The Kochi-based Muthoot Microfin, the microfinance arm of Muthoot Pappachan Group, reported a ₹401 crore net loss in the fourth quarter. The company attributed this to the exponential jump in provisions against bad loans.

The microfinance lender, which aims to promote entrepreneurship among women and inclusive growth, earned a net profit of ₹120 crore in the year-ago period.

For the full financial year ended March 31, 2025, the company suffered a net loss of ₹223 crore. It had posted ₹450 crore of net profit in the preceding fiscal year. Pre-provision operating profit for the year stood at ₹868 crore, up 15 per cent year-on-year, it said in a statement.

The company's total quarterly income stood at ₹556 crore, 13.79 per cent down from ₹645 crore posted a year ago.

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The company's gross non-performing assets ratio increased to 4.84 per cent at the end of the reporting period. In the regulatory filing to stock exchanges, it said the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance contributed to fluctuations in portfolio performance.

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