Rating Rationale
March 03, 2020 | Mumbai
Muthoot Finance Limited
 
Rating Action
Non Convertible Debentures Aggregating Rs.2000 Crore CRISIL AA/Positive
Non Convertible Debentures Aggregating Rs.4000 Crore CRISIL AA/Positive
Rs.4000 Crore Non-Convertible Debentures  CRISIL AA/Positive
Rs.411 Crore Non-Convertible Debentures  CRISIL AA/Positive
Rs.1500 Crore Non-Convertible Debentures CRISIL AA/Positive
Rs.1950 Crore Non-Convertible Debentures CRISIL AA/Positive
Rs.1300 Crore Non-Convertible Debentures CRISIL AA/Positive
Rs.365.27 Crore Non-Convertible Debentures  CRISIL AA/Positive
Rs.3.78 Crore Non-Convertible Debentures  CRISIL AA/Positive
Rs.3.92 Crore Non-Convertible Debentures  CRISIL AA/Positive
Rs.5.18 Crore Non-Convertible Debentures  CRISIL AA/Positive
Rs.92.62 Crore Non-Convertible Debentures  CRISIL AA/Positive
Rs.500 Crore Non-Convertible Debentures CRISIL AA/Positive
Rs.43.7571 Crore Subordinate Bond CRISIL AA/Positive
Rs.23.2879 Crore Subordinate Bond CRISIL AA/Positive
Rs.20.93 Crore Subordinate Bond CRISIL AA/Positive
Rs.100 Crore Subordinate Bond CRISIL AA/Positive
Rs.50 Crore Subordinated Debt CRISIL AA/Positive
Rs.31.78 Crore Subordinated Debt CRISIL AA/Positive
Rs.23.0392 Crore Subordinated Debt CRISIL AA/Positive
Rs.5000 Crore Commercial Paper CRISIL A1+
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale

CRISIL ratings on outstanding debt instrument of Muthoot Finance Limited (Muthoot Finance) continue to factor in the long track record of Muthoot Finance's promoters in the gold financing business - spanning over eight decades, which has been supported by the brand's strong reputation in South India, particularly in Tamil Nadu and Kerala. The aforementioned strengths are partially offset by high geographical concentration of loan portfolio and operations in South India ' which accounted for 48% of the Assets under Management and housed 60% of the branches, as of December 31, 2019 and; inherent challenges in profitably scaling up the non-gold loan segments.
 
On January 31, 2020, CRISIL had revised its rating outlook on the long-term debt instruments of Muthoot Finance Limited (Muthoot Finance) to 'Positive' from 'Stable' while reaffirming the rating at 'CRISIL AA'. The rating on commercial paper programme was reaffirmed at 'CRISIL A1+'.
 
The revision in outlook is driven by Muthoot Finance's demonstrated ability to sustain its strong financial risk profile while profitably scaling its core gold loan business and maintaining asset quality. Having registered a 3 year CAGR of 15.7% - to achieve a consolidated assets under management (AUM) of Rs 38,304 crore as of March 31, 2019 which further increased to Rs 43,436 crore by the end of December 31, 2019, the company continues to retain its leadership position among non-banking financial companies (NBFCs) in the gold financing business. The gold loan book grew at 11% CAGR over last 3 years while the non-gold segments registered a growth of over 100% over similar period, albeit on a smaller base. Asset quality as measured by annualised credit costs has also been under control, despite non-performing asset (NPA) levels exhibiting a rise in Q4 of fiscal 2018, though it has since moderated. Stage III assets stood at 2.54% as on December 31, 2019, as compared to 4.4% (gross NPA of 7%) on March 31, 2018.
 
Profitability has remained healthy over the years and, has improved further in the last 2-3 fiscals, evidenced by a consolidated return on managed assets (RoMA) of 6.8% (annualised) and 5.6% for nine month ended December 2019 and full fiscal 2019, respectively, against a RoMA of 3% for fiscal 2016. The improvement has been supported by high margins and low credit costs (particularly after implementation of IndAS) and, further bolstered by increased collection of interest.
 
The company has strengthened its capital position alongside ramp up in scale of operations, maintaining adequate networth and a comfortable gearing during the course of it. Capitalisation remains strong as reflected in the reported networth of Rs 11,642 crore (consolidated), tier I capital adequacy of 26.18% and a low gearing of 3.2 times at a consolidated level, on December 31, 2019. Over the last 5 fiscals, gearing (standalone) has remained below 4 times whereas Tier I capital (standalone) adequacy has remained above 20%.
 
Apart from strengthening its standalone capital position, CRISIL believes that strong internal cash generation from gold finance business will also help Muthoot Finance to prudently capitalise its subsidiaries as they diversify into other asset classes including microfinance, vehicle finance and housing finance. Non-gold segments now constitute about 13.1% of the total loan portfolio.
 
In terms of funding, through the first nine months of fiscal 2020, the company has raised over Rs 21,000 crore (excluding working capital demand loans (WCDL) / cash credit (CC)) from various routes. Apart from being an active issuer in the domestic debt capital market, Muthoot Finance has also raised Rs 3,188 crore as external commercial borrowing in the third quarter of fiscal 2020. While a larger proportion of borrowing has been sourced as funding lines from banks and financial institutions (40%), the company's resource profile remains diversified across avenues like non-convertible debentures and subordinated debt (34%), commercial paper (14%), External commercial borrowing (10%) and other sources (2%) ' as of December 31, 2019
 
Liquidity position remains strong, reflected in an inherently well-matched asset liability maturity (ALM) profile. As per the ALM statement dated December 31, 2019, there were no negative gaps on cumulative basis in maturity buckets up to the succeeding 12 months.

Analytical Approach

To arrive at the rating, CRISIL has evaluated the consolidated business and financial risk profile of Muthoot Finance and its subsidiaries, including Muthoot Homefin India Limited, Belstar Microfinance Private Limited and Muthoot Money Private Limited.

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 4,500 branches - spanning across India, which has continued to support its market share of >45% within the universe of NBFCs carrying out gold loan business over the years. Despite modest volume growth, the company's gold AUM grew by 16% in fiscal 2019 to reach Rs 33,585 crore at the end of March 2019 and further to 37,724 crore as of December 31, 2019. The company's operating efficiency - indicated in terms of gold AUM per branch - remains high at Rs 8.3 crore as of December 31, 2019, higher than Rs 7.2 crore - a year ago. Over the same period, gold holding increased to 173 tonnes from 166 tonnes.
 
Muthoot Finance's extensive branch network and client base, which is relatively more diverse in terms of geographies and is gradually improving further, will improve its competitive position over the medium term. While the company has started to diversify into non-gold segments, its primary focus would remain on gold.
 
* Strong capitalisation
Muthoot Finance's capital position remains strong in relation to its scale and nature of operations, supported its demonstrated ability to raise capital frequently and large accretions to networth. As of December 31, 2019, the company reported a consolidated networth of Rs 11,642 crore and gearing remained comfortable at 3.2 times. Tier I and overall capital adequacy ratios have also remained comfortably >20% over the last few years owing to moderated growth in business, and stood at 26.18% and 26.51% respectively on December 31, 2019. Over the medium term, the AUM in the gold loan segment is not expected to grow sharply and the share of non-gold segments (affordable housing finance, and microfinance finance) would remain relatively small scale, therefore ' capitalisation is expected to remain adequate. Even after factoring in leverage in the key subsidiaries, CRISIL believes that consolidated gearing will remain below 5 times over the medium term.
 
* Profitability to remain healthy
Profitability continues to improve reflected in standalone return on assets (RoA) of 5.7% for fiscal 2019 and fiscal 2018 which was higher than 4.1% for fiscal 2017. This improvement can be attributed to dedicated recovery efforts, favorable movement in gold prices and reduction in provisioning requirements after implementation of IndAS. Despite charging yields which are lower than industry average, the company has been able to sustain margins on account of its high operating efficiency.

Over fiscal 2019, increased focus on collection of interest on a regular basis along with revision in its interest rates on different schemes, has resulted in sustenance of margins. Additionally, operating expenses remained low and credit costs reduced after implementation of IndAS. Asset quality as measured by annualised credit costs has also been under control, despite non-performing asset (NPA) levels exhibiting a rise in Q4 of fiscal 2018, though it has since moderated. Stage III assets stood at 2.54% as on December 31, 2019, as compared to 4.4% (GNPA of 7%) on March 31, 2018.  Lower asset-side risk (security of gold, which is liquid and is in the lender's possession) helps in controlling credit costs in the gold finance business. Over the last three years, credit costs have remained sub 1% of total assets. Profitability is expected to remain healthy in the normal course of business, supported by sustained margins and low operating expenses and credit costs. As the group is diversifying into other segments, asset quality within non-gold businesses would remain a monitorable.
 
Weaknesses:
* Geographical and segmental concentration in operations
Despite gradual increase in diversification over time, Muthoot Finance's operations have a high degree of geographical concentration in operations. South India accounted for 48% of the company's AUM and 60% of its branches as on December 31, 2019. Significant regional concentration exposes the company vulnerabilities of economic, social, and political disruptions in the region. Furthermore, implementation of the Kerala Money Lenders Act, 1958, for NBFCs (which depends on the decision of the Supreme Court) could affect Muthoot Finance's lending rates and operational expenditure as the compliance requirements under the act would be rigorous and cumbersome. This will remain a key rating monitorable.
 
In terms of concentration across segments, Muthoot Finance has steadily diversified its product suite across housing finance (Muthoot Homefin), microfinance (Belstar Investments), vehicle finance (Muthoot Money) and a few other segments. This expansion into non- gold segments and growth of these businesses has resulted in their share in the consolidated AUM, going up to almost 13% as of December 31, 2019. However, it still remains low - reflecting high segmental concentration in AUM and revenue profile as majority income flows through the gold loan business.
 
* 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 unorganised segments. Therefore, the delinquencies from this book may increase as the portfolio achieves more seasoning. Similarly, microfinance loans, 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, which is relatively new, deals with lending against commercial vehicles and equipment - majority of which are old vehicles. 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

CRISIL's analysis of Muthoot Finance's ALM profile as of December 2019 shows cumulative positive gaps across all buckets up to 1 year. As per its ALM profile, Muthoot Finance had outflows of Rs 21,663 crore till 1 year and against this, the inflows were Rs 43,259 crore. Of the inflows maturing within the 1 year bucket (i.e. Rs 33,778 crore), 78% were due for maturity within 6 months.
 
Further, the company has raised Rs 21,018 crore in the first 9 months of fiscal 2020 and has additional support in the form of unutilized bank lines. Its existing relationship with 25 banks and financial institutions would further enhance its ability to raise time based funds. Additionally, the company had liquidity of Rs 2,830 crore in the form of cash and bank balance and unutilised bank lines aggregating to Rs 2079 crore as on 31st December, 2019.

Outlook: Positive

CRISIL believes the company will sustain its strong capitalisation and healthy profitability. Asset quality within the gold business, which accounts for majority proportion of the AUM, would remain stable - supported by increased frequency of interest collections and the highly liquid nature of the underlying security - gold - which should keep credit losses very low. For non-gold segments, maintenance of asset quality and profitability alongside growth, remains a monitorable.

Rating Sensitivity factors
Upward factors
* Maintaining its strong market position in the gold finance business while increasing diversity in AUM mix
* Sustenance in profitability with RoMA at above 5% on a steady state basis, while improving asset quality
 
Downward factors
* Significant and sustained deterioration in asset quality and profitability, leading to moderation in capital position - reflected in the tier I CAR declining to below 15%.
* Inability to maintain momentum of growth in the gold loan business, resulting in a significant decline in market share.
About the Company

Muthoot Finance, an NBFC, was originally set up as a private limited company in 1997; this was reconstituted as a public limited company in November 2008. It provides finance against used household gold jewelry; the promoters' family has been in this business for over seven decades, during the initial days - the business was carried out under the name 'Muthoot Bankers'ï'½? which was a partnership firm. Muthoot Finance is the flagship company of the Muthoot group (promoters of Muthoot Finance), which is also in the hospitality, healthcare, media, education, information technology, foreign exchange, insurance distribution, and money transfer businesses. The company had a nationwide network of around 4536 branches as on December 31st, 2019. It had gold loan advances book of Rs 37,724 Crore, and a networth of Rs 11,642 crore (consolidated) on December 31, 2019.
 
The company's consolidated PAT and total income for fiscal 2019, increased to Rs 2103 crore and Rs 7601 crore, from previous fiscal's PAT and total income of Rs 1844 crore and Rs 6782 crore respectively.
 
For nine month ended December 2019, consolidated PAT and total income stood at Rs 2321 crore and Rs 7066 crore respectively.

Key Financial Indicators - (Muthoot Finance; Standalone)
As on/ for the period ended   Dec-19 Mar-19 Mar-18
Total managed assets Rs crore 45369 38069 30,792
Total income Rs crore 6312 6881 6,333
Profit after tax Rs crore 2191 1972 1,777
Gross NPA % 2.5 2.7 4.4
Gearing Times 2.9 2.7 2.7
Return on managed assets (annualised) % 7.0 5.7 5.8

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL complexity levels for instruments that they consider for investment. 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) Ratings
NA Debentures^ NA NA NA 4000 CRISIL AA/Positive
NA Debentures^ NA NA NA 2000 CRISIL AA/Positive
INE414G07EP9 Secured Redeemable Non-Convertible Debentures 24-Feb-20 9.5 11-Mar-22 175 CRISIL AA/Positive
INE414G07AS1 Secured Redeemable Non-Convertible Debentures 20-Jan-16 9.25 & 8.50 20-Jan-21 1.4 CRISIL AA/Positive
INE414G07AV5 Secured Redeemable Non-Convertible Debentures 20-Jan-16 9.50 & 8.75 20-Jan-21 0.8 CRISIL AA/Positive
INE414G07AZ6 Secured Redeemable Non-Convertible Debentures 20-Jan-16 N.A 20-Jan-21 0.6 CRISIL AA/Positive
INE414G07BQ3 Secured Redeemable Non-Convertible Debentures 30-Jan-17 9.00 & 8.75 30-Jan-22 11.1 CRISIL AA/Positive
INE414G07BT7 Secured Redeemable Non-Convertible Debentures 30-Jan-17 9.25 & 9.00 30-Jan-22 82.5 CRISIL AA/Positive
INE414G07BZ4 Secured Redeemable Non-Convertible Debentures 24-Apr-17 8.5 24-Jun-20 68.7 CRISIL AA/Positive
INE414G07CA5 Secured Redeemable Non-Convertible Debentures 24-Apr-17 8.75 24-Apr-22 61.2 CRISIL AA/Positive
INE414G07CC1 Secured Redeemable Non-Convertible Debentures 24-Apr-17 8.75 24-Jun-20 1420.4 CRISIL AA/Positive
INE414G07CD9 Secured Redeemable Non-Convertible Debentures 24-Apr-17 9 24-Apr-22 190.6 CRISIL AA/Positive
INE414G07CH0 Secured Redeemable Non-Convertible Debentures 24-Apr-17 N.A 24-Jun-20 38 CRISIL AA/Positive
INE414G07CI8 Secured Redeemable Non-Convertible Debentures 19-Apr-18 8.25 19-Apr-20 11.98 CRISIL AA/Positive
INE414G07CJ6 Secured Redeemable Non-Convertible Debentures 19-Apr-18 8.5 19-Jun-21 27.11 CRISIL AA/Positive
INE414G07CK4 Secured Redeemable Non-Convertible Debentures 19-Apr-18 8.75 19-Apr-23 56.51 CRISIL AA/Positive
INE414G07CL2 Secured Redeemable Non-Convertible Debentures 19-Apr-18 8.5 19-Apr-20 71.61 CRISIL AA/Positive
INE414G07CM0 Secured Redeemable Non-Convertible Debentures 19-Apr-18 8.75 19-Jun-21 1862.45 CRISIL AA/Positive
INE414G07CN8 Secured Redeemable Non-Convertible Debentures 19-Apr-18 9 19-Apr-23 721.85 CRISIL AA/Positive
INE414G07CP3 Secured Redeemable Non-Convertible Debentures 19-Apr-18 N.A 19-Apr-20 8.8 CRISIL AA/Positive
INE414G07CQ1 Secured Redeemable Non-Convertible Debentures 19-Apr-18 N.A 19-Jun-21 19.74 CRISIL AA/Positive
INE414G07CR9 Secured Redeemable Non-Convertible Debentures 19-Apr-18 N.A 19-Apr-23 205.55 CRISIL AA/Positive
INE414G07CY5 Secured Redeemable Non-Convertible Debentures 20-Mar-19 N.A 20-Mar-21 36.01 CRISIL AA/Positive
INE414G07DB1 Secured Redeemable Non-Convertible Debentures 20-Mar-19 9.25 20-Mar-21 40.12 CRISIL AA/Positive
INE414G07DE5 Secured Redeemable Non-Convertible Debentures 20-Mar-19 9.5 20-Mar-21 79.28 CRISIL AA/Positive
INE414G07CZ2 Secured Redeemable Non-Convertible Debentures 20-Mar-19 N.A 20-May-22 151.74 CRISIL AA/Positive
INE414G07DC9 Secured Redeemable Non-Convertible Debentures 20-Mar-19 9.5 20-May-22 79.45 CRISIL AA/Positive
INE414G07DF2 Secured Redeemable Non-Convertible Debentures 20-Mar-19 9.75 20-May-22 73.71 CRISIL AA/Positive
INE414G07DA3 Secured Redeemable Non-Convertible Debentures 20-Mar-19 N.A 20-Mar-24 46.75 CRISIL AA/Positive
INE414G07DD7 Secured Redeemable Non-Convertible Debentures 20-Mar-19 9.75 20-Mar-24 110.64 CRISIL AA/Positive
INE414G07DG0 Secured Redeemable Non-Convertible Debentures 20-Mar-19 10 20-Mar-24 91.76 CRISIL AA/Positive
INE414G07DH8 Secured Redeemable Non-Convertible Debentures 14-Jun-19 9.25 14-Jun-21 72.76 CRISIL AA/Positive
INE414G07DK2 Secured Redeemable Non-Convertible Debentures 14-Jun-19 9.5 14-Jun-21 94.59 CRISIL AA/Positive
INE414G07DN6 Secured Redeemable Non-Convertible Debentures 14-Jun-19 N.A 14-Jun-21 30.29 CRISIL AA/Positive
INE414G07DI6 Secured Redeemable Non-Convertible Debentures 14-Jun-19 9.5 14-Aug-22 87.16 CRISIL AA/Positive
INE414G07DL0 Secured Redeemable Non-Convertible Debentures 14-Jun-19 9.75 14-Aug-22 71.27 CRISIL AA/Positive
INE414G07DO4 Secured Redeemable Non-Convertible Debentures 14-Jun-19 N.A 14-Aug-22 157.29 CRISIL AA/Positive
INE414G07DJ4 Secured Redeemable Non-Convertible Debentures 14-Jun-19 9.75 14-Jun-24 105.81 CRISIL AA/Positive
INE414G07DM8 Secured Redeemable Non-Convertible Debentures 14-Jun-19 10 14-Jun-24 179.47 CRISIL AA/Positive
INE414G07DP1 Secured Redeemable Non-Convertible Debentures 14-Jun-19 N.A 14-Jun-24 20.82 CRISIL AA/Positive
INE414G07DQ9 Secured Redeemable Non-Convertible Debentures 14-Jun-19 N.A 14-Dec-26 32.24 CRISIL AA/Positive
INE414G07DT3 Secured Redeemable Non-Convertible Debentures 01-Nov-19 9.25 01-Nov-21 45.56 CRISIL AA/Positive
INE414G07DU1 Secured Redeemable Non-Convertible Debentures 01-Nov-19 9.5 01-Jan-23 53.73 CRISIL AA/Positive
INE414G07DV9 Secured Redeemable Non-Convertible Debentures 01-Nov-19 N.A 01-Nov-24 89.82 CRISIL AA/Positive
INE414G07DW7 Secured Redeemable Non-Convertible Debentures 01-Nov-19 9.5 01-Nov-21 54.83 CRISIL AA/Positive
INE414G07DX5 Secured Redeemable Non-Convertible Debentures 01-Nov-19 9.75 01-Jan-23 40.99 CRISIL AA/Positive
INE414G07DY3 Secured Redeemable Non-Convertible Debentures 01-Nov-19 N.A 01-Nov-24 53.62 CRISIL AA/Positive
INE414G07DZ0 Secured Redeemable Non-Convertible Debentures 01-Nov-19 9.75 01-Nov-21 26.05 CRISIL AA/Positive
INE414G07EA1 Secured Redeemable Non-Convertible Debentures 01-Nov-19 10 01-Jan-23 38.02 CRISIL AA/Positive
INE414G07EB9 Secured Redeemable Non-Convertible Debentures 01-Nov-19 N.A 01-Nov-24 14 CRISIL AA/Positive
INE414G07EC7 Secured Redeemable Non-Convertible Debentures 01-Nov-19 N.A 01-May-27 43.2 CRISIL AA/Positive
INE414G07EH6 Secured Redeemable Non-Convertible Debentures 27-Dec-19 9.25 27-Dec-21 63.8 CRISIL AA/Positive
INE414G07EI4 Secured Redeemable Non-Convertible Debentures 27-Dec-19 9.5 27-Feb-23 54.69 CRISIL AA/Positive
INE414G07EJ2 Secured Redeemable Non-Convertible Debentures 27-Dec-19 N.A 27-Dec-24 81.83 CRISIL AA/Positive
INE414G07EK0 Secured Redeemable Non-Convertible Debentures 27-Dec-19 9.5 27-Dec-21 285.72 CRISIL AA/Positive
INE414G07EL8 Secured Redeemable Non-Convertible Debentures 27-Dec-19 9.75 27-Feb-23 117.08 CRISIL AA/Positive
INE414G07EM6 Secured Redeemable Non-Convertible Debentures 27-Dec-19 N.A 27-Dec-24 54.38 CRISIL AA/Positive
INE414G07ED5 Secured Redeemable Non-Convertible Debentures 27-Dec-19 9.75 27-Dec-21 34.47 CRISIL AA/Positive
INE414G07EE3 Secured Redeemable Non-Convertible Debentures 27-Dec-19 10 27-Feb-23 40.78 CRISIL AA/Positive
INE414G07EF0 Secured Redeemable Non-Convertible Debentures 27-Dec-19 N.A 27-Dec-24 12.66 CRISIL AA/Positive
INE414G07EG8 Secured Redeemable Non-Convertible Debentures 27-Dec-19 N.A 27-Jun-27 44.6 CRISIL AA/Positive
INE414G07CS7 Secured Redeemable Non-Convertible Debentures 26-Jul-18 9.75 26-Jul-21 175 CRISIL AA/Positive
NE414G07CT5 Secured Redeemable Non-Convertible Debentures 13-Aug-18 9.6 22-Jun-20 250 CRISIL AA/Positive
INE414G08306 Subordinated Debt 20-Jan-16 N.A 20-Apr-23 23 CRISIL AA/Positive
INE414G08330 Subordinated Debt 30-Jan-17 N.A 30-Jan-25 31.8 CRISIL AA/Positive
INE414G08348 Subordinated Debt 24-Apr-17 N.A 24-Apr-25 18.72 CRISIL AA/Positive
INE414G09015 Subordinated Bond 26-Mar-13 N.A 26-Mar-23 10 CRISIL AA/Positive
N.A. Subordinated Bond^ N.A N.A N.A 90 CRISIL AA/Positive
N.A. Subordinated Debt^ N.A N.A N.A 31.28 CRISIL AA/Positive
N.A. Commercial Paper N.A N.A 7-365 days 5000 CRISIL A1+
^Yet to be issued
 
Annexure - List of entities consolidated
Entity consolidated Extent of consolidation Rationale for consolidation
Muthoot Homefin (India) Ltd Full Consolidation Subsidiary
Belstar Microfinance Private Limited Full Consolidation Subsidiary
Muthoot Money Limited Full Consolidation Subsidiary
Annexure - Rating History for last 3 Years
  Current 2020 (History) 2019  2018  2017  Start of 2017
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Commercial Paper  ST  5000.00  CRISIL A1+  02-03-20  CRISIL A1+  18-01-19  CRISIL A1+  29-11-18  CRISIL A1+  31-10-17  CRISIL A1+  -- 
        31-01-20  CRISIL A1+      19-09-18  CRISIL A1+       
                31-07-18  CRISIL A1+       
                29-01-18  CRISIL A1+       
                19-01-18  CRISIL A1+       
Non Convertible Debentures  LT  10860.89
03-03-20 
CRISIL AA/Positive  02-03-20  CRISIL AA/Positive  18-01-19  CRISIL AA/Stable  29-11-18  CRISIL AA/Stable  31-10-17  CRISIL AA/Stable  CRISIL AA/Stable 
        31-01-20  CRISIL AA/Positive      19-09-18  CRISIL AA/Stable  24-10-17  CRISIL AA/Stable   
                31-07-18  CRISIL AA/Stable  08-03-17  CRISIL AA/Stable   
                29-01-18  CRISIL AA/Stable       
                19-01-18  CRISIL AA/Stable       
Short Term Debt  ST                  24-10-17  CRISIL A1+  CRISIL A1+ 
                    08-03-17  CRISIL A1+   
Subordinate Bond  LT  143.80
03-03-20 
CRISIL AA/Positive  02-03-20  CRISIL AA/Positive  18-01-19  CRISIL AA/Stable  29-11-18  CRISIL AA/Stable  31-10-17  CRISIL AA/Stable  CRISIL AA/Stable 
        31-01-20  CRISIL AA/Positive      19-09-18  CRISIL AA/Stable  24-10-17  CRISIL AA/Stable   
                31-07-18  CRISIL AA/Stable  08-03-17  CRISIL AA/Stable   
                29-01-18  CRISIL AA/Stable       
                19-01-18  CRISIL AA/Stable       
Subordinated Debt  LT  104.80
03-03-20 
CRISIL AA/Positive  02-03-20  CRISIL AA/Positive  18-01-19  CRISIL AA/Stable  29-11-18  CRISIL AA/Stable  31-10-17  CRISIL AA/Stable  CRISIL AA/Stable 
        31-01-20  CRISIL AA/Positive      19-09-18  CRISIL AA/Stable  24-10-17  CRISIL AA/Stable   
                31-07-18  CRISIL AA/Stable  08-03-17  CRISIL AA/Stable   
                29-01-18  CRISIL AA/Stable       
                19-01-18  CRISIL AA/Stable       
All amounts are in Rs.Cr.
Links to related criteria
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Finance Companies
CRISILs Criteria for Consolidation
CRISILs Criteria for rating short term debt

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About CRISIL Ratings
CRISIL Ratings is part of CRISIL Limited (“CRISIL”). We pioneered the concept of credit rating in India in 1987. CRISIL is registered in India as a credit rating agency with the Securities and Exchange Board of India (“SEBI”). With a tradition of independence, analytical rigour and innovation, CRISIL sets the standards in the credit rating business. We rate the entire range of debt instruments, such as, bank loans, certificates of deposit, commercial paper, non-convertible / convertible / partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 24,500 large and mid-scale corporates and financial institutions. CRISIL has also instituted several innovations in India in the rating business, including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We also pioneered a globally unique rating service for Micro, Small and Medium Enterprises (MSMEs) and significantly extended the accessibility to rating services to a wider market. Over 1,10,000 MSMEs have been rated by us.


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