Muthoot Microfin expects to beat 20% loan growth target as funding costs fall

Muthoot Microfin expects to beat its 20% loan growth target, driven by lower borrowing costs and strong demand for gold and individual loans.

The company's borrowing costs have fallen to around 9.95%, down from 10.1-10.15%, after raising ₹250 crore through non-convertible debentures.

Asset quality has improved, with gross non-performing assets falling to 3.7%, and the company aims to close below 3% by the end of the financial year.

Muthoot Microfin expects profit to rise more than 25% from the previous quarter, with net interest margins expected to remain around 12.5%.