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Muthoot Microfin was incorporated as ‘Panchratna Stock and Investment Consultancy Services Private Limited’ on April 6, 1992 at Mumbai, Maharashtra, India as a private limited company under the Companies Act, 1956. Thereafter, the company was converted into a public limited company pursuant to a special resolution passed by its Shareholders on April 30, 1994 and consequently, the name of the Company was changed to ‘Panchratna Stock and Investment Consultancy Services Limited’. A fresh certificate of change of name, consequent upon conversion to a public limited company was issued by the RoC on June 9, 1994. Thereafter, the name of the Company was changed to ‘Panchratna Securities Limited’, in order to align with the object clause and activity being carried on by the Company, pursuant to a resolution passed by the Shareholders on June 11, 1994. A fresh certificate of incorporation, consequent to the change of name was granted to the Company by the RoC on June 22, 1994. The RBI granted a certificate of registration dated March 18, 1998 to the Company, under its erstwhile name ‘Panchratna Securities Limited’ for registration as an NBFC under Section 45-IA of the Reserve Bank of India Act, 1934.
Subsequently, the name of the Company was changed to ‘Muthoot Microfin Limited’, in order to reflect the group’s identity of the shareholders i.e., the Muthoot Pappachan Group and the operations of the Company, pursuant to a resolution passed by the Shareholders on October 29, 2012. A fresh certificate of incorporation, consequent to the change of name was granted to the Company by the RoC on November 6, 2012. Pursuant to a change in the objects clause of the Company, which was approved by way of special resolution dated January 21, 2013, the Company was granted a certificate of registration of the special resolution confirming alteration of object clause dated February 12, 2013. Subsequently, the RBI granted a revised certificate of registration dated March 18, 1998, reflecting the change of the Company’s name to Muthoot Microfin Limited, with effect from March 25, 2015. The RBI has granted NBFC-MFI status to the Company with effect from March 25, 2015, pursuant to an endorsement on its certificate of registration dated March 18, 1998.
The company is a microfinance institution providing micro-loans to women customers (primarily for income generation purposes) with a focus on rural regions of India. It is the fifth largest NBFC-MFI in India in terms of gross loan portfolio as of March 31, 2023. It also the third largest amongst NBFC-MFIs in South India in terms of gross loan portfolio, the largest in Kerala in terms of MFI market share, and a key player in Tamil Nadu with an almost 16% market share, as of March 31, 2023. The company has built its branch network with an emphasis on under-served rural markets with growth potential, in order to ensure ease of access to customers. Its branches are connected to its IT networks and are primarily located in commercial spaces which are easily accessible by its customers.
The company is a part of the Muthoot Pappachan Group, a business conglomerate with presence across financial services, automotive, hospitality, real estate, information technology infrastructure, precious metals and alternate energy sectors. The Muthoot Pappachan Group has a history of many years in the financial services business. It is the second largest company under the Muthoot Pappachan Group, in terms of AUM for the Financial Year 2023. MFL, the flagship company of the Muthoot Pappachan Group, holds 59.29% of the pre-Offer Equity Share capital in the company, on a fully diluted basis.The company’s relationship with the Muthoot Pappachan Group provides it with brand recall and significant marketing and operational benefits. Further, there are significant synergies between the financial services business of the group and its micro-finance business.
The company’s wide range of lending products is aimed at catering to the life-cycle needs of rural households. It primarily provides loans for income generating purposes to women customers living in rural areas. Its loan products comprise (i) group loans for livelihood solutions such as income generating loans, Pragathi loans (which are interim loans made to existing customers for working capital and income generating activities), individual loans and Suvidha loans (which are digital loans accessible through the Mahila Mitra application and made to existing customers to enable quick access to funds); (ii) life betterment solutions including mobile phones loans, solar lighting product loans and household appliances product loans; (iii) health and hygiene loans such as sanitation improvement loans; and (iv) secured loans in the form of gold loans and its Muthoot Small & Growing Business (MSGB) loans.
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The company is primarily engaged in providing financial assistance through micro loans to women engaged in small income generating activities.
Financial products of the company
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