Mufin Green Finance Limited Salary Saathi reaches Rs 90.61 crore

Mufin Green Finance Limited’s Salary Saathi assets under management (AUM) reached Rs 90.61 crore at September 2026, rising from Rs 52.97 crore at June 2026, as Q2 FY27 disbursements increased 72.2% quarter on quarter to Rs 65.79 crore and Rajasthan disbursements more than doubled.

What drove Mufin Salary Saathi disbursements in Q2 FY27?

Rajasthan drove Mufin’s Q2 FY27 step-up, contributing Rs 50.95 crore of the Rs 65.79 crore total disbursed under Salary Saathi. The state’s disbursements rose 110.2% quarter on quarter, from Rs 24.24 crore in Q1 FY27 to Rs 50.95 crore in Q2 FY27. In contrast, Assam disbursed Rs 14.84 crore in Q2 FY27, up 6.3% from Rs 13.96 crore in Q1 FY27. Rajasthan therefore supplied more than three quarters of the quarter’s combined state disbursements.

The timing within the quarter also changed materially. Rajasthan disbursed Rs 9.88 crore in July 2026, followed by Rs 21.54 crore in August and Rs 19.53 crore in September. The August-September total of Rs 41.07 crore exceeded the state’s Rs 24.24 crore disbursed in all of Q1 FY27. Assam, by comparison, recorded Rs 4.31 crore in July, Rs 4.35 crore in August and Rs 6.17 crore in September, maintaining a monthly range of about Rs 4 crore to Rs 6 crore.

How quickly did Mufin Salary Saathi AUM grow?

Mufin’s Salary Saathi AUM rose to Rs 90.61 crore at September 2026, compared with Rs 52.97 crore at June 2026 and Rs 26.40 crore at March 2026. The presentation describes the June-to-September movement as 1.7 times AUM growth in Q2 FY27. In absolute terms, AUM increased by Rs 37.64 crore over the quarter, while the September balance was Rs 64.21 crore above the March 2026 level.

The expansion in AUM occurred alongside a larger quarterly disbursement base. Total Salary Saathi disbursements increased from Rs 27.61 crore in Q4 FY26 to Rs 38.20 crore in Q1 FY27 and Rs 65.79 crore in Q2 FY27. The Q2 increase was concentrated in Rajasthan rather than evenly spread across the two disclosed states. Mufin reported a 12% to 20% internal rate of return (IRR) yield range for Salary Saathi, with a Q1 average ticket size of Rs 2.88 lakh and loan tenures of one to 60 months.

How does Mufin Salary Saathi collect repayments?

Mufin’s Salary Saathi is a payroll-linked lending product for government employees in states where the government signs a memorandum of understanding and enables payroll deductions. An employee applies digitally, and Mufin uses payroll-verified underwriting before credit is disbursed directly into the employee’s salary account. The instalment is then deducted at source from salary and remitted to Mufin, according to the product process set out for Q2 and H1 FY27.

The product’s stated design differs from Mufin’s planned contract-worker channel in both borrower type and repayment route. Salary Saathi government loans have a one- to 60-month tenure and use payroll deduction, whereas the Arthum channel is designed for contract workers with advances capped to wages already earned. Salary Saathi’s Rs 2.88 lakh Q1 average ticket is a disclosed measure, while the Arthum design specifies no average ticket and instead caps the advance to earned wages.

What is Mufin Project Arthum and when is it planned?

Mufin presents Project Arthum as a new Salary Saathi channel for FY28, aimed at contract workers whose contractors use the Arthum enterprise resource planning platform for attendance and payroll. The proposed credit check would use attendance, wages, tenure and CIBIL data through Mufin’s business rules engine. Mufin would disburse against wages already earned, with repayment automatically debited under a standing instruction when salary reaches the worker.

Management’s product design sets Arthum advances at up to about one month, with exposure described as one to three weeks and capital recycling every month. The presentation identifies four risk-management mechanisms: lending only against accrued wages, short duration, live attendance data that can signal exits, and Mufin’s control of credit policy, pricing and every sanction as sole lender of record. These are planned channel features for FY28 rather than reported FY27 lending performance.

How does Salary Saathi fit Mufin’s stated portfolio strategy?

Mufin identifies Salary Saathi and Mediclaim as focus verticals funded in part by cash generated from climate financing, which is in managed run-down. Climate-financing AUM was Rs 338.47 crore at September 2026, down 17.6% quarter on quarter from Rs 411 crore in Q1 FY27, even as its Q2 FY27 disbursements rose to Rs 59.20 crore from Rs 51 crore in Q1. Salary Saathi’s Rs 90.61 crore September AUM therefore remained smaller than the climate portfolio while Salary Saathi AUM was increasing.

The disclosed funding context also includes Mufin’s cost-of-borrowings trajectory. Its actual cost of borrowings declined from 13.12% at September 2025 to 12.15% at March 2026 and 11.96% at September 2026. Management attributed the Q2 FY27 level partly to prepayment charges on high-cost loans and stated a 10.5% outlook for March 2027. The presentation also listed September 2026 term loans of Rs 24.55 crore from IDBI Bank and Rs 9.79 crore from South Indian Bank.

Conclusion

The disclosures show that Salary Saathi’s Q2 FY27 expansion was geographically concentrated: Rajasthan supplied Rs 50.95 crore of the Rs 65.79 crore disbursed, while Assam contributed Rs 14.84 crore. This concentration coincided with a Rs 37.64 crore quarter-on-quarter increase in Salary Saathi AUM, whereas Mufin’s climate-financing AUM declined 17.6% to Rs 338.47 crore.

The next disclosed product milestone is Mufin’s planned FY28 Arthum channel for contract workers, which would use attendance, wage and CIBIL data instead of government payroll deductions. Readers can also watch whether management reaches its stated March 2027 cost-of-borrowings target of 10.5% and whether the managed run-down of climate financing continues to fund the two focus verticals.