Muthoot Microfin shares rallied sharply on Friday, climbing 16.5% to reach an intraday peak of ₹245.
The move marks the largest single-day gain for the stock in more than a year, driven by a robust operational update for the quarter ended June 30.
The lender reported a 49% year-on-year increase in loan disbursements, signaling strong demand in its core microfinance segments.
The lender reported a 49% year-on-year increase in loan disbursements, signaling strong demand in its core microfinance segments.
Management also highlighted improvements in asset quality and a continued diversification of its loan portfolio, which has helped mitigate concentration risks that have historically weighed on the sector.
Investors have been closely watching Muthoot Microfin for signs of stabilization in the Indian microfinance industry, which has faced regulatory scrutiny and credit quality challenges in recent years.
The strong disbursement growth suggests that the company is successfully navigating these headwinds while expanding its customer base.