# El Niño impact on rural borrowers eases, says Muthoot Microfin CEO 2026-08-10T08:56:02+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet The impact of El Niño on rural borrowers is fading as rainfall improves, according to Sadaf Sayeed, CEO of Muthoot Microfin. The rain deficit has narrowed from 43% to about 12%, boosting cash flows at the bottom of the pyramid. The company reported a sharp improvement in Q1 asset quality, with collection efficiency rising to 97.97% from 93% a year ago and gross NPAs falling to 3.7% from 4.85%. Muthoot Microfin has raised its FY27 AUM growth guidance to 18-20% from 12-15% and expects to cross Rs 17,000 crore in AUM. Credit costs halved to 2.6%, and net interest margin stood at 12%. The company is diversifying beyond group lending, achieving a 24% share of non-group loans in Q1, and plans to add 70 branches this year. However, Sayeed cautioned that the microfinance sector remains challenging, especially for smaller entities. ## Coverage - livemint.com Tags: credit guarantee scheme, El Nino, microfinance, Muthoot Microfin, rain deficit, rural borrowers Canonical: https://indianopinion.org/el-nino-impact-on-rural-borrowers-eases-says-muthoot-microfin-ceo/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/el-nino-impact-on-rural-borrowers-eases-says-muthoot-microfin-ceo/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.