Muthoot Finance Credit Ratings & Financial Analysis
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BELSTAR MICROFINANCE LIMITED - AN OVERVIEW
Muthoot Finance
As of December 2020, Muthoot Finance holds 70.01% in BML. BML was incorporated on January 1988 at Bangalore and the Company
was registered with the RBI in March 2001 as a Non- Banking Finance Company. The Company was reclassified as "NBFC-MFI" by RBI
effective from 11th December 2013.
BML was acquired by the 'Hand in Hand' group in September 2008 to provide scalable microfinance services to entrepreneurs nurtured by
'Hand in Hand's' Self Help Group (SHG) program. The Company commenced its first lending operations at Haveri District of Karnataka in
March 2009 to 3 SHGs, 22 members for INR 0.20 mn.
In the last ten years of its operations, BML primarily relied on taking over the existing groups formed by Hand in Hand India. BML
predominantly follows the SHG model of lending. Effective January 2015, BML started working in JLG model of lending in Pune district,
Maharashtra.
As of December 31, 2020, BML operations are spread over 17 states and 1 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra,
Kerala, Odisha, Pondicherry, Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Haryana, Punjab, Jharkhand, Uttarakhand, West
Bengal and Tripura. It has 619 branches, with 117 controlling regional offices and employs 4365 staffs. Its gross loan portfolio has grown
from INR 0.20 mn in March 2009 to INR 28,856 mn in December 2020
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