ETMarkets Management Talk | Gold loans are smart loans due to faster processing, flexible repayment options: Muthoot Finance MD
Indians are now considering gold loans as smart loans due to their faster processing and flexible repayment options, says George Alexander Muthoot, MD, Muthoot Finance. The NBFC, which has received permission from the RBI to open 114 new branches, is optimistic about growing its gold loan book by 10-15% in FY24. Edited excerpts from an interview:
Your loan AUM rose 21% YoY to Rs 76,799 crore in Q1. What is the guidance ahead of the festive season?
We are delighted to report strong growth in an otherwise challenging macro environment. In Q1FY24, we reported the highest-ever quarterly gold loan disbursement of Rs 53,612 crore and achieved an all-time high gold loan portfolio growth for any Q1. Our consolidated loan AUM grew 21% YoY to Rs 76,799 crore and consolidated profit after tax grew 27% YoY at Rs 1,045 crore.
Over the past several years, we have observed a paradigm shift in the perception of gold loans. More customers now consider gold loans as smart loans due to their faster processing and flexible repayment options.
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At Muthoot Finance, we witness an upsurge in the demand for gold loans during the festive season. This period marks not only the season of new beginnings but also prompts our customers to leverage their gold loans for various purposes such as fulfilling business requirements, travel, purchasing new homes, acquiring vehicles, and more. As a result, we anticipate a noticeable increase in the demand for gold loans during a festive season.
Further, we are
