Rating Rationale
March 03, 2022 | Mumbai

Muthoot Finance Limited

'CRISIL AA+/Stable' assigned to Non Convertible Debentures

 

Rating Action

Rs.3000 Crore Non Convertible Debentures

CRISIL AA+/Stable (Assigned)

Rs.1000 Crore Non Convertible Debentures

CRISIL AA+/Stable (Reaffirmed)

Rs.1000 Crore Non Convertible Debentures

CRISIL AA+/Stable (Reaffirmed)

Rs.350 Crore Long Term Principal Protected Market Linked Debentures

CRISIL PP-MLD AA+r/ Stable (Reaffirmed)

Rs.200 Crore Long Term Principal Protected Market Linked Debentures

CRISIL PP-MLD AA+r/ Stable (Reaffirmed)

Rs.200 Crore Long Term Principal Protected Market Linked Debentures

CRISIL PP-MLD AA+r/ Stable (Reaffirmed)

Rs.100 Crore Long Term Principal Protected Market Linked Debentures

CRISIL PP-MLD AA+r/ Stable (Reaffirmed)

Rs.150 Crore Long Term Principal Protected Market Linked Debentures

CRISIL PP-MLD AA+r/ Stable (Reaffirmed)

Rs.2000 Crore NonConvertible Debentures

CRISIL AA+/Stable (Reaffirmed)

Subordinate Debt Aggregating Rs.200.28 Crore

CRISIL AA+/Stable (Reaffirmed)

Non Convertible Debentures Aggregating Rs.2000 Crore

CRISIL AA+/Stable (Reaffirmed)

Non Convertible Debentures Aggregating Rs.1359.1 Crore (Reduced from Rs.4000 Crore)

CRISIL AA+/Stable (Reaffirmed)

Rs.4000 Crore Non-Convertible Debentures

CRISIL AA+/Stable (Reaffirmed)

Rs.304.2 crore Non-Convertible Debentures

CRISIL AA+/Stable (Withdrawn)

Rs.1500 Crore Non-Convertible Debentures

CRISIL AA+/Stable (Reaffirmed)

Rs.251.80 crore Non-Convertible Debentures

CRISIL AA+/Stable (Reaffirmed)

Rs.93.60 crore Non-Convertible Debentures

CRISIL AA+/Stable (Withdrawn)

Rs.2.80 Crore Non-Convertible Debentures

CRISIL AA+/Stable (Withdrawn)

Rs.250 crore Non-Convertible Debentures

CRISIL AA+/Stable (Reaffirmed)

Rs.10 Crore Subordinated Debt

CRISIL AA+/Stable (Reaffirmed)

Rs.18.72 Crore Subordinated Debt

CRISIL AA+/Stable (Reaffirmed)

Rs.31.78 Crore Subordinated Debt

CRISIL AA+/Stable (Reaffirmed)

Rs.23.0392 Crore Subordinated Debt

CRISIL AA+/Stable (Reaffirmed)

Rs.5000 Crore Commercial Paper

CRISIL A1+ (Reaffirmed)

1 crore = 10 million   

Refer to annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has assigned its ‘CRISIL AA+/Stable’ rating to Rs 3000 crore Non-Convertible Debentures of Muthoot Finance Limited (Muthoot Finance). The ratings on existing debt instruments have been reaffirmed at 'CRISIL AA+/CRISIL PP-MLD AA+r/Stable/CRISIL A1+'.

 

CRISIL Ratings has withdrawn its rating on non-convertible debentures of Rs 604.1 crore (see the annexure, 'Details of rating withdrawn', for details) on receipt of independent confirmation that these instruments are fully redeemed, in line with its withdrawal policy.

 

The ratings are driven by Muthoot Finance’s demonstrated ability of profitably scaling up its core gold loan business while maintaining its strong financial risk profile. It also factors in the company’s strong market position within the gold loan segment of India, bolstered by promoter experience. These strengths are partially offset by geographical concentration in operations and low market share in the non-gold segments and, asset quality challenges relating to these non-gold segments.

 

Between June 2020 and March 2021, the gold loan assets under management (AUM) has grown by 28.2% (non-annualised) despite increasing competition from banks and, having a regulatory Loan to Value (LTV) disadvantage during this period. The gold loan AUM stood at Rs 51,927 crore as on March 31, 2021, registering a 3 year CAGR of 21.6%. However, this growth momentum was disrupted by the second pandemic wave and following suppression of demand. Resultantly, nine monthly growth for fiscal 2022 in gold loan AUM declined to 5.9% (annualized).

 

With revival in demand and uptick in gold prices, CRISIL Ratings expects the company to grow at 15-17% over the medium term and, retain its leadership position among gold loan financiers. However, in the long term, ability to maintain this growth momentum alongside increasing competition from banks, will be a monitorable.

 

Asset quality for gold loans, as better measured by credit costs, has also been sound, except for the fourth quarter of fiscal 2018 when non-performing asset (NPA) levels increased after change in NPA recognition norms. Standalone gross stage III assets, having remained below 3.0% for the last 7 fiscals (except for fiscal 2018), have increased to 3.8% as of December 31, 2021 – on account of lagged improvement in repayment capacity of certain borrowers. However, ultimate credit costs for 9M fiscal 2022 remain low at 0.4%, supported by the highly liquid nature of the collateral. In fiscal 2021, cumulative auctions done by the company were Rs 171 crore however, in 9M 2022 – the cumulative auctions done have increased to Rs 3111 crore. Nonetheless, the overall auction proceeds have been higher than the principal component of the collateral against which the loan was extended.

 

The non-gold portfolios have faced asset quality challenges in the aftermath of the pandemic. The gross NPAs (GNPAs) have increased significantly over the last 6-8 quarters and this has had an impact on the respective earnings profile of subsidiaries. The management remains cautious and has strategically decided to curtail disbursements resulting in de-growth in the housing loan and vehicle finance business. Over 9M 2022, the housing loan portfolio (under Muthoot Homefin India Limited [Muthoot Homefin]) has registered a negative growth of 9.8% (annualised) whereas the vehicle loan portfolio (under Muthoot Money Limited [Muthoot Money]) has shrunk by 47.4% (annualised). The microfinance portfolio (under Belstar Microfinance Limited [Belstar]) grew at 21.7% (annualised) over the same period. Nevertheless, the non-gold business is relatively small and contributes to only 10% of consolidated AUM.

 

CRISIL Ratings believes that the gold loan AUM will continue to account for 85% of the consolidated AUM and over 90% of consolidated profit over the medium term. Consequently, the consolidated credit profile has the ability to absorb asset quality and earnings risks in the microfinance, vehicle or housing finance businesses in the near term.

 

The company’s earnings profile has remained healthy over the years, and has improved further in the last 2-3 fiscals. Muthoot Finance reported a consolidated return on managed assets (RoMA) of 5.7% (annualized) for nine months ended December 31, 2021, which is the best among lending entities such as banks and NBFCs. This superior earnings profile is supported by high interest margins and, low operating and credit costs. The company has maintained strong capital position while ramping up operations over the years. As on December 31, 2021, its reported networth was Rs 17,773 crore (consolidated), tier I capital adequacy ratio was adequate at 29.0% (standalone) and gearing low at 2.9 times (consolidated). Over the past six fiscals, gearing (consolidated and standalone) remained below 4 times whereas standalone tier I capital adequacy ratio remained above 20%. CRISIL Ratings believes that strong internal cash generation from the gold finance business will strengthen Muthoot Finance’s standalone capital position and, allow the company to prudently capitalise its subsidiaries and provide timely need-based liquidity support.

 

In terms of standalone funding, while a larger proportion of borrowing has been sourced as funding lines from banks and financial institutions (52%), the company’s resource profile remained diversified across avenues such as non-convertible debentures and subordinated debt (27%), commercial paper (2%), external commercial borrowing (16%) and other sources (3%) as on December 31, 2021.

Analytical Approach

CRISIL Ratings has combined the business and financial risk profiles of Muthoot Finance and its subsidiaries, including Muthoot Homefin, Belstar and Muthoot Money.

 

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description

Strengths:

  • Established track record and brand name in gold financing industry

Muthoot Finance has sustained its leadership position in the gold financing segment, supported by the long and established track record of 80 years of its promoter family. The company has a large operational base of over 4,600 branches across India, which has supported its leadership position among NBFCs carrying out gold loan business over the years. Despite moderate volume growth and increased competition from banks due to LTV relaxation benefit extended to them until March 31, 2021, the company’s gold loan AUM grew by  27.4% over fiscal 2021 to reach Rs 51,927 crore on March 31, 2021. This was a factor of appreciation in gold prices, new disbursals made at marginally higher than average LTV and, expansion of active customer base through reactivation of old inactive customers and increase in the number of new customers. Following the second pandemic wave and the liquidity constraints within certain borrower segments thereafter, nine monthly growth in gold loan portfolio was arrested at 5.9% (annualized).

 

Historically, the company’s operating efficiency – indicated by average gold loan AUM per branch – has been higher than that of peers. As at the end of December 31, 2021, the average AUM per branch stood at Rs 11.7 crore, almost double of that for fiscal 2013.

 

Muthoot Finance’s extensive branch network and client base, which is relatively more diverse in terms of geographies and is gradually improving further, should support the further strengthening of its competitive position over the medium term. While the company had started to diversify into non-gold segments, its primary focus would remain on gold loans over the medium term in light of the challenges being faced by other asset classes after the pandemic.

 

  • Strong capitalisation

Muthoot Finance’s capital position remains strong in relation to its scale and nature of operations, supported by its demonstrated ability to raise capital frequently and large accretions to networth. As on December 31, 2021, the company reported a consolidated networth of Rs 17,773 crore and a comfortable gearing of 2.9 times. The gearing has remained below 4 times for several years now. Tier I and overall capital adequacy ratios on a standalone basis have also remained comfortable over 20% over the last few years driven by stable growth in business, and stood at 29.0% and 29.9% respectively on December 31, 2021. Strong internal cash generation from the gold loan business will allow Muthoot Finance to prudently capitalise its subsidiaries and provide need-based liquidity support, apart from strengthening its standalone capital position. Even after factoring in leverage in the key subsidiaries, CRISIL Ratings believes the consolidated gearing will remain below 5 times and capital adequacy ratio above 20% over the medium term.

 

  • Profitability among the best in the industry, expected to remain healthy

The company’s earnings profile has been healthy in the past and, has improved further over the last few fiscals to outperform NBFCs and banks. For fiscal 2021 and 9M 2022, the consolidated RoMA stood at 6.1% and 5.7% (annualized), respectively – which is higher than almost all lending entities operating in India. This superior profitability can be attributed to the company’s ability to generate high interest margins while keeping operating expenses and provisioning requirements low. Over the past 2-3 fiscals, increased focus on collection of interest on a regular basis and revision in interest rates on different schemes helped sustain margins. Asset quality as measured by annualised credit costs has also been under control, except a one-time deviation in the fourth quarter of fiscal 2018 when NPAs rose due to change in NPA recognition norms from account-wise to borrower-wise.

 

Stage III assets, which have remained below 3% on a steady state basis in the past, increased to 3.8% as on December 31, 2021 due to the overhang of pandemic imposed challenges. However, ultimate credit costs have remained within 1% on account of low asset-side risk (security of gold, which is liquid and is in the lender’s possession) in the gold finance business. Even in fiscal 2021 and 9M 2022, despite the expectation of a marginal uptick in credit losses of non-gold businesses due to Covid-19-related disruption, consolidated profitability is expected to remain healthy. As the group diversifies into other segments in the long run, asset quality and profitability of the non-gold businesses will remain monitorables.

 

Weaknesses:

  • Geographical concentration in operations and low market presence in non-gold businesses

Despite attempts for gradual diversification, Muthoot Finance’s operations have a high degree of geographical concentration - South India accounted for 50% of the company’s AUM and 60% of its branches as on December 31, 2021. Significant regional concentration renders the company to vulnerabilities of economic, social, and political disruptions in the region. An instance of this nature was witnessed last year in the form of strikes called by a group of employees associated with Centre of Indian Trade Unions (CITU) which resulted in momentary disruption of operations of a few branches in Kerala. However, as per the management, none of the existing branches in the state are facing any disruptions on account of this event.  As of December 31, 2021, the company had a small exposure of <3% to Kerala and as part of its branch rationalisation strategy, this exposure may get reduced further.

 

Muthoot Finance had started to diversify its product suite across housing finance, microfinance, vehicle finance and a few other segments. This expansion into non- gold segments and growth of these businesses led to an increase in their share in the consolidated AUM, to almost 13% by the end of fiscal 2020. However, none of these businesses command good market share. Furthermore, in the aftermath of the pandemic, the management took a conscious call to curtail disbursements over the next few quarters. Consequently, the housing loan and vehicle finance businesses saw a decline (annualised) of 9.8% and 47.4%, respectively over nine months ended December 31, 2021; while the microfinance portfolio registered a growth of 21.7% during the same period. As a result, the share of non-gold businesses has declined to 10% in the consolidated AUM of Muthoot Finance. Over the medium term, as the focus on these segments will remain low – high segmental concentration in AUM and revenue profile will remain a key monitorable.

 

  • Asset quality challenges associated with non-gold loan segments

Given the low track record and seasoning in the non-gold loan segments, the growth, asset quality and profitability in those segments are yet to stabilise. Within the housing finance segment, Muthoot Homefin operates in the affordable housing finance segment, catering to self-employed customers engaged in small business activities and thus, have a relatively weak credit risk profile because of the volatile nature of their income and employment in un-organised segments. Similarly, microfinance loans (under Belstar Microfinance), through which the company intends to cater to weaker sections of the society, are unsecured in nature and are rendered to borrowers with a weak credit risk profile. This segment also exhibits high subjectivity to local socio-political issues. The vehicle finance business (under Muthoot Money), which is relatively new, deals with lending against commercial vehicles and equipment – majority of which are used/pre-owned vehicles.

 

With respect to impact of covid-19, the non-gold businesses have faced asset quality challenges in its aftermath. While collections across most of these segments, after dropping drastically in Q1 2021, had started to revive in the second half of the fiscal, the second wave has prolonged the improvement. Consequently, the GNPAs have increased significantly. As on December 31, 2021, the GNPA for the microfinance business (Belstar) was 5.54%, for the vehicle loans (Muthoot Money) was 12.42% and, for housing loans (Muthoot Homefin) was 4.43%. In light of prevailing asset quality challenges, the standalone earnings profile of non-gold businesses is expected to remain weak over the next few quarters. From a longer term perspective, as the growth within these segments has remained limited as yet, the asset quality and profitability in these businesses will be a key monitorable.

Liquidity: Strong

The company’s standalone liquidity position remains strong with a liquidity balance of Rs 7,727 crore as on February 18, 2022 (excluding un-utilized portion of existing term loans, including un-utilized portion of Cash Credit and Working Capital Demand Loans). Liquidity cover for debt obligations arising over the following 2 months, without factoring in any roll over or incremental collections, was at 1.0 time. Over the last 4-5 quarters, Muthoot Finance has been maintaining about 8-10% of its balance sheet as liquidity balance. The company has also been able to roll over existing working capital lines and also raise incremental funds at competitive rates over the last few quarters. Over nine months through January 31, 2021, the company has raised over Rs.17,997 crore of funds from various avenues.

 

ESG Profile

CRISIL Ratings believes that Muthoot Finance’ Environment, Social, and Governance (ESG) profile supports its already strong credit risk profile.

 

The ESG profile for financial sector entities typically factors in governance as a key differentiator. The sector has reasonable social impact because of its substantial employee and customer base, and it can play a key role in promoting financial inclusion. While the sector does not have a direct adverse environmental impact, the lending decisions may have a bearing on environment.

 

Muthoot Finance has a continuous focus on strengthening various aspects of its ESG profile.

 

Muthoot Finance’s key ESG Highlights:

  • Muthoot Finance’s ESG approach focuses on community development, reduced carbon emissions, along with practices related to people, customers, lending, procurement, and governance. The company is operating three windmills in Tamil Nadu for past 15 years contributing towards the clean energy generation. And to contribute towards power saving, it aims to install LED lights all the branches; about 40% branches had LED lights at the end of previous fiscal.
  • ESG disclosures of the company are evolving and it is in the process of further strengthening the disclosures going forward.
  • The company, through its lending practices, is largely retail focused and has been enabling financing to new to credit customers, semi urban areas, and strives to provide sustainable livelihood related financing products for its customers.
  • The company has taken adequate measures for conservation of energy and usage of alternative source of energy, wherever required.
  • Majority of the board members are independent directors, and investor grievances are handled by a dedicated Stakeholder Relationship Committee.

 

There is growing importance of ESG among investors and lenders. Muthoot Finance’s commitment to ESG principles will play a key role in enhancing stakeholder confidence, given the sizable share of market borrowings in its overall debt and access to both domestic and foreign capital markets.

Outlook: Stable

CRISIL Ratings believes Muthoot Finance will sustain its strong capitalisation and healthy profitability. Asset quality in the gold business, which accounts for a majority of the AUM, will remain sound, supported by increased frequency of interest collections and the highly liquid nature of the underlying security (gold jewelry), which should keep credit losses low. For non-gold segments, maintenance of asset quality and profitability alongside growth remains a monitorable

Rating Sensitivity factors

Upward factors

  • Continued strong market position in the gold finance business with increasing diversity in AUM and geographical reach
  • Sustenance of profitability with RoMA above 5% on a steady state basis, while improving asset quality

 

Downward factors

  • Significant and sustained deterioration in asset quality of non-gold businesses affecting earnings
  • Moderation in capital position, with tier I capital adequacy ratio declining below 15%

About the Company

Muthoot Finance, an NBFC, was originally set up as a private limited company in 1997 and was reconstituted as a public limited company in November 2008. It provides finance against used household gold jewellery. The promoter family has been in this business for over seven decades. During the initial days, the business was carried out under Muthoot Bankers, a partnership firm. Muthoot Finance is the flagship company of the Muthoot group (promoter of Muthoot Finance), which is also in the hospitality, healthcare, media, education, information technology, foreign exchange, insurance distribution, and money transfer businesses.

Key Financial Indicators

As on/ for the period ended

 

Dec-21

Mar-21

Mar-20

Mar-19

Total managed assets

Rs crore

66831

63465

50459

38069

Total income

Rs crore

8420

10574

8723

6881

Profit after tax

Rs crore

2994

3722

3018

1972

Gross NPA

%

3.8

0.9

2.2

2.7

Gearing

Times

2.7

3.2

3.2

2.7

Return on managed assets (annualised)

%

6.1

6.5

6.8

5.7

 

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of instrument

Date of

Allotment

Coupon

rate (%)

Maturity

date

Issue Size

(Rs.In crs)

Complexity

Level

Ratings

INE414G07EW5

Principal protected

market linked debentures

9-Jul-20

NIFTY 50 INDEX LINKED

8-Jul-22

235

Highly

complex

CRISIL PP-MLD AA+ r/Stable

INE414G07ES3

Principal protected

market linked debentures

12-Jun-20

NIFTY 50 INDEX LINKED

10-Jun-22

135.5

Highly

complex

CRISIL PP-MLD AA+ r/Stable

INE414G07EY1

Principal protected

market linked debentures

24-Jul-20

NIFTY 50 INDEX LINKED

24-Aug-22

100

Highly

complex

CRISIL PP-MLD AA+ r/Stable

INE414G07FA8

Principal protected

market linked debentures

7-Sep-20

NIFTY 50 INDEX LINKED

7-Oct-22

200

Highly

complex

CRISIL PP-MLD AA+ r/Stable

NA

Principal protected

market linked debentures^

NA

NA

NA

329.5

Highly

complex

CRISIL PP-MLD AA+ r/Stable

NA

Secured Redeemable

Non-Convertible Debentures^

NA

NA

NA

3000

Simple

CRISIL AA+/Stable

NA

Secured Redeemable

Non-Convertible Debentures^

NA

NA

NA

1000

Simple

CRISIL AA+/Stable

NA

Secured Redeemable

Non-Convertible Debentures^

NA

NA

NA

718.5

Simple

CRISIL AA+/Stable

INE414G07FP6

Secured Redeemable

Non-Convertible Debentures

9-Mar-21

6.65%

27-Apr-23

175

Simple

CRISIL AA+/Stable

INE414G07FQ4

Secured Redeemable

Non-Convertible Debentures

20-Apr-21

6.85%

5-Jul-24

10.5

Simple

CRISIL AA+/Stable

INE414G07FR2

Secured Redeemable

Non-Convertible Debentures

20-Apr-21

7.35%

20-Apr-26

17.2

Simple

CRISIL AA+/Stable

INE414G07FS0

Secured Redeemable

Non-Convertible Debentures

20-Apr-21

6.60%

20-Jun-23

384.9

Simple

CRISIL AA+/Stable

INE414G07FT8

Secured Redeemable

Non-Convertible Debentures

20-Apr-21

7.10%

20-Jun-24

596.5

Simple

CRISIL AA+/Stable

INE414G07FU6

Secured Redeemable

Non-Convertible Debentures

20-Apr-21

7.60%

20-Apr-26

384.8

Simple

CRISIL AA+/Stable

INE414G07FV4

Secured Redeemable

Non-Convertible Debentures

20-Apr-21

8.00%

20-Apr-31

229.

Simple

CRISIL AA+/Stable

INE414G07FW2

Secured Redeemable

Non-Convertible Debentures

20-Apr-21

Zero Coupon

20-Jun-24

15.3

Simple

CRISIL AA+/Stable

INE414G07FX0

Secured Redeemable

Non-Convertible Debentures

20-Apr-21

Zero Coupon

20-Apr-26

61.8

Simple

CRISIL AA+/Stable

INE414G07FY8

Secured Redeemable

Non-Convertible Debentures

31-May-21

7.90%

30-May-31

215

Simple

CRISIL AA+/Stable

INE414G07FZ5

Secured Redeemable

Non-Convertible Debentures

26-Aug-21

5.35%

26-Aug-24

400

Simple

CRISIL AA+/Stable

INE414G07GA6

Secured Redeemable

Non-Convertible Debentures

17-Feb-22

6.87%

27-Feb-25

500

Simple

CRISIL AA+/Stable

INE414G07GB4

Secured Redeemable

Non-Convertible Debentures

24-Feb-22

6.17%

23-Feb-24

200

Simple

CRISIL AA+/Stable

INE414G07FJ9

Secured Redeemable

Non-Convertible Debentures

11-Jan-21

7.15 &

6.75

11-Mar-24

43

Simple

CRISIL AA+/Stable

INE414G07FK7

Secured Redeemable

Non-Convertible Debentures

11-Jan-21

7.50 &

7.10

11-Jan-26

43

Simple

CRISIL AA+/Stable

INE414G07FL5

Secured Redeemable

Non-Convertible Debentures

11-Jan-21

7.40 &

7.00

11-Mar-24

63

Simple

CRISIL AA+/Stable

INE414G07FM3

Secured Redeemable

Non-Convertible Debentures

11-Jan-21

7.75 &

7.35

11-Jan-26

55

Simple

CRISIL AA+/Stable

INE414G07FN1

Secured Redeemable

Non-Convertible Debentures

11-Jan-21

Zero Coupon

11-Mar-24

44

Simple

CRISIL AA+/Stable

INE414G07FO9

Secured Redeemable

Non-Convertible Debentures

11-Jan-21

Zero Coupon

11-Jan-26

45

Simple

CRISIL AA+/Stable

INE414G07FD2

Secured Redeemable

Non-Convertible Debentures

5-Nov-20

7.40 &

7.15

5-Jan-24

24

Simple

CRISIL AA+/Stable

INE414G07FE0

Secured Redeemable

Non-Convertible Debentures

5-Nov-20

7.75 &

7.50

5-Nov-25

37

Simple

CRISIL AA+/Stable

INE414G07FF7

Secured Redeemable

Non-Convertible Debentures

5-Nov-20

7.65 &

7.40

5-Jan-24

1774

Simple

CRISIL AA+/Stable

INE414G07FG5

Secured Redeemable

Non-Convertible Debentures

5-Nov-20

8.00 &

7.75

5-Nov-25

76

Simple

CRISIL AA+/Stable

INE414G07FH3

Secured Redeemable

Non-Convertible Debentures

5-Nov-20

Zero Coupon

5-Jan-24

60

Simple

CRISIL AA+/Stable

INE414G07FI1

Secured Redeemable

Non-Convertible Debentures

5-Nov-20

Zero Coupon

5-Nov-25

30

Simple

CRISIL AA+/Stable

INE414G07FC4

Secured Redeemable

Non-Convertible Debentures

16-Oct-20

7.5

16-Oct-23

460

Simple

CRISIL AA+/Stable

INE414G07FB6

Secured Redeemable

Non-Convertible Debentures

30-Sep-20

7

30-Mar-22

50

Simple

CRISIL AA+/Stable

INE414G07EZ8

Secured Redeemable

Non-Convertible Debentures

25-Sep-20

7.15

25-Nov-22

450

Simple

CRISIL AA+/Stable

INE414G07EX3

Secured Redeemable

Non-Convertible Debentures

15-Jul-20

8.4

15-Jul-23

100

Simple

CRISIL AA+/Stable

INE414G07EV7

Secured Redeemable

Non-Convertible Debentures

7-Jul-20

8.3

8-Aug-22

650

Simple

CRISIL AA+/Stable

INE414G07EU9

Secured Redeemable

Non-Convertible Debentures

25-Jun-20

8.5

4-Jul-22

365

Simple

CRISIL AA+/Stable

INE414G07ET1

Secured Redeemable

Non-Convertible Debentures

18-Jun-20

9.5

18-Jun-25

125

Simple

CRISIL AA+/Stable

INE414G07ER5

Secured Redeemable

Non-Convertible Debentures

2-Jun-20

9.05

2-Jun-23

500

Simple

CRISIL AA+/Stable

INE414G07EQ7

Secured Redeemable

Non-Convertible Debentures

14-May-20

8.9

12-May-23

100

Simple

CRISIL AA+/Stable

INE414G07EP9

Secured Redeemable

Non-Convertible Debentures

24-Feb-20

9.5

11-Mar-22

175

Simple

CRISIL AA+/Stable

INE414G07EI4

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

9.5

27-Feb-23

54.7

Simple

CRISIL AA+/Stable

INE414G07EJ2

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

9.75

27-Dec-24

81.8

Simple

CRISIL AA+/Stable

INE414G07EL8

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

9.75

27-Feb-23

117.1

Simple

CRISIL AA+/Stable

INE414G07EM6

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

10.0

27-Dec-24

54.4

Simple

CRISIL AA+/Stable

INE414G07EE3

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

10

27-Feb-23

40.8

Simple

CRISIL AA+/Stable

INE414G07EF0

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

Zero Coupon

27-Dec-24

12.7

Simple

CRISIL AA+/Stable

INE414G07EG8

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

Zero Coupon

27-Jun-27

44.6

Simple

CRISIL AA+/Stable

INE414G07DU1

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

9.5

1-Jan-23

53.7

Simple

CRISIL AA+/Stable

INE414G07DV9

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

9.75

1-Nov-24

89.8

Simple

CRISIL AA+/Stable

INE414G07DX5

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

9.75

1-Jan-23

41

Simple

CRISIL AA+/Stable

INE414G07DY3

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

10.0

1-Nov-24

53.6

Simple

CRISIL AA+/Stable

INE414G07EA1

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

10

1-Jan-23

38

Simple

CRISIL AA+/Stable

INE414G07EB9

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

Zero Coupon

1-Nov-24

14

Simple

CRISIL AA+/Stable

INE414G07EC7

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

Zero Coupon

1-May-27

43.2

Simple

CRISIL AA+/Stable

INE414G07DI6

Secured Redeemable

Non-Convertible Debentures

14-Jun-19

9.5

14-Aug-22

87.2

Simple

CRISIL AA+/Stable

INE414G07DL0

Secured Redeemable

Non-Convertible Debentures

14-Jun-19

9.75

14-Aug-22

71.3

Simple

CRISIL AA+/Stable

INE414G07DO4

Secured Redeemable

Non-Convertible Debentures

14-Jun-19

Zero Coupon

14-Aug-22

157.3

Simple

CRISIL AA+/Stable

INE414G07DJ4

Secured Redeemable

Non-Convertible Debentures

14-Jun-19

9.75

14-Jun-24

105.8

Simple

CRISIL AA+/Stable

INE414G07DM8

Secured Redeemable

Non-Convertible Debentures

14-Jun-19

10

14-Jun-24

179.5

Simple

CRISIL AA+/Stable

INE414G07DP1

Secured Redeemable

Non-Convertible Debentures

14-Jun-19

Zero Coupon

14-Jun-24

20.8

Simple

CRISIL AA+/Stable

INE414G07DQ9

Secured Redeemable

Non-Convertible Debentures

14-Jun-19

Zero Coupon

14-Dec-26

32.2

Simple

CRISIL AA+/Stable

INE414G07CZ2

Secured Redeemable

Non-Convertible Debentures

20-Mar-19

Zero Coupon

20-May-22

151.7

Simple

CRISIL AA+/Stable

INE414G07DC9

Secured Redeemable

Non-Convertible Debentures

20-Mar-19

9.5

20-May-22

79.5

Simple

CRISIL AA+/Stable

INE414G07DF2

Secured Redeemable

Non-Convertible Debentures

20-Mar-19

9.75

20-May-22

73.7

Simple

CRISIL AA+/Stable

INE414G07DA3

Secured Redeemable

Non-Convertible Debentures

20-Mar-19

Zero Coupon

20-Mar-24

46.8

Simple

CRISIL AA+/Stable

INE414G07DD7

Secured Redeemable

Non-Convertible Debentures

20-Mar-19

9.75

20-Mar-24

110.6

Simple

CRISIL AA+/Stable

INE414G07DG0

Secured Redeemable

Non-Convertible Debentures

20-Mar-19

10

20-Mar-24

91.8

Simple

CRISIL AA+/Stable

INE414G07CK4

Secured Redeemable

Non-Convertible Debentures

19-Apr-18

8.75

19-Apr-23

56.5

Simple

CRISIL AA+/Stable

INE414G07CN8

Secured Redeemable

Non-Convertible Debentures

19-Apr-18

9

19-Apr-23

721.9

Simple

CRISIL AA+/Stable

INE414G07CR9

Secured Redeemable

Non-Convertible Debentures

19-Apr-18

Zero Coupon

19-Apr-23

205.6

Simple

CRISIL AA+/Stable

INE414G07CA5

Secured Redeemable

Non-Convertible Debentures

24-Apr-17

8.75

24-Apr-22

61.2

Simple

CRISIL AA+/Stable

INE414G07CD9

Secured Redeemable

Non-Convertible Debentures

24-Apr-17

9

24-Apr-22

190.6

Simple

CRISIL AA+/Stable

INE414G08306

Subordinated Debt

20-Jan-16

Zero Coupon

20-Apr-23

23.04

Complex

CRISIL AA+/Stable

INE414G08330

Subordinated Debt

30-Jan-17

Zero Coupon

30-Jan-25

31.78

Complex

CRISIL AA+/Stable

INE414G08348

Subordinated Debt

24-Apr-17

Zero Coupon

24-Apr-25

18.72

Complex

CRISIL AA+/Stable

INE414G09015

Subordinated Debt

26-Mar-13

12.35

26-Mar-23

10

Complex

CRISIL AA+/Stable

NA

Subordinated Debt^

NA

NA

NA

200.28

Complex

CRISIL AA+/Stable

NA

Commercial Paper

NA

NA

7-365 days

5000

Simple

CRISIL A1+

^Yet to be Issued

 

Annexure - Details of Rating Withdrawn

ISIN

Name of instrument

Date of

Allotment

Coupon

rate (%)

Maturity

date

Issue Size

(Rs.In crs)

Complexity

Level

INE414G07EH6

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

9.25

27-Dec-21

63.80

Simple

INE414G07EK0

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

9.5

27-Dec-21

285.70

Simple

INE414G07ED5

Secured Redeemable

Non-Convertible Debentures

27-Dec-19

9.75

27-Dec-21

34.50

Simple

INE414G07DT3

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

9.25

1-Nov-21

45.60

Simple

INE414G07DW7

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

9.5

1-Nov-21

54.80

Simple

INE414G07DZ0

Secured Redeemable

Non-Convertible Debentures

1-Nov-19

9.75

1-Nov-21

26.10

Simple

INE414G07BQ3

Secured Redeemable

Non-Convertible Debentures

30-Jan-17

9.00 & 8.75

30-Jan-22

11.10

Simple

INE414G07BT7

Secured Redeemable

Non-Convertible Debentures

30-Jan-17

9.25 & 9.00

30-Jan-22

82.50

Simple

 

Annexure – List of entities consolidated

Names of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

Muthoot Homefin (India) Ltd

Full

Subsidiary

Belstar Microfinance Private Limited

Full

Subsidiary

Muthoot Money Limited

Full

Subsidiary

 

Annexure - Rating History for last 3 Years
  Current 2022 (History) 2021  2020  2019  Start of 2019
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Commercial Paper ST 5000.0 CRISIL A1+   -- 03-08-21 CRISIL A1+ 24-07-20 CRISIL A1+ 18-01-19 CRISIL A1+ CRISIL A1+
      --   -- 23-02-21 CRISIL A1+ 16-07-20 CRISIL A1+   -- --
      --   -- 15-02-21 CRISIL A1+ 03-07-20 CRISIL A1+   -- --
      --   --   -- 26-06-20 CRISIL A1+   -- --
      --   --   -- 15-06-20 CRISIL A1+   -- --
      --   --   -- 05-06-20 CRISIL A1+   -- --
      --   --   -- 03-03-20 CRISIL A1+   -- --
      --   --   -- 02-03-20 CRISIL A1+   -- --
      --   --   -- 31-01-20 CRISIL A1+   -- --
Non Convertible Debentures LT 16360.9 CRISIL AA+/Stable   -- 03-08-21 CRISIL AA+/Stable 24-07-20 CRISIL AA/Positive 18-01-19 CRISIL AA/Stable CRISIL AA/Stable
      --   -- 23-02-21 CRISIL AA+/Stable 16-07-20 CRISIL AA/Positive   -- --
      --   -- 15-02-21 CRISIL AA+/Stable 03-07-20 CRISIL AA/Positive   -- --
      --   --   -- 26-06-20 CRISIL AA/Positive   -- --
      --   --   -- 15-06-20 CRISIL AA/Positive   -- --
      --   --   -- 05-06-20 CRISIL AA/Positive   -- --
      --   --   -- 03-03-20 CRISIL AA/Positive   -- --
      --   --   -- 02-03-20 CRISIL AA/Positive   -- --
      --   --   -- 31-01-20 CRISIL AA/Positive   -- --
Subordinate Bond LT   --   --   -- 03-07-20 Withdrawn 18-01-19 CRISIL AA/Stable CRISIL AA/Stable
      --   --   -- 26-06-20 CRISIL AA/Positive   -- --
      --   --   -- 15-06-20 CRISIL AA/Positive   -- --
      --   --   -- 05-06-20 CRISIL AA/Positive   -- --
      --   --   -- 03-03-20 CRISIL AA/Positive   -- --
      --   --   -- 02-03-20 CRISIL AA/Positive   -- --
      --   --   -- 31-01-20 CRISIL AA/Positive   -- --
Subordinated Debt LT 283.82 CRISIL AA+/Stable   -- 03-08-21 CRISIL AA+/Stable 24-07-20 CRISIL AA/Positive 18-01-19 CRISIL AA/Stable CRISIL AA/Stable
      --   -- 23-02-21 CRISIL AA+/Stable 16-07-20 CRISIL AA/Positive   -- --
      --   -- 15-02-21 CRISIL AA+/Stable 03-07-20 CRISIL AA/Positive   -- --
      --   --   -- 26-06-20 CRISIL AA/Positive   -- --
      --   --   -- 15-06-20 CRISIL AA/Positive   -- --
      --   --   -- 05-06-20 CRISIL AA/Positive   -- --
      --   --   -- 03-03-20 CRISIL AA/Positive   -- --
      --   --   -- 02-03-20 CRISIL AA/Positive   -- --
      --   --   -- 31-01-20 CRISIL AA/Positive   -- --
Long Term Principal Protected Market Linked Debentures LT 1000.0 CRISIL PPMLD AA+ r /Stable   -- 03-08-21 CRISIL PPMLD AA+ r /Stable 24-07-20 CRISIL PPMLD AA r /Positive   -- --
      --   -- 23-02-21 CRISIL PPMLD AA+ r /Stable 16-07-20 CRISIL PPMLD AA r /Positive   -- --
      --   -- 15-02-21 CRISIL PPMLD AA+ r /Stable 03-07-20 CRISIL PPMLD AA r /Positive   -- --
      --   --   -- 26-06-20 CRISIL PPMLD AA r /Positive   -- --
      --   --   -- 15-06-20 CRISIL PPMLD AA r /Positive   -- --
      --   --   -- 05-06-20 CRISIL PPMLD AA r /Positive   -- --
All amounts are in Rs.Cr.

       

Criteria Details
Links to related criteria
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Finance Companies
CRISILs Criteria for rating short term debt
CRISILs Criteria for Consolidation

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