Mumbai, January 9, 2026 – Muthoot Microfin Limited has settled a provident fund-related issue after remitting penal damages amounting to ₹40.08 lakh, bringing the matter to a close.
Background of the Matter
The issue arose from delays in remitting provident fund contributions, with the major portion linked to the nationwide lockdown period in April 2020. During this phase, the company’s offices and branches remained shut. To support employees amid the disruption, Muthoot Microfin extended advance salaries to its workforce.Accounting Treatment and Remittance Timeline
The advances provided during the lockdown were formally accounted for as salary in February 2021. Following this accounting treatment, the company remitted the corresponding provident fund contributions in March 2021. Certain minor administrative delays across other periods were also identified as part of the overall assessment.Settlement and Financial Impact
To conclude the matter and avoid further litigation costs, the company deposited penal damages of ₹40.08 lakh. With this payment, the proceedings stand closed. Muthoot Microfin stated that the settlement is not expected to have any material impact on its financial position, operations, or other business activities beyond the amount paid.About the Company
Muthoot Microfin Limited is a listed non-banking financial company focused on microfinance lending. It primarily serves underserved and unbanked segments across India, offering income-generating loans to women entrepreneurs through an extensive branch network and structured credit products.Source:
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