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Muthoot Finance to slow down growth this fiscal

26 Apr 2012 Evaluate

Muthoot Finance, largest gold loan company is expecting 15-25% growth in the current fiscal, which is slower than earlier pace, as it grew over 100% two years ago. In 2010-11, its assets under management (AUM) grew over 100% to Rs 15,000 crore, while in 2011-12 it registered about 50% growth at Rs 24,000 crore.

In the last two years company has opened 900 branches in each year but this year company is likely to go slow on its branch expansion plans too. The consolidation plans come at a time when the RBI has also asked banks to reduce their exposure to gold-loan companies such as Muthoot Finance from 10% to 7.5% of their net-owned funds.

Muthoot Finance is a non-deposit taking systemically important non-banking finance company (NBFC). It is primarily in the business of lending against used household gold jewellery to individuals. The company provides personal and business loans secured by gold jewellery, or gold loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, to meet short-term liquidity requirements.

Muthoot Finance Share Price

3570.30 33.60 (0.95%)
07-May-2026 10:07 View Price Chart
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