Rating Release

 Agusto & Co. hereby assigns a “B” rating to Grooming Microfinance Bank Limited with a stable outlook

 The rating expires on 30 June 2025

Agusto & Co. hereby assigns a “B” rating to Grooming Microfinance Bank Limited (“Grooming MFB” or “the MFB”). The rating reflects Grooming MFB’s good funding and liquidity profile and strong support from a large microfinance institution. However, the rating is constrained by the MFB’s subpar profitability, weak capitalisation, asset quality that requires improvement and the limited activities around the core business of lending to small businesses. We have also considered the challenges in the macro environment and the impact on the microfinance industry.

Grooming MFB is a state microfinance bank that provides financial services to micro, small and medium-sized enterprises (MSMEs), low-income earners and “table top” traders.