Why excitement in Manappuram stock post lifting of microfinance ban faded
5 days, 23 hours ago

Why excitement in Manappuram stock post lifting of microfinance ban faded

Live Mint  

Manappuram Finance Ltd stock rose 5.5% in early trade on Thursday after the Reserve Bank of India lifted restrictions on its microfinance arm, Asirvad Micro Finance Ltd, with immediate effect. AMFL’s AUM growth was just 8% year-on-year in H1FY25 on a much lower base compared to 17% of other loans even before the RBI ban. Interestingly, despite the higher interest rate charged to borrowers by AMFL, its PBT margin was much lower at 15% compared to 36% of other loans of Manappuram. According to Care Ratings, interest rate on MFI loans was 25% in FY24 and after the RBI action, the new lending rate of AMFL could be around 23%.

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