Muthoot Microfin raises over ₹1300 Cr via securitisation
New Delhi, 14th January, 2019: Muthoot Microfin Limited (MML), the microfinance arm of Muthoot Pappachan Group has executed securitisation deals amounting to ₹ 1306.44 crore during 9 month period of current FY 2018-19. In Q3 itself MML has executed Rs. 561.71 crore of direct assignment transactions with multiple financial institutions. So far, for FY 18-19 a leading company in Microfinance in India, has executed 11 direct assignment transactions with various Public sector Banks and Pvt sector banks.
DA transactions – Figures in Rs crore
All the transactions were executed through direct assignment route. Out of the total securitisation of microfinance portfolio in FY 2018-19, ₹ 846.05 crore was signed up with public sector banks and rest of the amount with private sector banks.
Mr Thomas Muthoot, MD, Muthoot Microfin Ltd said, “Securitisation deals help the company to diversify its funding mix, free up capital for growth and manage cost of funds efficiently. Muthoot Microfin follows very efficient treasury practices and maintains positive ALM. Securitisation deals further help MML maintain adequate liquidity and enough sanction of funds for smooth operations.”
Mr Sadaf Sayeed, CEO of Muthoot Microfin Ltd said “by securitising microfinance portfolio MML helps banks meet their PSL requirements, at the same time it helps MML raise funds for expansion and leverage its capital efficiently to help maximise returns for its shareholders. In the past direct assignment has remained a preferred route for us for portfolio sale”
Muthoot Microfin Limited is a leading microfinance institution focussed on providing micro loans to women entrepreneurs predominantly in rural regions of India. MML has operations in 16 states and it caters to financial requirement of more than 1.3 million rural households . MML has received its DRHP approval in October 2018 and is likely to come up with its public issue in the near future.