Shares of Muthoot Microfin rose 3% after the company secured a corporate agent license from the Insurance Regulatory and Development Authority of India (IRDAI). This will allow the company to offer customised insurance plans to its vast customer base.

What Happened: As per a regulatory filing, Muthoot Microfin has been granted a corporate agent license by the IRDAI. This step fortifies the company’s pledge towards financial inclusion by offering insurance coverage that caters to the risks encountered by the most vulnerable sections of society. The license will enable Muthoot Microfin to provide both financial and insurance solutions to its 33.5 lakh customers under a single umbrella.

The corporate agent license will empower Muthoot Microfin to negotiate more effectively with insurance partners and tailor products to meet the requirements of its customers in rural and semi-urban regions across India, the company said in the filing. With this new license, Muthoot Microfin can offer the appropriate insurance products to its customers while enhancing its revenue and earnings sources.

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Sadaf Sayeed, CEO, Muthoot Microfin, expressed his views on this strategic move, stating that it enables the company to fill the protection gap for their microfinance customers. The company can leverage its network of 1,508 branches spread across 19 states to cater to 33.5 lakh customers without any additional expenditure.

Price Action: Shares of Muthoot Microfin rose 3.16% to ₹250.57 on Tuesday afternoon.

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