Muthoot Finance Limited — Important, 12-03-2025: Updates

Muthoot Finance Limited provides clarification regarding reports of fraud involving the company's subsidiary, Muthoot Insurance Brokers Private Limited. The incident pertains to the misappropriation of rewards, specifically gift cards intended for employee distribution, totaling approximately Rs. 11.92 Crores between April 2023 and November 2024. While there is no financial impact on Muthoot Finance, the notional loss in revenue is estimated at Rs. 31.28 Crores, which reflects potential business that could have been generated had the rewards been properly distributed. The individuals involved include the suspended CEO of Muthoot Insurance Brokers and a former executive of Muthoot Finance. The case has been reported to local police, with a formal complaint and FIR registered. Investors should monitor the situation closely, as reputational risks and operational integrity may impact the company moving forward.