Muthoot Microfin Limited, one of India’s leading microfinance institutions, has officially filed its provisional Asset Liability Management (ALM) statement for the month ending September 30, 2025. The filing was made with both the BSE Limited and the National Stock Exchange of India Limited (NSE) under the guidelines of the SEBI circular SEBI/HO/DDHS/PoD1/P/CIR/2024/54 dated May 22, 2024.

This disclosure is a mandatory part of regulatory compliance for Non-Banking Financial Companies (NBFCs) and other financial institutions to ensure greater transparency, liquidity monitoring, and financial stability in the system. By submitting this ALM statement, Muthoot Microfin has once again shown its commitment towards adhering to the Securities and Exchange Board of India’s disclosure requirements.

Key Elements of the Filing

The provisional ALM statement captures outflows across various maturity buckets ranging from 0–7 days, 8–14 days, 15–30/31 days, and beyond. The filing contains detailed classifications under different financial heads such as:

1. Capital Outflows:

   • Equity Capital stood at ₹16,759.74 crore, which formed a part of the total capital segment.

   • No perpetual or non-redeemable preference shares were reported in the disclosure.

2. Reserves & Surplus:

   • A significant component of the balance sheet with ₹2,44,281.47 crore under reserves and surplus.

   • This includes Share Premium Account (₹1,60,445.40 crore), Reserves under Section 45-IC of the RBI Act (₹20,842.90 crore), and the Balance of Profit and Loss account (₹49,710.51 crore).

3. Borrowings:

   • Borrowings represented the largest share of outflows, amounting to ₹8,40,998.15 crore across different maturity brackets.

   • Bank borrowings alone constituted ₹6,77,235.22 crore, followed by borrowings from other entities and non-convertible debentures (NCDs) worth ₹44,165.00 crore.

   • Commercial papers (CPs) worth ₹12,293.52 crore were also reflected in the statement.

4. Current Liabilities & Provisions:

   • Current liabilities, including sundry creditors, expenses payable, and provisions for NPAs, added up to ₹59,262.91 crore.

   • A notable allocation was made towards provisions for non-performing assets (NPAs) amounting to ₹45,420.45 crore, reflecting the company’s cautious approach in risk management.

Regulatory Importance of ALM Disclosures

Asset Liability Management statements serve as a crucial risk management tool for financial institutions. They provide regulators, investors, and stakeholders with an overview of how companies are managing their liquidity mismatches, debt obligations, and capital reserves.

For NBFCs like Muthoot Microfin, these filings are essential to highlight their financial health and capacity to manage future obligations. The Reserve Bank of India (RBI) and SEBI emphasize these disclosures as a safeguard against potential systemic risks in the financial sector.

Commitment to Transparency

By regularly filing such statements, Muthoot Microfin demonstrates its dedication to regulatory compliance, investor confidence, and financial transparency. This aligns with the growing emphasis on corporate governance and accountability within India’s financial ecosystem.

Outlook

The disclosure for September 2025 reflects Muthoot Microfin’s robust capital base, strong reserves, and significant borrowings portfolio. With substantial provisions made against NPAs, the company continues to show prudence in risk management.

Going forward, these periodic disclosures will provide a transparent view of the company’s liquidity management strategies and financial preparedness. This will be closely tracked by analysts, investors, and regulators as part of the overall health of India’s microfinance and NBFC sector.

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