The revision in outlook follows a similar rating action on Muthoot Fincorp,
the parent and flagship company of the Muthoot Pappachan group, the rating company said, even as the microfinance lender’s asset quality remained under stress.
“However, overall asset quality (in terms of collections) has started showing some stability, since the fourth quarter of fiscal 2025. Collection efficiency under the non-overdue bucket has remained at over 99% during fiscal 2026. Further, the company has maintained adequate provisions for its stressed accounts, as reflected in the provision cover of 69% as on June 30, 2025,” Crisil said.The lender’s gross non-performing assets ratio stood flat at 4.8% as on June 30, 2025 from March level. The ratio was at 2.3% as on March 31, 2024. The company’s assets under management came down to Rs 12,253 crore at the end of June from Rs 12,357 crore three months back.
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