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Muthoot Finance plans to open 114 additional branches in the next two to three months

18 Aug 2023 , 11:24 AM

The NBFC posted a 21.6% profit in the first quarter and added 59 additional branches to its network.

George Alexander Muthoot, the managing director of Kerala-based non-banking financial corporation (NBFC) Muthoot Finance, revealed in an exclusive interview with Moneycontrol on August 17 that the business intends to build 114 new branches across India in the next two to three months.

‘114 branches will open in the next two to three months after we received another approval. Notably, Muthoot noted, ‘We intend to open it all over India.’

In Q1FY24, Muthoot Finance opened 59 new branches, which is noteworthy. It currently has 4,742 branches altogether.

The MD also stated that he intends for the current fiscal year’s gold loans assets under management (AUM) to increase by between 10 and 15 percent year over year (y-o-y).

‘With the exception of the past year, we have routinely done gold loans AUM growth of between 15 and 20 percent. We therefore provided a forecast of 10-15% for this year. Therefore, I believe we should be able to accomplish that easily this year—or even a bit more,’ he remarked.

He continued by saying that branches in the suburbs are doing incredibly well and that demand for gold loans is still strong.

He stated that the market for gold loans is growing and that commercial banks that entered the gold loan industry two years ago were succeeding and growing.

It is a very safe portfolio, according to Muthoot, who explained the reasons for the increased competition in the gold loan portfolio.

For the first quarter that ended June 30, 2023, Muthoot Finance reported a 21.6 percent year-over-year (YoY) growth in standalone net profit at Rs 975.1 crore.

In Q1 of FY24, the company’s consolidated loan assets under management increased by 21% year over year to Rs 76,799 crore from Rs 63,444 crore.

‘Our subsidiaries, Muthoot Homefin and Belstar Microfinance continue to report strong disbursements,’ said George Jacob Muthoot, chairman of The Muthoot Group. ‘As a result, the contribution of our subsidiaries to the overall consolidated loan AUM has increased to 11%.’

The MD of Muthoot Finance stated, ‘With the continued focus on loan disbursements and recovery efforts, we are confident of maintaining our NIMs around 11%.’

The non-gold loan divisions, he continued, continue to have an improving business climate, and the new products, small company loans, and micro-personal loans saw strong demand in Q1FY24.

For feedback and suggestions, write to us at editorial@iifl.com

Muthoot Finance - Wikipedia

Related Tags

  • gold
  • Muthoot Finance
  • New Branches
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