Muthoot Microfin Sees Dramatic Profit Plunge Amidst Rising Bad Loans

Muthoot Microfin Ltd has reported a significant downturn in its financial performance, with net profit plummeting by 95% to Rs 6 crore for the quarter ending in June 2025, primarily attributed to an increase in bad loans.

This is a stark contrast to the Rs 113 crore profit seen in the same quarter a year earlier. The company's total income witnessed a decline to Rs 559 crore from Rs 664 crore, while total expenses rose to Rs 553 crore compared to Rs 517 crore from the previous year.

The gross non-performing assets saw more than a twofold increase, reaching 4.85% from last year's 2.10%, indicating a significant rise in financial distress. Furthermore, the net NPA jumped to 1.58% compared to 0.71% in the prior fiscal's first quarter.

(With inputs from agencies.)