Muthoot Fincorp seeks to end fiscal year with 28% loan growth



Muthoot Fincorp, the flagship of the diverse Muthoot Pappachan group and the third-largest pure-play gold lending player, expects to close the current fiscal year with full 28% growth in assets, senior official said of the society.

Driven by soaring gold prices in the first half of the year, the city-based company’s gold lending assets grew 24% in the first three quarters of the year on-going to reach around 17,500 crore rupees, while the group’s lending activity as a whole increased to 27,000 crore rupees by the end of December 2020, the official said, adding that this real growth was 14%, the remainder being boosted by rising gold prices. ” We have done better in the current quarter, with growth of over 27%, than the three previous quarters and close the year with total growth of 28% at the end of March, ” Thomas John Muthoot, chairman and chief executive of the group, told PTI on Monday. The privately held Muthoot Fincorp is the third largest gold lender after Muthoot Finance, Manappuram Finance. It has around 3,600 branches across the country and the group, which also deals with automotive retail, real estate, hospitality, IT and green energy, in addition to manage four credit activities, employing 27,000 people.

The group also known as Muthoot Blue owns four NBFCs – Muthoot Fincorp which deals with gold loans, Muthoot Capital, its listed entity which deals with loans for two-wheelers and used cars. , Muthoot Microfin and Muthoot Housing Finance. Muthoot Fincorp also performs domestic and international money transfers, tokens, foreign exchange transactions, insurance sales, wealth management, among others.

Muthoot said that despite the drop in gold prices, the company has maintained a healthy asset quality, with gross non-performing assets at 1-1.8% below the gold loan portfolio over the past five last years. In the December quarter, GNPA and cost of credit stood at 1.3% and 0.2% respectively, he said.

The gold loan portfolio represents around 67% of the group’s total assets (AUM) as of December 2020, which amounted to Rs 27,000 crore, and 87% of the group’s profits. In the current fiscal year, Muthoot Ficorp has paid around Rs 38,000 crore to 7.5 million customers, of which 4.5 million are nano, micro and small business customers, he said.

During the year, the company raised Rs 1,138 6 crore via the public sale of NCD apart from the issuance of NCD via a private placement with banks for an amount of Rs 1,750 crore and Rs 997 crore via market-linked debentures.

Muthoot also said that Crisil raised Muthoot Fincorp’s credit rating from A- stable to A + stable on Monday.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



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