Muthoot Finance shares jump 4% as gold loan AUM tops Rs 1 trillion

Muthoot Finance’s shares jumped 4 per cent on Tuesday to close at Rs 2,287.15 on the BSE as the lender disclosed that its assets under management (AUM) for gold loans topped Rs 1 trillion as of March 14, owing to strong demand for gold loans amid a slowdown in credit availability from other sources.

 

In its statement, the leading gold loan NBFC said, “The milestone comes amid strong demand for gold loans, as credit availability from other sources, including fintech lending, unsecured loans, and microfinance, has moderated in recent months.”

 

The flagship company of Muthoot Group is one of the largest gold loan-focused NBFCs in India. It reported 33 per cent year-on-year (Y-o-Y) growth in net profit during the October-December quarter of FY25 (Q3FY25) to Rs 1,363 crore, while its net interest income (NII) surged 43 per cent Y-o-Y to Rs 2,721.4 crore.

 

 

Muthoot Finance strengthened its customer base by adding 1.37 million new customers in the last nine months, supported by enhanced customer acquisition strategies, the lender said.

 

George Alexander Muthoot, managing director, Muthoot Finance, said, “Reaching Rs 1 trillion in gold loan AUM is a testament to our commitment to innovation, customer-centricity, and financial inclusion.”