The NBFC plans to diversify into fee-based services, including foreign exchange conversion and permitted overseas transfers for education, medical treatment and travel.
Highlights:
- Mufin Green Finance receives an Authorised Dealer Category-II licence.
- New services include forex conversion and permitted outward remittances.
- The company expects fee and commission income to diversify revenue.
- MD Kapil Garg expects revenue to double over the coming year.
- Q2 FY27 net profit rises to ₹15 crore from ₹6 crore.
- Gross NPA improves to 1.77% from 2.37% a year earlier.
New Delhi, November 14: Mufin Green Finance has received an Authorised Dealer Category-II (AD-II) licence from the Reserve Bank of India, allowing the non-banking financial company to enter foreign exchange and remittance services.
The licence enables the company to offer forex conversion and outward remittances under the Liberalised Remittance Scheme for education, medical treatment, travel and other permissible purposes, Mufin said in a statement.
Its permitted services also include family maintenance remittances and smaller-ticket trade-related foreign exchange transactions, expanding its business beyond lending.
New source of fee income
Mufin described the licence as an opportunity to build a capital-light business vertical. Unlike lending, which requires capital to support loan growth, forex and remittance services generate fees and commissions and can expand with limited incremental capital, the company said.
The NBFC expects the new business to diversify its revenue streams and reduce its reliance on net interest income. It also expects the expansion to improve operating leverage and return ratios over time.
Managing Director Kapil Garg said the licence would allow Mufin to address demand for foreign exchange and remittance services within a regulated framework, extending its existing ecosystem beyond credit.
With the new vertical operating alongside the lending business, Garg said the company expects revenue to double over the coming year. That remains a management expectation, with the outcome dependent on business growth and execution.
For customers, the proposed services would provide another channel for permitted foreign currency transactions and overseas payments, including expenses related to education and medical treatment.
Quarterly profit more than doubles
The announcement follows growth in Mufin’s earnings for the second quarter ended September 2026.
Net profit more than doubled to ₹15 crore, compared with ₹6 crore in the corresponding quarter a year earlier. Total income increased to ₹90 crore from ₹49 crore over the same period.
The company also reported an improvement in asset quality. Its gross non-performing asset ratio declined to 1.77% from 2.37% a year earlier, while its capital adequacy ratio stood at 27.73%.
The new licence adds a separate fee-generating activity to Mufin’s business mix as it seeks to grow alongside its lending operations. The statement did not specify a launch date or pricing for the new services.
