Muthoot Finance injects ₹500 Crore in subsidiary

29 Aug 2025 , 11:11 AM

Muthoot Finance Limited announced that it has invested additional equity into its wholly-owned subsidiary, Muthoot Money Limited.

As per the company, it has invested a total amount of ₹499.99 Crore. The company has subscribed to 3,25,139 equity shares. 

The allotment was completed by the board of directors of Muthoot Money on August 28.

With this equity infusion, the subsidiary’s capital base and improvement of its capital adequacy ratio. 

The company said that it will use these funds for expansion of its business, general corporate purposes, and to repay its existing loans.

Muthoot Money operates as NBFC and is still a wholly-owned subsidiary of Muthoot Finance. Since Muthoot Finance is already a 100% stakeholder in the company, this additional equity infusion does not make any changes in the shareholding pattern. The company said that the transaction was through cash consideration, and the process has been completed.

For the quarter ended June 2025, the business registered a 89.60% year-on-year growth in its net profit at ₹2,046 Crore. In the same quarter of previous year, the business recorded a net profit of ₹1,079 Crore. The business said that its Net Interest Income (NII) jumped as much as 50.60% to ₹3,473 Crore. In the same quarter, the business posted net interest income of ₹2,305 Crore. Net Interest Margin for the quarter improved to 12.15% against 11.51% in the previous comparable quarter.

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