Muthoot Microfin Q3 profit jumps 16x as facilities and costs fall

Muthoot Microfin’s net profit in the third quarter rose more than 16 times to Rs 62.4 crore compared to Rs 3.8 crore in the same period last year, helped by a decline in provisions to cover bad loans.Credit costs for the quarter were 3.3%, well below the 4-6% guidance for the fiscal year. Provisions in absolute terms stood at Rs 106 crore, compared to Rs 164 crore in the year-ago quarter, in line with a decline in gross non-performing assets ratio to 4.4% at end-December, compared to 4.6% three months earlier.

However, operating profit before provisions was lower at Rs 175 crore, compared to Rs 252 crore.

The lender’s net interest margin for the quarter was 12%, up 11 basis points from the previous quarter. Gross loan book grew 5.4% year-on-year to Rs 13,079 crore.

“The microfinance sector has emerged from a challenging phase, with the industry gradually returning to a sustainable growth path,” said chairman Thomas Muthoot.

GIC Housing Finance reported a net profit of Rs 44 crore for the third quarter of the fiscal, reflecting a decline of 12% from the Rs 50 crore of the same period last year. The lender’s total expenses were higher at Rs 218 crore against Rs 214 crore, while total revenues were higher at Rs 273 crore against Rs 270 crore. The gross non-performing asset ratio increased to 4.24% at the end of December 2025, compared to 3.47% a year earlier. The lender’s net profit margin fell to 16% from 18.4% a year ago.