Muthoot Microfin gains over 3% after IRDAI approves corporate agent license

The stock rose 3.72% to ₹251.9 on the National Stock Exchange. Intraday, it hit a high of ₹257.9.

"This license strengthens Muthoot Microfin's commitment to financial inclusion by providing insurance coverage that addresses the risks faced by the most vulnerable segments of society," the company said in an exchange filing.

The NBFC said that the corporate agency license will help it negotiate with insurance partners and customise products for customers in rural and semi-urban geographies across India.

Sadaf Sayeed, Chief Executive Officer (CEO) of Muthoot Microfin, said, "This development with IRDAI empowers us to bridge the protection gap for our microfinance customers. We can utilise our network of 1,508 branches spread across 19 states to reach out to 3.35 million customers".

The company, which is part of the Kerala-based Muthoot Pappachan group, registered a 27% year-on-year (YoY) increase in its net profit to ₹120 crore in the fourth quarter of the financial year 2023-24.

Its total income increased 46% YoY to ₹653 crore, while disbursement stood at ₹10,661.59 crore. The net interest margin for the latest March quarter was ₹13.52%, an increase of 65 basis points from the year-ago period.