Muthoot Microfinance shares: In Tuesday’s afternoon session, shares of Muthoot Microfinance rose by more than 6% following the announcement that the firm has been granted a corporate agent license by the Insurance Regulatory and Development Authority of India (IRDAI). This license allows Muthoot Microfinance to provide customized insurance products to its customers.
Muthoot Microfinance’s stock saw a 6.39% increase to Rs 258 from the previous close of Rs 242.50 on the BSE. The firm’s market capitalization rose to Rs 4,205 crore. Trading activity involved 0.74 lakh shares, totaling a turnover of Rs 1.85 crore. On the BSE, Muthoot Microfinance’s market capitalization reached Rs 4,205.19 crore.
From a technical perspective, Muthoot Microfinance’s relative strength index (RSI) stands at 63.7, indicating it is currently trading within neither the overbought nor oversold zones. The company’s shares are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day moving averages.
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The corporate agent license obtained by Muthoot Microfinance will enable the company to negotiate more effectively with insurance partners and tailor products to meet the needs of its customers in rural and semi-urban areas across India. This new capability is expected to enhance revenue streams and earnings for the company.
Sadaf Sayeed, CEO of Muthoot Microfin, commented on the development, stating, At Muthoot Microfin, we continuously explore new avenues to enhance our services for microfinance customers. This collaboration with IRDAI enables us to close the protection gap for our microfinance clients. Leveraging our network of 1,508 branches across 19 states, we can reach out to 3.35 million customers without incurring additional costs. Moreover, it presents an opportunity to generate additional revenue through commissions, thereby directly bolstering our bottom line and improving our return on assets (ROAs).
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