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Muthoot Finance Surpasses Q4 Profit Estimates on Strong Gold Loan Growth

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News

15 May 2025

1 min read

UBS Forums

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Muthoot Finance, one of India’s top gold loan providers, reported a robust fourth-quarter profit of ₹15.08 billion, exceeding analysts’ expectations of ₹14.91 billion. The company’s growth was fueled by strong demand for gold-backed loans, boosted by record-high gold prices that increased collateral value and loan sizes.

The shift in consumer preference toward secured lending was also influenced by a slowdown in unsecured loans amid rising defaults, making gold loans a safer financing option. Muthoot’s standalone loan assets under management surged 43% year-on-year to ₹1.09 trillion, while interest income climbed approximately 42% to ₹47.84 billion.

In comparison, rival Manappuram Finance recently reported losses, impacted by stress in its microfinance segment.

 

Reference: Reuters

 

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