. The second largest micro lender expects the third interest rate reduction earlier last month to attract more customers and also improve collections.
The publicly listed company, with a loan book of ₹12,500 crore as of September 2024, lowered its lending rates for the third time this fiscal in December, by 25 bps to 23.05% for group loans and by 125 bps to 22.70% for third-party product loans.
This has crimped its margins to 13.24%. Earlier in January 2024, it had slashed the interest rate by 55 bps and then in July by 35 bps.
Sadaf Sayeed, chief executive of Muthoot Microfin, said that this steep rate reduction will crimp its margins but chose to pass on the benefits of cheaper funds to borrowers because with increased market borrowings our cost of funds has come down to 10.3% now.
This story is from the January 06, 2025 edition of The New Indian Express Bengaluru.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM The New Indian Express Bengaluru
The New Indian Express Bengaluru
CAT starts process to fill vacancies, 82 deputations to be made for three yrs
THE Principal Bench of the Central Administrative Tribunal (CAT) has initiated the process to fill vacant and anticipated vacancies across its benches in various states.
1 min
June 22, 2026
The New Indian Express Bengaluru
Ana De Armas, Kate Hudson to headline erotic thriller
ANA De Armas and Kate Hudson are all set to team up for an upcoming erotic thriller.
1 min
June 22, 2026
The New Indian Express Bengaluru
Market gears up for NSE, Jio IPOs
DOMESTIC capital market is gearing up for two of its largest initial public offerings (IPOs) as Jio Platforms and National Stock Exchange (NSE) have filed draft red herring prospectuses (DRHP) with market regulator SEBI this week to raise a combined roughly $7 billion.
1 mins
June 22, 2026
The New Indian Express Bengaluru
ODISHA TEXTBOOK FIASCO WARRANTS STERN ACTION
staggering 1,600-odd mistakes in textbooks printed and circulated among schools by the Odisha government are not merely proofing blunders.
1 mins
June 22, 2026
The New Indian Express Bengaluru
27 patients with normal heart function implanted with pacemakers in J&K
A cardiologist in a government hospital in South Kashmir has been found involved in serious irregularities in cardiac procedures, with a clinical audit revealing that 27 of 55 patients who received pacemakers had normal heart function and showed no medical indication for Left Bundle Branch Area Pacing (LBBAP).
1 min
June 22, 2026
The New Indian Express Bengaluru
C'garh cops support education of slum students
SHIFTING from traditional law enforcement to proactive community building, the initiative ‘‘Pahal’’ by the Rajnandgaon Police in Chhattisgarh is gaining recognition for its aim at long-term social transformation, education and youth empowerment.
1 mins
June 22, 2026
The New Indian Express Bengaluru
School headmaster develops 22-string modified guitar for classical music need
THE warm and mellow resonance produced by gourd-based instruments is integral to Indian classical music, said well-known Tripura instrumentalist Pankaj Kumar Das.
1 min
June 22, 2026
The New Indian Express Bengaluru
THE DISCIPLINE OF DECORUM
LOSING our temper in public and having heated altercations seem to have become the Indian norm, as incidents keep showing in the news.
4 mins
June 22, 2026
The New Indian Express Bengaluru
Will replicate Bengal type of election win in Punjab: Nabin
BJP national president Nitin Nabin on Sunday expressed confidence that his party will form the next government in Punjab and replicate its electoral success in other states, including West Bengal.
1 mins
June 22, 2026
The New Indian Express Bengaluru
Men hooked to liquor, women to smoking: Survey
LIQUOR consumption among men, including in Bihar, which has imposed prohibition on it, has gone up, while more and more women in India are taking up tobacco, according to the NFHS-6 (2023-24) data.
1 mins
June 22, 2026
Listen
Translate
Change font size